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- A transaction in which one entity, the lender, allows another, the borrower, to use property. In return, the borrower customarily promises to return the lender's property after a specified period and to pay a finance charge. The property, often cash, is called the principal. The finance charge is usually based on an interest rate, which is a percentage of the principal. In addition, borrowers must often commit some valuable property to the lender as collateral that becomes the lender's if the borrower does not repay the loan (or defaults).
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- Collateral, default, Foreclosure, Lien, Lienholder, Secured loan