Making a loan is a financial transaction in which one party, typically a bank or other financial institution, provides money to another party in exchange for repayment of the loan with interest. The borrower is obligated to repay the loan in full, usually over a period of time, and the lender is entitled to receive interest on the loan. Making a loan is a common way for individuals and businesses to access capital for various purposes, such as purchasing a home, starting a business, or investing in stocks and bonds.