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 ?
5 million loan for a four-story apartment building in Brooklyn, N.
A $305,500 loan for a three-story apartment building in the Bronx;
Loan consolidation programs--help make repayment easier to manage and free up cash each month.
ACS, a FORTUNE 500 company with more than 50,000 people, provides information technology outsourcing, enrollment optimization, student financial aid outsourcing, imaging, student call centers, loan servicing, and other services to more than 1,000 colleges and universities.
Charlotte makes a $100,000 interest-flee loan to her daughter, Doris, who has no investment income.
Federal law mandates that your new loan feature the combined balance of the previous loans, as well as a weighted average of the interest rates of all your loans adjusted up to the nearest one-eighth percent.
Following Zimmerman, the courts have held that while the riskiness of a loan is not a contingency invalidating its bona fide nature, repayment depending on the profitability of the borrower's operations is such a contingency.
Loans are permitted only if the plan language specifically authorizes them, although you don't have to put in a loan provision when you first adopt a 401 (k) - you can add it later on.
Differences in the distribution of applicants by income accounted for some of the differences in loan disposition rates among racial or ethnic groups, but other factors also seemed to be important because white applicants in all income groups had lower rates of denial than black or Hispanic applicants.
A $393,750 acquisition loan for a three-story mixed-use building in Lawrence, Mass.
Nelnet originates, holds, and services student loans, principally loans originated under the Federal Family Education Loan Program, referred to as the FFEL Program or FFELP
The total outstanding balance of all loans cannot exceed the lesser of (1) the greater of half of the present value of the employee's vested benefits or $10,000; or (2) $50,000, reduced by the difference between the highest outstanding loan balance in the preceding 12 months and the current balance (12-month rule).