What is a Loan? 

A Loan is when you borrow money from someone, (banks, friends, family) and in return you agree to pay the money over time, and in most cases with interest. 

Ex. In girl terms: When your borrow money from your friend but agree to pay them back over time

What is interest? 

Interest is a fee you pay for borrowing money, and is a reward to the lender for allowing you to use their money. 

Ex. in girl terms: when you pay your friend back but also buy them food as a "thank you" for letting you borrow there money 

What is the purpose of a loan? 

Loans are used for many different reasons but are mostly used for big pruchases like cars, houses, and tuition. Loans also allow for more money circulation to happen. 

Ex. Buying your dream car that you can't afford to pay in full. 

How do I get a loan? 

There are many different ways to get a loan, but it is done through a financial instituion such as banks. They look at your income, and credit score in order to determine if they want to lend you money or not. 

Ex. Letting a friend borrow your clothes, but deciding to lend them clothes based on if they have returned the clothes they borrowed on time. 

What are the Pros and Cons of Loans?

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