loan


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Related to loan: personal loan, Payday loan, Student loan

Loan

Temporary borrowing of a sum of money. If you borrow $1 million you have taken out a loan for $1 million.

Loan

The extension of money from one party to another with the agreement that the money will be repaid. Nearly all loans (except for some informal ones) 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 loan may be guaranteed by collateral, meaning that the lender either keeps an asset belonging to the borrower until the loan is repaid or has the right to seize such an asset in the event of default. Often, loans are obtained to purchase a major asset, such as a house. These loans are generally guaranteed by the asset they are used to buy. Lending is a foundational component of capitalism.

loan

the advance of a specified sum of MONEY to a person or business (the BORROWER) by other persons or businesses, or more particularly by a specialist financial institution (the LENDER) which makes its profits from the INTEREST charged on loans. The provision of loans by COMMERCIAL BANKS, FINANCE HOUSES, BUILDING SOCIETIES etc. is an important source of CREDIT in the economy serving to underpin a substantial amount of spending on current consumption and the acquisition of personal and business assets.

Loans may be advanced on an unsecured or secured basis; in the latter case the lender requires the borrower to offer some form of COLLATERAL SECURITY (for example property deeds) which the lender may retain in the event of the borrower defaulting on the repayment of the loan. See BANK LOAN, INSTALMENT CREDIT, MORTGAGE, LOAN STOCK, DEBENTURE, LOAN GUARANTEE SCHEME, INTEREST RATE, SOFT LOAN.

loan

the advance of a specified sum of MONEY to a person or business (the BORROWER) by other persons or businesses, or more particularly by a specialist financial institution (the LENDER), which makes its profits from the INTEREST charged on loans. The provision of loans by COMMERCIAL BANKS, FINANCE HOUSES, BUILDING SOCIETIES, etc., is an important source of CREDIT in the economy, serving to underpin a substantial amount of spending on current consumption and the acquisition of personal and business assets.

Loans may be advanced on an unsecured or secured basis; in the latter case the lender requires the borrower to offer some form of COLLATERAL SECURITY (for example, property deeds) which the lender may retain in the event of the borrower defaulting on the repayment of the loan. See BANK LOAN, INSTALMENT CREDIT, MORTGAGE, LOAN CAPITAL, DEBENTURE, LOAN GUARANTEE SCHEME, INTEREST RATE, SOFT LOAN, BOND.

References in periodicals archive ?
A $480,000 acquisition loan for a commercial building in Concord, N.
A $498,000 acquisition loan for a three-story mixed-use building in Elmhurst, N.
Our PRIVATE CONSOLIDATION loan program is one of the few consolidation products available to the growing number of graduates with privately insured student loans.
7872(c)(2), if a loan is directly attributable to the purchase or carrying of income-producing assets, the rules do apply.
Consolidation--taking out a new loan to pay off old ones--can be a good option for anyone looking to reduce large student loan bills.
Compared with borrowers in the home purchase loan market, many of whom are first-time homebuyers, a larger proportion of borrowers who refinance have high incomes.
The Group 3 certificates receive payments from the related pool 3 loans only.
A $395,500 acquisition loan for a two-story commercial building in Elmhurst.
Education loans with competitive interest rates--Federal, Undergraduate, Graduate, Professional and Career/Continuing Education loan programs.
The loan must carry a reasonable interest rate and have a reasonable repayment schedule.
The unpaid loan balances or loan guarantees deemed taxable gifts.
To encourage employees to participate as much as possible, many companies adopt loan provisions, which allow participants to borrow part of their retirement money without incurring an early-withdrawal penalty.