A loan, also known as "pinjaman" in Indonesian, is a financial arrangement in which a lender provides a specific amount of money to a borrower. The borrower agrees to repay the borrowed amount along with interest and any applicable fees over a predetermined period. Loans are commonly used by individuals, businesses, and organizations to fund various needs such as purchasing a home, financing education, expanding a business, or covering unexpected expenses. The terms of the loan, including the interest rate, repayment schedule, and collateral (if required), are outlined in a formal agreement between the lender and the borrower.