bank loan

(redirected from Bank Loans)
Also found in: Dictionary, Thesaurus, Encyclopedia.

Bank Loan

The extension of money from a bank to another party with the agreement that the money will be repaid. Nearly all bank loans are made at interest, meaning borrowers pay a certain percentage of the principal amount to the lender as compensation for borrowing. Most loans also have a maturity date, by which time the borrower must have repaid the loan. A bank loan occasionally is called a bank advance. See also: Loan.

bank loan

or

bank advance

the advance of a specified sum of money to an individual or business (the borrower) by a COMMERCIAL BANK, SAVINGS BANK. etc. (the lender). A bank loan is a form of CREDIT which is extended for a specified period of time, usually on fixed-interest terms related to the base rate of interest, with the principal being repaid either on a regular instalment basis or in full on the appointed redemption date. Depending upon the nature of the loan and the degree of risk involved, a bank loan may be unsecured or secured, the latter requiring the borrower to deposit with the bank an approved form of COLLATERAL SECURITY (for example the property deeds to his house). In the case of businesses, bank loans are usually renegotiated shortly before expiring, thus providing the borrower with a ‘revolving’ line of credit used mainly to finance WORKING CAPITAL requirements. See OVERDRAFT, INTEREST RATE.

bank loan

the advance of a specified sum of money to an individual or business (the borrower) by a COMMERCIAL BANK, SAVINGS BANK, etc. (the lender). A bank loan is a form of CREDIT that is often extended for a specified period of time, usually on fixed-interest terms related to the base INTEREST RATE, with the principal being repaid either on a regular instalment basis or in full on the appointed redemption date. Alternatively, a bank loan may take the form of overdraft facilities under which customers can borrow as much money as they require up to a pre-arranged total limit and are charged interest on outstanding balances. In the case of business borrowers, bank loans are used to finance WORKING CAPITAL requirements and are often renegotiated shortly before expiring to provide the borrower with a ‘revolving’ line of credit.

Depending on the nature of the loan and the degree of risk involved, bank loans may be unsecured or secured, the latter requiring the borrower to deposit with the bank COLLATERAL SECURITY (e.g. title deeds to a house) to cover against default on the loan.

References in periodicals archive ?
The household sector, which obtains most of the retail bank loans, has acquired 21.
Bank loan applications, consideration and approval can take 30-60 days.
Meltzer (1960) found that during the mid-1950's money tightening in the US, firms substituted bank loans with trade credits.
The MSRB believes that the availability of timely information about bank loan financings is important for market transparency and promoting a fair and efficient market.
NASDAQ: SSNC) has automated agent notices processing within SS&C bank loan services, the company said.
The family-owned business works with bank loans and its own private capital.
Francisco Barbosa, a Mexican immigrant who runs a bridal shop on Van Nuys Boulevard, said it seemed like many of the government and bank loan programs available were not within the reach of small-business owners like him.
According to statistics released by the State Statistical Bureau, outstanding bank loans at the end of the first quarter this year grew by 15% over the same period last year to 7.
CPAs should find it easier for clients and companies to obtain new bank loans.
The recent weakness in the growth of bank loans has raised the issue of how well banks have been playing their intermediation role and what their future contributions are likely to be.
Entrepreneurs get turned down for bank loans for a variety of reasons, including lack of assets, collateral and business experience.
Aladdin's business focus is on non-traditional fixed income based strategies and the firm provides investment coverage across a broad range of sectors including high grade/high yield bonds, leveraged bank loans, asset-backed securities, credit default swaps and structured credit.