A loan facility is a type of financial arrangement that allows an individual or business to borrow money from a lender. It typically involves a contract between the borrower and the lender, which outlines the terms of the loan, such as the amount borrowed, the interest rate, and the repayment schedule. CREDIT is a form of loan facility, where the borrower is given a line of CREDIT that they can use to make purchases or pay for services. The lender will then collect payments from the borrower over time until the loan is paid off.