loan

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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 ?
The rise in the price of car loans was recorded in the range of 2 to 17 percent.
Car Loan 4U CEO James Wilkinson commented: "The investment from SEP represents a landmark for Car Loan 4U and will be invaluable in helping us continue our ambition of revolutionising the market, by transforming the way consumers take out car finance online.
The website "Car Loan Adviser" seems to live up to the promise of providing advice to consumers out there, on how to get a car loan through the best available option.
Hazem Yousef stated, "We are proud of the achievements of our Car Loans Department, which was established only one year ago.
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We expect this car loan product to appeal to all potential buyers of cars in the Sultanate.
Russia's car industry has been galvanised in recent years by the expansion of the car loan industry, according to industry experts who spoke to wardsauto.
Interest rates on car loans run at 25%, and qualifying is difficult in a weak job market.
For example, the AA's car loan includes a free vehicle inspection which is worth pounds 99.
The mortgages and loans section lets you apply online once and receive multiple home or car loan offers, as well as find the best current credit card rates.
70 with insurOur guide through the car loan mazeance - or pounds 1054 extra over the period of the loan.
Plache does not see car loan interest rates rising anytime soon because there is a "counterbalancing effect" that will come into play.