loan

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Related to loans: Personal loans, Cash 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 classic literature ?
In the meantime Miss Davidson was devising plans to repay the loan.
A TRULY Pious Person who conducted a savings bank and lent money to his sisters and his cousins and his aunts of both sexes, was approached by a Tatterdemalion, who applied for a loan of one hundred thousand dollars.
As I bought drinks--others treated as well--the thought flickered across my mind that Mammy Jennie wasn't going to be repaid much on her loan out of that week's earnings of the Razzle Dazzle.
You are entirely and wholeheartedly welcome to the loan of any book on them.
Having got the money, how, in the present state of his trade, was the loan to be paid back?
He had only to make the date at which the loan expired coincide with the date of his marriage, and there was his father-in-law's money at his disposal, or at his wife's disposal--which meant the same thing.
Knowing where he could procure the loan, he was by no means equally sure of being able to find the security on which he could borrow the money.
He had not shown the slightest sign of attempting to fix anything that I had said to him in his mind, until I mentioned the time at which it was customary to permit the earliest repayment, on the part of a debtor, of money that had been advanced as a loan.
The Indian had thereupon asked to be informed of the best and safest person to apply to for the loan he wanted.
Since 1998, Collegiate Funding Services has facilitated the origination of over $20 billion in education loans and currently manages $12 billion in student loans for more than 460,000 borrowers.
Regulators have made it very clear that they are prepared to condemn a wide variety of lending practices, not just fraudulent high-rate high-fee loans in low-income areas.
Interest-free or low-interest loans were once a popular and successful means of shifting income from parents to children.