In simple terms, a loan implies a sum of money that one party lends to the other to receive full repayment of the same principal amount with an added interest in the future. A loan is provided for a fixed time and requires repayment of the principal amount with added interest once the period ends.
In India, many financial institutions and commercial banks provide different loan facilities, divided into secured and unsecured loans. While secured loans (like home loans) require asset security against borrowings, the unsecured ones (like personal loans) don’t require any form of collateral.