A loan is an overdraft which is taken by a person from a financial institution usually to settle financial emergencies.
This refers to the technical terms which are specific and peculiar to an area of expertise.
With this in mind, if Sylvester is taking a loan and is confused by the jargon, then he has to ask the person to give proper explanations so that he would have a better understanding.
Please note that your question is incomplete so I gave you a general overview to help you get a better understanding of the concept.
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