# What is a standard loan?

A standard loan is where the user provides collateral and a token is then lent to them.&#x20;

## Formation of a Regular Loan

To form a regular loan the following parameters are needed

* [Collateral Token](../loan-characteristics#collateral-token)
* [Provided Token](../loan-characteristics#provided-token)
* [Amount to borrow](../loan-characteristics#amount-to-borrow)
* [Collateral Amount](../loan-characteristics#collateral-amount)
* [List of User Supported Routes](../loan-characteristics#list-of-accepted-routes)
