loan

(redirected from loans)
Also found in: Dictionary, Thesaurus, Legal, Idioms, Encyclopedia.
Related to loans: Personal loans, Cash loans

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 classic literature ?
When the banks demanded that he pay his loans, he knew that the banks were in sore need of the money.
Gandinot, kindest of pawnbrokers, had obliged, in his unofficial capacity, with a trifling loan.
That was proved by the very handsome way in which he had behaved in the matter of a small loan when, looking in at the casino after parting from Ruth, he had found Mr Warden in sore straits for want of a little capital to back a brand-new system which he had conceived through closely observing the run of the play.
Knowing where he could procure the loan, he was by no means equally sure of being able to find the security on which he could borrow the money.
Up to that time I never had had in my possession so much money as one hundred dollars at a time, and the loan which I had asked General Marshall for seemed a tremendously large sum to me.
In the meantime Miss Davidson was devising plans to repay the loan. Her first effort was made by holding festivals, or "suppers." She made a personal canvass among the white and coloured families in the town of Tuskegee, and got them to agree to give something, like a cake, a chicken, bread, or pies, that could be sold at the festival.
And you are too good a businessman to loan money for buried treasure seeking, or to loan money without security--unless you had some special object in view.
"You have never mentioned the loan. In any other man I should have thought that the prompting of a magnanimous and noble character.
Philip had found the brother's address only by reading the letter in which he refused a loan; but he shrugged his shoulders: there was no use in recrimination.
'The amiable and wealthy Lord offers a third loan; but the scrupulous Countess positively refuses to take it.
lines of credit, term loans, letters of credit, leasing, cash management and card services, merger and acquisition advisory services, investment and trust services, student loans) tailored to the needs of participants in postsecondary education.
Once a minor product targeted for truly hard-up borrowers, second-lien loans have literally exploded in popularity in the past few years, especially as investment vehicles like hedge funds troll for higher yields and lenders direct assets into collateralized loan obligation (CLO) vehicles to offload balance sheet risk.