loan

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Related to Types Of Loans: Personal loans, Secured Loans

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 ?
That being the case, to the extent other types of loans are made eligible for such treatment, that would require a reduction in the amount of small business loans that could be sold under the liberal capital terms.
It is imperative that in attempting to facilitate the securitization of these types of loans we avoid creating another government agency or increasing government liabilities by extending additional government guarantees.
For example, in 1992 Representative Maxine Waters of California introduced a bill to expand the types of loans for which applicant characteristics are collected under HMDA and to expand the analysis required to evaluate an institution's CRA performance (Community Credit Improvement Act of 1992, H.
The industry argued that neither the law nor the regulations should set minimums or mandate the types of loans an institution must offer.
In addition, the loan portfolios of small banks tend to have a larger proportion of loans secured by real estate, which usually have longer terms and less volatile returns than the types of loans held by larger banks do.
There are many different types of loans available to both parents and students from various lenders, each with different options including fees, repayment plans, total loan amount, consolidation options, credit strength scores and FAFSA eligibility.
The program offers several different types of loans, including Graduate Access, Law Access, Medical Access, Dental Access, Business Access, Bar Examination, and Residency loans.
As a result, investors and originators of these types of loans are searching for vehicles to finance their activities -- the revolving CREL CDO was created to accomplish their goals.
Primary credit concerns stem from the general resolution provisions that allow for funding of various types of loans, including uninsured and second lien mortgages.
AFSCommerce is flexible enough to deploy one system for virtually all major types of loans, while accommodating the unique needs of our customers.