A loan is a legal agreement between a borrower and a lender whereby the borrower receives a sum of money (the principal) that they must later repay. The majority of loans fall into one of three categories:
Fixed monthly payments are made on an amortized debt until it is repaid.
Loan with Delayed Payment: One lump sum due at loan maturity
Bond: A lump sum payment made at loan maturity (the face or par value of a bond)