loan definition

An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk).

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Related Terms

asset conversion loan, balloon loan, bank term loan, bridge loan, broker loan, callable loan, character loan, classified loan, conforming loan, consolidation loan, day loan, demand loan, discount loan, evergreen loan, FHA loan, floor loan, hang out loan, indexed loan, interest-only loan, non-conforming loan, note loan, partially amortized loan, participation loan, piggyback loan, policy loan, purpose loan, recourse loan, securities loan, security loan, single-payment loan, soft loan, unsecured loan, wraparound loan, installment loan, loan-to-cost, loan-to-value, predatory lending, secured loan, loan stock

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arrangement
Definition

Private or court-mediated agreement between a debtor and unsecured creditors, under which the creditors agree to settle for a certain fraction of monies owed by the debtor. When it is a voluntary agreement, it is called scheme of arrangement and is governed by the ordinary law of contract, otherwise (if the debtor is insolvent) it is a deed of arrangement which is governed by the relevant statute. The primary objective of an arrangement is avoidance of bankruptcy. See also letter of lenienency.

lender
Definition

A private, public or institutional entity which makes funds available to others to borrow.

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Related Terms

marginal lender, loan, mortgage, commitment fee, origination fee, credit, covenant, Equal Credit Opportunity Act, installment, interest, mortgagee, factor, pawn broker, collateral, satisfaction of debt, Truth in Lending

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Credit Mistakes
Your credit report may have errors on it, and this can hurt your ability to borrow. That's why it's important to check your credit reports periodically and get errors resolved. Here we describe the best procedure to follow to make sure you're protected so that errors don't hurt you. We also list the contact information of the three large credit reporting agencies: Experian, Equifax, and Trans Union.

Credit Card Debt

Many people find themselves wasting money each and every month on high credit card interest rates. This article tells you how to avoid getting into credit card debt, and if you do, the best way to escape it Credit Fraud
Credit fraud is an increasingly serious problem, growing almost threefold in the past five years. Are you protected and do you know what to do if this happens to you? This article includes steps to prevent credit fraud, and how to deal with it if it doesoccur.

money
Definition


Legal tender, cash.

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Related Terms

active money, at the money, barren money, close to the money, deep in the money, deep out of the money, earnest money, fiat money, front money, in the money, lawful money, near money, out of the money, smart money

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