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 case an individual opt for car loan, he or she would have to make a 20% down-payment and will get a loan for only 80% of the car's value.
In a subsequent press release, he says the Central Bank of Liberia, has in place a car loan scheme/policy, which began in 2013, for its senior staff to buy their own cars with repayment over a maximum five-year period.
The Sh20 million allocation for car loans and mortgages is only enough for one member of staff,' he said.
The gang fraudulently acquired 16 vehicles worth more than BD400,000 by posing as professionals to get car loans in 2013 and 2014.
In order to obtain these loans, the same paperwork must be submitted and the same terms as for the car loans apply.
We found that flex commissions resulted in consumers paying very high interest rates on their car loans.
That in turn requires some shopping to find out just how good a car loan you can get.
In the USA, where cars and car loans are bigger, the New York Federal Reserve bank warned arrears in the sub-prime car-loan sector were a "significant concern".
The car loan facilities bring in a lot of value to make it easier for customers to own their dream cars and I urge them to make the most of this opportunity and enjoy the exclusive benefits we offer," noted Muhannad.
Comparing car sales across counties as the financial crisis unfolded, they found that car sales fell more sharply in counties where nonbank car loans were more prevalent.
There is a complementary discount voucher worth QR1,500 from Zeibart along with a chance to win the car loan back up to QR100,000.
The dunia Green Car Loan will offer customers who drive an eco-friendly or fuel-efficient car in the UAE a lower interest rate which not only provides a financial incentive for customers to purchase an electric or fuel efficient car but also helps drive down the region's increasing emissions.