Loan

The act of giving money, property or other material goods to a another party in exchange for future repayment of the principal amount along with interest or other finance charges. A loan may be for a specific, one-time amount or can be available as open-ended credit up to a specified ceiling amount.

The terms of a standardized loan are formally presented (usually in writing) to each party in the transaction before any money or property changes hands. If a lender requires any collateral, this will be stipulated in the loan documents as well. Most loans also have legal stipulations regarding the maximum amount of interest that can be charged, as well as other covenants such as the length of time before repayment is required.

Loans can come from individuals, corporations, financial institutions and governments. They are a way to grow the overall money supply in an economy as well as open up competition, introduce new products and expand business operations. Loans are a primary source of revenue for many financial institutions such as banks, as well as some retailers through the use of credit facilities.


Investment dictionary. . 2012.

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  • LOAN — (Heb. הַלְוָאָה, halva ah), a transaction in which a thing, usually money, is given by one person, called the malveh ( lender ), to another, called the loveh ( borrower ), for the latter s use and enjoyment, and in order that such thing or its… …   Encyclopedia of Judaism

  • loan — n 1 a: money lent at interest b: something lent usu. for the borrower s temporary use 2: a transfer or delivery of money from one party to another with the express or implied agreement that the sum will be repaid regardless of contingency and usu …   Law dictionary

  • loan — verb. In 19c British English, loan was a standard alternative for lend, but by the time Fowler wrote (1926) loan had been largely driven out by lend, although it has continued in use in AmE. In current use loan is mostly confined to non British… …   Modern English usage

  • Loan — Loan, n. [OE. lone, lane, AS. l[=a]n, l[ae]n, fr. le[ o]n to lend; akin to D. leen loan, fief, G. lehen fief, Icel. l[=a]n, G. leihen to lend, OHG. l[=i]han, Icel. lj[=i], Goth. leihwan, L. linquere to leave, Gr. lei pein, Skr. ric. [root]119. Cf …   The Collaborative International Dictionary of English

  • loan — (n.) mid 13c., from O.N. lan, related to lja to lend, from P.Gmc. *laikhwniz (Cf. O.Fris. len thing lent, M.Du. lene, Du. leen loan, fief, O.H.G. lehan, Ger. Lehn fief, feudal tenure ), originally to let have, to leave (to someone), from PIE *lei …   Etymology dictionary

  • LOAN — oder Loan bezeichnet: LOAN, ICAO Code des Flugplatz Wiener Neustadt/Ost Benjamin F. Loan (1819–1881), US amerikanischer Politiker Diese Seite ist eine Begriffsklärung zur Unterscheidung mehrerer mit demselben Wor …   Deutsch Wikipedia

  • loan — loan·able; loan; loan·er; loan·ing; …   English syllables

  • loan — ► NOUN 1) a thing that is borrowed, especially a sum of money that is expected to be paid back with interest. 2) the action of lending. ► VERB ▪ give as a loan. ● on loan Cf. ↑on loan DERIVATIVES …   English terms dictionary

  • loan — [lōn] n. [ME lone < ON lān (akin to OE læn, lending, loan, lænan, to lend) < IE base * leikw , to leave behind > L linquere, Gr leipen, Sans riṅákti, (he) leaves] 1. the act of lending, esp. to use for a short time [the loan of a pen] 2 …   English World dictionary

  • Loan — Loan, v. t. [imp. & p. p. {Loaned}; p. pr. & vb. n. {Loaning}.] To lend; sometimes with out. Kent. [1913 Webster] By way of location or loaning them out. J. Langley (1644). [1913 Webster] …   The Collaborative International Dictionary of English

  • Loan — (l[=o]n), n. [See {Lawn}.] A loanin. [Scot.] [1913 Webster] …   The Collaborative International Dictionary of English

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