Loan
From Wikipedia, the free encyclopedia
This is an old revision of this page, as edited by Bhadani (Talk | contribs) at 16:18, 15 February 2008. It may differ significantly from the current revision.
Revision as of 16:18, 15 February 2008 by Bhadani (Talk | contribs)
(diff) ? Older revision | current version (diff) | Newer revision ? (diff)
This article needs additional citations for verification.
Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (October 2007)
For other uses, see Loan (disambiguation).
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.
Error Occurred While Processing Request
The web site you are accessing has experienced an unexpected error.
Please contact the website administrator.
The following information is meant for the website developer for debugging purposes.
Error Occurred While Processing Request
The element at position 548, of dimension 1, of an array object used as part of an expression, cannot be found.
Resources:
Enable Robust Exception Information to provide greater detail about the source of errors. In the Administrator, click Debugging & Logging > Debugging Settings, and select the Robust Exception Information option.
