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May 11th, 2008 at 9:41 pm A loan is a type of debt and usually refers to one involving a cash sum paid to the borrower by the lender; once complete it becomes a legally binding contract. Lending money has been around since it was invented although people and other goods or services have been lent to others for longer but as the majority of these are for money; this is what this article is about. Unlike most other types of loan, those involving cash will gradually be paid back over a period of time previously arranged; whilst it is possible to make 3 or 6 monthly repayments, the usual time period is one month.