​​​A loan is a borrowed sum from a bank or a financial institution. A person or entity who receives the money is called a borrower and the institution who provides the loan is called a lender.  

Nowadays a good credit score (above 700) is required to seek approval for any type of loan.

Finance seems to be a stressful word whenever you hear it. If we talk about learning finance at schools – it’s a standard subject with which you can’t relate much at this point in life. However, the onus is on you to explore the essential components of money management because this subject is crucial for your future.

In a Nutshell

Personal finance is an essential subject to learn before entering the real world. Hence, in this article, we have simplified some basic financial terms for you. However, we suggest you refer to these concepts a few times until you move to higher topics. For more complex words and concepts, please check the index of financial terms.