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 ?
In Canada, delinquency rates are lower for auto loans than for most other credit products.
The average auto loan term has also been creeping higher and higher -- at the end of last year, 70% of all new auto loan terms were longer than 60 months, compared to around 50% at the end of 2010, Sidman reported.
Global Banking News-June 29, 2015--HDFC launches quick auto loans
For auto ABS asset performance remains in line with loss expectations and Fitch's outlooks are stable for prime and subprime auto loan ABS performance.
One, the state of the auto loan market has Quickly rebounded post crisis.
Yet the New York Fed also said that loans to borrowers with shoddy credit, also known as subprime lending, still make up a smaller proportion of total auto loans than before the Great Recession.
With this new addition to its services, the credit union aims to make the process of getting its customers the best rate on Auto Loans even smoother than before.
Together with these offers, our new auto loan product and its accompanying exclusive Ramadhan introductory offer will no doubt provide our customers with an extremely quick and hassle-free finance solution when purchasing the car of their dreams.
Seventy five borrowers who take up the Emirates NBD Auto Loan during the promotion period will be given a chance to enter a lucky draw for one of three prizes: an interest-free loan; a loan with zero processing
In keeping with the spirit of the holy month, 75 borrowers who avail of the feature-packed Emirates NBD Auto Loan during the promotion period, will be given a chance to enter a lucky draw for one of three prizes: an interest-free loan; a loan with zero processing fees; or free monthly loan payment where one installment of loan repayment is refunded to the customer.
In line with its ongoing commitment to provide customers with a range of exclusive privileges, Emirates NBD, a leading bank in the region, announced today the launch of a special promotion on auto loans at its Oud Metha branch in Dubai.
But Chinese financial regulators will shortly establish a legal system to permit foreign concerns' entry into the auto loan market, the sources said.