---
title: What is a loan?
description: Money that an individual (i.e., borrower) borrows from a financial institution (such as a bank) via a formal agreement of it being paid back with interest.
---

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# What is a loan?

## A borrowed sum of money to be paid back with interest.

A loan is a borrowed sum of money to be paid back with **interest**.

Financial institutions give loans to borrowers who agree to pay it back over a **specified period** at a **particular rate of interest**. See [interest rate](https://www.jvmlending.com/glossary/#interestrate). 

- [FAQs](https://info.jvmlending.com/knowledge/faqs?hsLang=en#main-content)

    - [Closing](https://info.jvmlending.com/knowledge/faqs?hsLang=en#closing)
    - [Getting Pre-Approved](https://info.jvmlending.com/knowledge/faqs?hsLang=en#getting-pre-approved)
    - [Post-Close](https://info.jvmlending.com/knowledge/faqs?hsLang=en#post-close)
    - [Making Offers](https://info.jvmlending.com/knowledge/faqs?hsLang=en#making-offers)
    - [Loan Products](https://info.jvmlending.com/knowledge/faqs?hsLang=en#loan-products)
    - [Mortgage Interest Rates](https://info.jvmlending.com/knowledge/faqs?hsLang=en#mortgage-interest-rates)

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