Imagine you really want to play with your friend's cool toy truck, but you don't have one right now. Your friend has this awesome green truck that you'd love to play with.
Your friend is super nice and says, 'Okay, you can play with my truck now!' They let you borrow the truck to play with. But, there's one important rule that comes with this...
You must promise to give it back later! Maybe after snack time or before you go home. This is the most important part - you don't get to keep the truck forever. You're just borrowing it for a little while.
That's kind of like a loan! A loan is when someone lets you use something you don't have right now, but you must promise to give it back later. Just like the bank can loan money to grown-ups, but they have to pay it back. It's like borrowing, not keeping forever.
Let's remember what we learned about loans. A loan is when you borrow something that you need to return later. You get to use the item now, but it's not yours to keep forever. You must promise to give it back after an agreed time. Loans can be toys, money, or other things people share. Returning what you borrow shows you're responsible and trustworthy.