What Is a Loan and How Does It Work?

  • A loan is money you borrow — but you must pay it back with extra (called interest).
  • Loans can help with emergencies or big goals — like starting a business or fixing your house.
  • You must repay in small parts (called installments), usually monthly.
  • Always check the interest rate and repayment plan before agreeing.

👉 A loan can help — or trap you. Read before you sign.