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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The Boro loanee saved Poppies captain Michael Richens' header and then blocked from goalscorer Kelly.
Of the loanees, Galloway is well down the pecking order and Williams is still recovering from the shoulder injury that has kept him out since November.
Watson's response was immediate, a double substitution which saw teenage Newcastle loanee Lewis McNall handed his debut.
Luke Denson is available again after suspension and Lloyd Ellams has finally got his clearance through to make his debut up front, while 18-year-old Wrexham loanee Joe Newton is in line for his home debut after impressing with his pace in Tuesday's win at Skelmersdale.
Goalkeeper Steve Harper, left, has been released by Hull City, but the KC Stadium club have offered a new contract |to his fellow former Huddersfield Town loanee Alex Bruce, right SUZANNE PLUNKETT
His loss leaves Blues boss Lee Clark with a defensive headache ahead of the weekend clash with in-form Derby as skipper Paul Robinson continues his suspension, while fellow loanee and former Darlington defender Dan Burn returned to Fulham in December despite initially agreeing a year-long deal.
It would be nice if we could keep the two loanees and, if we do so, we'll be happy with the squad we've got."
A borrowing club should have to pay the loanee's wages in full, regardless of whether he plays or not.
He said that three-year duration loan up to Rs 500,000 would be given without any guarantee, while above this limit and up to Rs 5 million loan for five-year duration would be granted by the BoP on mortgaging the loanee's vehicle, which he/she could not sold out for five year.
After a drab first half, Exiles defender Andy Sandell set the tone for the second with a fine strike while Aaron O'Connor broke through on his own but Fulham loanee Somogyi was equal to both.