Loan basics
Understand the core concepts behind loans, borrowing, principal, terms and common loan structures.
Personal loans provide a fixed amount of money that is usually repaid over an agreed term. This guide explains the structure without recommending a lender.
Secured loans are tied to collateral; unsecured loans are not. The difference changes lender risk, borrower risk and often the pricing structure.
Installment loan meaning, repayment schedules and how fixed instalments differ from revolving credit.
Principal, outstanding balance and the difference between principal and interest.
How loan term affects monthly payments, total cost and repayment planning.
How amortization reduces principal over time and changes the interest/principal split.
How reusable credit limits, drawdowns and repayments work.