What is the difference between a loan and credit?

A loan is a fixed amount of money borrowed from a lender that is typically repaid with interest over a set period of time. Credit, on the other hand, is a financial arrangement that allows a person to borrow money up to a certain limit, known as a credit limit, and repay it over time. Loans are a form of credit, but credit can also refer to other types of borrowing arrangements, such as credit cards or lines of credit.