unless you got a loan from a loanshark, then you aren't going ot get it in cash. It would be paid into a bank account of your choice. Nothing to stop you withdrawing the money to have it in cash lying about though
Once you get the loan you can do what you like with it (unless it was done specifically to pay for a particular purchase. All the lender is concerned about is that you make the payments on time.
Most wouldn't want to do that but you could take cash and leave it around to be stolen or burned in a fire or lost. Get a HELOC and they give you a check book so you can write yourself a check or you can transfer to a bank account and withdraw the cash.
When you borrow money from other person, the money given to you is a loan. When your request to borrow and money given to you are recorded, it is a legal loan.
