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loan

  (lōn) pronunciation
n.
    1. Something lent for temporary use.
    2. A sum of money lent at interest.
  1. An act of lending; a grant for temporary use: asked for the loan of a garden hose.
  2. A temporary transfer to a duty or place away from a regular job: an efficiency expert on loan from the main office.
tr.v. Usage Problem., loaned, loan·ing, loans.

To lend.

[Middle English lan, lon, from Old Norse lān.]

loaner loan'er n.

USAGE NOTE   The verb loan is well established in American usage and cannot be considered incorrect. The frequent objections to the form by American grammarians may have originated from a provincial deference to British critics, who long ago labeled the usage a typical Americanism. Loan is, however, used to describe only physical transactions, as of money or goods; for figurative transactions, lend is correct: Distance lends enchantment. The allusions lend the work a classical tone.


 
 

When a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the borrowed money, along with interest, at a predetermined date in the future.

Investopedia Says:
Borrowing money to buy a new car is a loan, as is borrowing money to construct a specialty coffee shop in your kitchen... we all have dreams.

Related Links:
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Learn how to get out of debt fast. Digging Out Of Personal Debt
Do you know how your borrowing activities affect your credit rating? Find out here. The Importance of Your Credit Rating
Not having enough money isn't necessarily the result of not earning enough money - learn to choose fortune over disaster. Seven Common Financial Mistakes


 

Money advanced to a borrower, to be repaid at a later date, usually with interest. Legally, a loan is a contract between a buyer (the borrower) and a seller (the lender), enforceable under the Uniform Commercial Code in most states. The terms and conditions for repayment of a loan, including the finance charge or interest rate, are specified in a loan agreement. A loan may be payable on demand (a Demand Loan), in equal monthly installments (an Installment Loan), or they may be good until further notice or due at maturity (a Time Loan).

There are various methods lenders use to categorize loans, both for internal control and for reporting lending activity to governmental agencies, for example, classification by maturity, industry, security, and type of borrower. Bank loans are normally classified by: (1) Commercial & Industrial Loans to business organizations; (2) interbank loans, which are mostly Federal Funds transactions, from one bank to another; (3) Loan Participations or loans to a single borrower shared by several banks; (4) real estate loans, which may be subdivided into construction loans and long-term Mortgage loans; and (5) loans to consumers, such as auto loans and other forms of consumer installment credit. See also Consumer Credit; Credit; Loan Participation; Parallel Loan; Secured Loan; Syndicated Loan; Term Loan; Time Loan; Unsecured Loan; Working Capital Loan.

 

Offer of borrowed money. Agreement for Debt financing. See Mortgage.
Example: The Wilsons used a Mortgage to buy their home, a Home Equity Loan to add a room, and an unsecured bank loan to buy new furniture.

 
Thesaurus: loan

verb

    To supply (money), especially on credit: advance, lend. See give/take/reciprocity.

 
Antonyms: loan

v

Definition: give money, possession temporarily
Antonyms: borrow


 
in business, sum of money borrowed at a particular interest rate. More generally, it refers to anything given on condition of its return or repayment of its equivalent. A loan may be acknowledged by a bond, a promissory note, or a mere oral promise to repay. Because of biblical injunctions against usury, the early Christian church forbade the taking of interest. In feudal European society, loans were little needed by the great mass of relatively self-sufficient and noncommercial peasants and serfs, but kings, nobles, and ecclesiastics were heavy borrowers for personal expenditures. Merchants and other townsmen, especially the Jews, were the moneylenders, and various devices were found for circumventing the prohibition of usury. With the rise of a commercial society, restrictions on the taking of interest were gradually relaxed. Today, banks and finance companies make most loans, usually on collateral, such as stocks, personal effects, and mortgages on land and other property, or on assignments of wages. Credit unions have attained some importance in making personal loans at relatively low interest rates, and microcredit programs and organizations, which offer small-scale loans, have proved useful, particularly in developing countries, in helping individuals to establish small businesses. A pawnbroker lends money on the security of articles left in his shop.


 

"delivery of a sum of money to another under a contract to return at some future time an equivalent amount with or without an additional sum agreed upon for its use; and if such be the intent of the parties the transaction will be deemed a loan regardless of its form" 428 P. 2d 190, 194. The characterization of a transaction as a loan or some other type of borrowing has significance in ascertaining whether usury laws apply to the amount of interest being charged.

 
pronunciation

IN BRIEF: The act of lending. Also: A sum of money lent.

pronunciation There is no greater loan than a sympathetic ear. — Unknown

Tutor's tip: Another word that sounds like "loan" which means the act of lending, is "lone" which means solitary.

 
Wikipedia: loan


A loan is a type of debt. All material things can be lent but this article focuses exclusively on monetary loans. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.

The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt. A borrower may be subject to certain restrictions known as loan covenants under the terms of the loan.

Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding. Bank loans and credit are one way to increase the money supply.

Legally, a loan is a contractual promise of a debtor to repay a sum of money in exchange for the promise of a creditor to give another sum of money.

Types

Secured

A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security - a lien on the title to the house - until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.

In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter - often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer.

A type of loan especially used in limited partnership agreements is the recourse note.

Unsecured

These may be available from financial institutions under many different guises or marketing packages:

The interest rates applicable to these different forms may vary depending on the lender, the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974.

Abuses

Predatory lending is one form of abuse in the granting of loans. It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over him or her. Where the moneylender is not authorised, it could be considered a loan shark.

Usury is a different form of abuse, charging excessive interest. In different time periods and cultures the acceptable interest rate has varied, from no interest at all to unlimited interest rates. Credit card companies in some countries have been accused by consumer organisations of lending at usurious interest rates and making money out of frivolous "extra charges" [1]

Abuses can also take place in the form of the customer abusing the lender by not repaying the loan or with an intent to defraud the lender.

See also

References

  1. ^ Credit card holders pay Rs 6,000 cr 'extra' May 03, 2007

 
Translations: Translations for: Loan

Dansk (Danish)
1.
n. - lån
v. tr. - låne

idioms:

  • a loan of    et lån på
  • loan out    udlåne
  • loan shark    lånehaj, ågerkarl
  • on loan    til låns, som et lån

2.
n. - udlån

Nederlands (Dutch)
lening, geldlening, het uitlenen, geleend woord/ gebruik, het geleende, laan, koeienmelkerij, (uit) lenen, ontlenen aan

Français (French)
1.
n. - (Fin) emprunt, prêt
v. tr. - prêter, prêter à

idioms:

  • a loan of    un emprunt de, un prêt de
  • loan out    prêter (à) (qn de l'argent)
  • loan shark    usurier, prêteur sur gages
  • on loan    prêter (ses services), être prêté à (un objet)

2.
n. - (Écosse, Nord de L'Angl.) chemin, petite route, lactarium

Deutsch (German)
1.
n. - Anleihe, Darlehen, Leihgabe
v. - leihen, verleihen

idioms:

  • a loan of    das Leihen
  • loan out    ausleihen
  • loan shark    Kredithai
  • on loan    geliehen, verliehen

2.
n. - Melkstelle, Gasse

Ελληνική (Greek)
v. - δανείζω/-ομαι
n. - δάνειο, δανεισμός

idioms:

  • a loan of    δανεικό
  • loan out    δανείζω
  • loan shark    τοκογλύφος
  • on loan    δανεικός

Italiano (Italian)
prestare, prestito

idioms:

  • a loan of    un prestito di
  • be on loan    essere a prestito
  • loan out    prestare
  • loan shark    usuraio

Português (Portuguese)
v. - emprestar
n. - empréstimo (m) (Fin.)

idioms:

  • a loan of    empréstimo
  • loan out    emprestar de
  • loan shark    agiota (m) (f) (Fin.)
  • on loan    pegar emprestado

Русский (Russian)
давать взаймы, брать взаймы, ссуда, что-л. данное во временное пользование, выдача книг, заимствование

idioms:

  • a loan of    заем чего-л.
  • be on loan    быть во временном пользовании
  • loan out    ссужать
  • loan shark    ростовщик

Español (Spanish)
1.
n. - préstamo, empréstito
v. tr. - prestar

idioms:

  • a loan of    un préstamo de
  • loan out    prestar
  • loan shark    usurero
  • on loan    prestado, a préstamo

2.
n. - cesión

Svenska (Swedish)
v. - låna ut
n. - lån, kredit

中文(简体) (Chinese (Simplified))
贷款, 债权人, 借出, 贷与

idioms:

  • a loan of    ...的贷款
  • loan out    贷出, 借给...
  • loan shark    放高利贷者
  • on loan    借贷

中文(繁體) (Chinese (Traditional))
n. - 貸款, 債權人, 借出
v. tr. - 借出, 貸與

idioms:

  • a loan of    ...的貸款
  • loan out    貸出, 借給...
  • loan shark    放高利貸者
  • on loan    借貸

한국어 (Korean)
1.
n. - 대여물, 대부금, 빚, 대여
v. tr. - 빌려주다, 이자를 붙여 대부하다

idioms:

  • a loan of    대부
  • loan out    빌려주다

2.
n. - 차용어, 외래어, 외래풍속

日本語 (Japanese)
n. - 貸付け, 融資, 貸借物, 一時的義務, 外来の風習, 貸し付け
v. - 貸し付ける

idioms:

  • a loan of    貸付金, 公債
  • be on loan    貸し付けて, 借り入れて
  • bridging loan    つなぎの融資
  • loan out    貸す
  • loan shark    高利貸し
  • loan translation    翻訳借用

العربيه (Arabic)
‏(فعل) يقرض, يعير (الاسم) قرض بفائدة, شئ معار, إعارة, كلمه دخيله‏

עברית (Hebrew)
n. - ‮הלוואה, מילווה, השאלה‬
v. tr. - ‮השאיל, הילווה‬
n. - ‮נתיב, שביל צר, מקום רחב לחליבת פרות‬


 
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American Sign Language
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Dictionary. The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2007. Published by Houghton Mifflin Company. All rights reserved.  Read more
Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more
Real Estate Dictionary. Dictionary of Real Estate Terms. Copyright © 2004 by Barron's Educational Series, Inc. All rights reserved.  Read more
Thesaurus. Roget's II: The New Thesaurus, Third Edition by the Editors of the American Heritage® Dictionary Copyright © 1995 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.  Read more
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Columbia Encyclopedia. The Columbia Electronic Encyclopedia, Sixth Edition Copyright © 2003, Columbia University Press. Licensed from Columbia University Press. All rights reserved. www.cc.columbia.edu/cu/cup/  Read more
Law Dictionary. Law Dictionary. Copyright © 2003 by Barron's Educational Series, Inc. All rights reserved.  Read more
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