Loan

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the and the .

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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.

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Acting as a provider of loans is one of the principal task for financial institutions. For banks loans are generally funded by deposits.

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For other institutions issuing of debt contracts, such as bonds is a typical source of funding.

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Other types of debt include mortgages, credit card debt, bonds, and lines of credit. A mortgage 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 bank, however, is given the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank can repossess the house and sell it, to get their money back.

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The abuse in the granting of loans is known as predatory lending.

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It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over him or her.

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Debt: Debt is that which is owed. A person or company owing debt is called a debtor. An entity to whom debt is owed is called a creditor. Debt is used to borrow purchasing power from the future. Companies use debt as a part of their overall corporate finance strategy....

Asset: In business and accounting an asset is anything owned which can produce future economic benefit, whether in possession or by right to take possession, by a person or a group acting together, e.g. a company, the measurement of which can be expressed in monetary terms. Asset is listed on the balance ...

Money: Money is any marketable good or token used by a society as a store of value, a medium of exchange, and a unit of account. Since the needs arise naturally, societies organically create a money object when none exists. In other cases, a central authority creates a money object; this is more frequently...

Loan related Images and Photos (experimental)

6th War Loan	Poster for the Second Loan for National Defence	Poster for the Loan for National Defence from the Societe Generale 1918	Tennessee Memphis a Giant Panda on Loan to the Local Zoo Enjoys a Snack of Bamboo Shoots
How to Make It in America 'Investment - Loan' T-Shirt	Buy the 5-1/2% Military Loan	"Remember Belgium: Buy Bonds Fourth Liberty Loan" 1918	"For Home and Country: Victory Liberty Loan" 1918
Over the Top for You Third Liberty Loan	"Sure! We'll Finish the Job: Victory Liberty Loan" 1919	They Kept the Sea Lanes Open Invest in the Liberty Loan