Loan collection refers to the process of recovering money that borrowers owe to lenders. This can involve various methods, including reminders, phone calls, and formal letters. If borrowers fail to repay their loans on time, lenders may escalate the situation by involving collection agencies or taking legal action. The goal of loan collection is to ensure that lenders receive the funds they are owed while maintaining a professional relationship with borrowers. Effective communication and understanding of repayment options can help resolve issues and prevent further complications for both parties involved in the loan agreement.