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 ?
According to the survey, almost 70 per cent of adults aged 18 years and above with personal loans have experienced at least two of those conditions or both, illustrating signs of debt stress.
Apart from taking stock of your finances and looking for low interest rates, there are other important factors that you need to consider when selecting the right personal loan. Read on to know more.
Data from the apex bank said that personal loans to residents dropped to AED333.5bn in the January-March quarter compared to AED336.5bn in the same period last year.
In an early analysis of Insight Score for Personal Loans, application portfolios for a prime personal loan lender and a subprime consumer finance lender both experienced significant results.
To determine if credit scores rise after taking out a personal loan, LendingTree analysts looked at the scores of people who took out personal loans to see how their credit scores changed after one month, three months, six months and 12 months.
TransUnion's Q4 2018 Industry Insights Report found that personal loan balances increased $21 billion in the last year to close 2018 at a record high of $138 billion.
Third-quarter data showed that the moderate decline in demand for personal loans was more pronounced in Abu Dhabi.
Unsecured personal loan: Most personal loans are unsecured loans.
For more about Citi Personal Loans, visit https://www.citibank.com.ph/loans.
Web-based firms like LendingClub, Prosper Marketplace and closely held Social Finance are driving the expansion of personal loans. LendingClub said in a filing that personal-loan originations in the first quarter soared 20 percent from a year earlier to $2.1 billion.
The loan-level data reports that 50.4% of UCI 14 and 49.5% of UCI 15 excluding both personal loans and defaults have been subject to some type of restructuring arrangement.
Most of us could use the extra cash to fulfill a life goal-starting a small business, paying for graduate studies, funding that dream vacation-but are too wary of increasing our debt to even consider taking out a personal loan. But if you're going to use that money to invest in something that will improve your way of life and you have the means to pay, should you really be so concerned about owing money?

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