A type of debt that entails the passing of financial assets over time beween the lender and the borrower, usually under the conditions that the initial amount is repaid over a set time, usually in instalments, for a rate of interest. If the person fails to pay back the loan as agreed, they are said to default on that loan. Loans tend to be either secured - those guaranteed by collateral such as property, or other real assets. Unsecured loans are based on the credit rating of the borrower, which comes with higher risks for the lender.