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 ?
Servicer reports showed mixed results across securitized prime and non-prime auto loan pools in July.
" Reyes acknowledged the crucial role of the auto dealer partners in propelling the double-digit growth of EastWest's consumer portfolio in 2018 versus the prior year, with the growth driven largely by Auto Loan. "The success we share was made possible because of our collective effort, mutual trust, and passion to succeed," he said.
The PCC said it found the asset acquisition, in particular the auto loan portfolio, will not likely result in the substantial lessening of competition in the auto loan market.
Not only do 59.7 percent of Gen Xers have an auto loan, they have the highest median loan balances $18,741.
The share of auto loan borrowers who were three months behind on their payments peaked at 5.3 percent in late 2010.
Also, the Federal Reserve has been raising interest rates, causing auto loan rates to go up.
Customers availing of the OAB Auto Loan and Insurance offer will also be presented with a free credit card for the first year.
CU Direct said its credit unions have doubled their auto loans since 2013.
After spiking during the Great Recession and then declining, the rate of auto loans that have slid into delinquency (when a bill is 90 days past due) has risen since 2012, driven by a boom in car sales and competition to offer new financing options.
They told me I had Dh9,000 due against my auto loan and I would have to clear it before opening the account.
To help prospective purchasers during the festive period, OAB is offering existing and new customers the lowest installment auto loan through a combination of a reduced interest rate of 4.5 per cent per annum, first year free insurance when purchases are made from selected dealerships and a loan tenor of up to ten years.
He added, "OAB's Markabati Auto Loans are already one of Oman's preferred options for finance on new and pre-owned vehicles thanks to their flexibility, the hassle-free and quick application process, and extended repayment periods.