A loan facility refers to a specific amount of money that is made available by a financial institution, such as a bank or credit union, for borrowing purposes. This type of financing allows individuals and businesses to access funds for various reasons, including purchasing assets, investments, or covering operational costs. The loan facility typically comes with certain terms and conditions, such as an interest rate, repayment schedule, and collateral requirements. It is important for borrowers to carefully consider the details of a loan facility before accepting it in order to ensure that they can meet the obligations associated with the financing.