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 ?
BIRMINGHAM In: David Bentley (from Tottenham, loan), Curtis Davies (from Aston Villa, undisclosed), Obafemi Martins (from Rubin Kazan, loan).
ACS, a FORTUNE 500 company with more than 50,000 people, provides information technology outsourcing, enrollment optimization, student financial aid outsourcing, imaging, student call centers, loan servicing, and other services to more than 1,000 colleges and universities.
ICON's five-year second-lien loan is, in effect, a secondary piece of a larger, traditional asset-based revolving loan the company took out with a first lien; that loan, led by Bank of America, totaled $250 million spread among seven lenders.
Dunagan notes that if the value of the homeowners' property doesn't appreciate much over the first three to five years, it may be difficult to get a better loan. In today's housing market, rapid appreciation isn't likely.
* An acquisition/construction loan for $49.569578 million and a mezzanine loan was for $9.971769 for a proposed 100-unit luxury condominium building at.421-433 E.
Loan types: Gift loans can be either of the following types:
The ratio of classified loan commitments to total commitments fell to 4.8 percent, the lowest level since 2000, as industry charge-off trends and demand in the secondary market for lower quality assets removed many of the weakest loans from the banking system.
Jackson Hewitt is a franchise, and an owner of each office contracts with loan companies and usually takes a cut of the interest.
"When borrowers are reported delinquent, we establish a reserve which is an estimate of the amount of loss if the loan goes to claim," Zimmerman said.
Spousal consent is necessary to secure a plan loan for a married participant.
One hundred years ago, the leading critic of "salary loan lending" called such people "sharks, leeches and remorseless extortioners." Today's consumer advocates call payday lenders "predatory" and "legal loan sharks."
I wanted to work independently, where I could get to know the people who were applying for the loan." Guarino explains.