loan

(redirected from Loanable)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.

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 ?
While alluding to the effects of increased reserves on the loanable funds market, Simpson does not explain the precise role commercial banks have in the process of lowering interest rates.
If the government issues debt, the demand curve in the market for loanable funds shifts to the right, increasing the interest rate and the quantity supplied of loanable funds traded.
Like many pre-Keynesian theories of the business cycle, the Austrian theory maintains that the interest rate is determined in the market for loanable funds.
Mainstream economists argued that, depending on the overall capacity and capability of the developing countries, their development process would not be bounded by the availability of domestic resources of finance as capable countries could attracted global capital and therefore enhance the pool of loanable funds.
At root, the natural rate of interest reflects intertemporal preferences on both sides of the market for loanable funds.
The cycle starts following a credit expansion resulting from the accumulation of loanable funds, making the natural rate of interest fall below the real interest rate, i.e.
The net flow of foreign direct investments is still positive, but the banks are paying off their net liabilities because of the weak domestic demand for loanable funds.
Since the objective of establishing Sindh Bank is to contribute towards economic development, it would be highly desirable that the newly born bank would direct its loanable pool towards the private sector in the larger interest of the economic well being of the people rather than responding to the government calls for borrowing as a safe and risk free haven for investment.
It a well known fact that the dearth of cheap loanable funds occasioned by a virtually non-existent mortgage market is the bane of housing development in Nigeria.
But when asked whether he would inquire about the midfielder, Moyes said: "Probably not at the moment but I'll always have to consider people who are loanable."
What the next few years will involve is the threat of serious inflation and unwinding a lot of these gigantic programmes that have flooded an additional several trillion dollars of new loanable funds into the market to lower interest rates, keep American banks, insurance companies and households solvent.
"All of this has an obvious impact on the type of loanable funds available for debt issuance by the government.