bank loan

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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 ?
Bank loan applications, consideration and approval can take 30-60 days.
"It's a matter of a lot of paperwork," says Roberto Cohen, a company vice president." It's easier for us to negotiate better rates and better terms with bank loans."
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 7.56 trillion yuan (911 billion U.S.
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Nevertheless, there are also good rewards in getting a bank loan approved.
They are also accused of forging the signature of Mr Osman Tahir Sheikh Said on November 22, 2014 in order to secure a bank loan of Sh735 million from NBK.The case will be mentioned on June 21, 2019 for pre-trial.
The paper saidtightening of domestic prudential policies, particularly those tightening measures meant to preserve resilience of the banking system are effective in curbing growth of real bank loan commitments to borrowers for acquiring new residential properties.
BANKING AND CREDIT NEWS-March 21, 2019--Indian non-banking finance firms increase bank loan uptake
The agency has filed a fresh chargesheet in this case, under the PMLA, early this week and had charged the Sandesaras and others with money laundering and siphoning bank loans.
Rangpur Chamber of Commerce and Industry (RCCI) today greeted Prime Minister Sheikh Hasina and expressed deep gratitude to her for lowering interest rate of bank loans to a single digit, reports BSS.
Summary: Bengaluru (Karnataka) [India], June 26 (ANI): Reacting to fugitive Vijay Mallya's letter, claiming that he wanted to pay back the bank loans, Minister of State for External Affairs MJ Akbar on Tuesday said he could have done so in the years that have gone by.
Some US$100 million of the aggregate re-profiled bank loans shall be repaid and an equivalent amount of about US$100 million will be forgiven once the restructuring becomes effective.