A Contract Loan is a type of loan agreement that outlines the terms and conditions between two or more parties. By entering into a contract loan, the parties agree to certain commitments such as repayment schedules, interest rates, collateral requirements, default consequences, and any other obligations related to the loan. The contract serves as an official record of the transaction and provides protection for both parties if either party fails to meet their obligations. In short, a contract loan is a formal agreement that binds two or more parties and ensures that all parties comply with the rules of the loan.