Refers to a lump sum of money that a borrower borrows from a bank and agrees to repay over a specific period of time.

The description you provided refers to a "loan." A loan is a financial agreement wherein a borrower receives a specific amount of money from a lender, typically a bank, with the commitment to repay the borrowed amount, known as the principal, plus any applicable interest, over a designated period.

Loans can come in various types, including personal loans, mortgages, auto loans, and student loans, each designed for different purposes. The terms of a loan, including the interest rate and repayment schedule, can vary based on the borrower's creditworthiness, the lender's policies, and the nature of the loan. Understanding the specifics of a loan is vital for borrowers to manage their finances effectively and avoid potential pitfalls such as default or excessive debt.