A new loan refers to a fresh financial agreement between a borrower and a lender, wherein the borrower receives an amount of money from the lender, which they must repay with interest over time. This is typically used for large purchases or expenses that cannot be covered by the individual's current funds, such as buying a home or paying for education. The term "new" indicates that this is a recent and separate transaction, rather than an additional loan taken out in addition to an existing one.