Take out a loan is a financial transaction in which an individual or business borrows money from a lender. The borrower agrees to pay back the loan with interest over a set period of time. Borrowing is a common way for individuals and businesses to access funds for large purchases, investments, or other expenses. The lender typically requires collateral to secure the loan, such as a house or car, and the borrower must agree to the terms of the loan before it can be taken out.