A loan is the money you borrow from an institutional lender like a bank, a non-banking financial institution, or an individual lender. The lender lends you the money in exchange for future repayment of the principal and interest. Loans like personal loans or cash advance loans are unsecured. On the other hand, a mortgage or home equity loan is secured. A loan may be for a particular, one-time amount or available as an open-ended line of credit up to a stipulated limit or ceiling amount.