A loan is a sum of money borrowed for a specific period of time from a person or a formal institution that needs to be paid within a specific duration and often back with interest

Example:
For example, you borrowed 10,000 rupees from your friend for six months to paint your house. This money is the loan amount. She has asked to charge 500 rupees per month as interest. The total money along with the interest amount is called loan. This is a serious financial commitment and should be repaid in a decided time period.
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