What Is A Loan?


10 Answers

Shane Richardson Profile
A loan is where a person (called the borrower) borrows a sum of money of variable amount form another person (called the lender).  It is in effect a type of debt as whatever amount you borrow from the lender you have to pay back usually in regular monthly instalments over a given period of time, anywhere from one to 25 years. 

Loans are used for various reasons, such as to buy a car, home improvements, to go on holiday or debt consolidation in order to pay off existing debts.

Most people who want a loan go to a bank or building society, but there are loans available online as well.  The loans that are to be found online are for people with a less than perfect credit rating and who stand little chance of getting a loan through the usual avenue of a bank or building society.  They are usually for a small amount and come with a very high interest rate and a shorter repayment period.

In order to apply for a loan you must be over 18 years of age, have a bank account and be employed, especially so if you want a loan from a bank or building society.

Loans can be secured or unsecured. A secured loan needs a certain amount of collateral up front whereas an unsecured loan does not.

No matter where your loan comes from it will have a certain amount of interest attached to it so you will end up paying back more money than you borrowed originally. 

Unsecured loans usually have a higher interest than secured loans.

The amount of interest can affect the amount of your repayments so it is important to check them out carefully. With a fixed rate loan your repayments will remain the same every month for the life of the loan. With a variable rate loan your payments will go up and/or down depending on what interests rate do in general. If they go up, so will your payments and likewise should they go down.

It is important that the borrower looks carefully at the loans available and to pick one that suits their individual circumstances as far as amount, interest rates and repayments are concerned before committing themselves.
Muddassar Memon Profile
Muddassar Memon answered
A loan basically is a kind of debt. All types of material articles can be loaned out. Like every debt instrument, a loan involves the redistribution of fiscal assets over a fixed period of time, involving the lender and the borrower.

In the beginning the borrower gets a particular quantity of money from the lender, which they need to repay back, generally but not always in standard installments, to the lender. This service is normally given at a particular cost, which is known as interested charged on debt.

Acting as a source of loans is one of the main tasks for financial organizations. Where as for other organizations, allocation of debt contracts like bonds is a fundamental source of money, and bank loans along with credit are one particular way to increase the money supply.
thanked the writer.
Funding Easily
Funding Easily commented
Excellent answer to a question most would not ask, however for those who genuinely want to know have the perfect answer here.
Laura Schmid Profile
Laura Schmid answered

Loan is a term used to coin a thing that is borrowed. This is usually in a sum of money borrowed from a money lender or a licensed money lender. Though this is to be repaid with interest. Hope this helps.

Karl Sagan Profile
Karl Sagan answered

A loan is the receipt of money from a third-party company (Bank or other credit institution) at interest. It seems to me that sometimes loans save people from difficult life situations. A month ago I asked zenith quicken loans for help. Honestly, I didn't think it was that convenient. It helped me to solve all financial issues and I quickly closed the debt.

Meg Thomas Profile
Meg Thomas answered

This is something like a credit service. In fact, if you are looking for a way to accomplish this, then I know one pretty good company that can help you. This company is called webmoneyloans. In my opinion, this is your best choice, so try

carlos Striker Profile
carlos Striker answered

It is something given to you temporarily for your use which to be returned with appreciation at certain given time?

Chips Ters Profile
Chips Ters answered

If you really want to make your little dream come true and you don’t have the finances to do this, then green bay loans can help you, this is a very advantageous offer, it helped me a lot

Matilda Kunher Profile
Matilda Kunher answered

Hi! I agree with the answers above. A loan is where a person (called the borrower) borrows a sum of money of variable amount form another person (called the lender). Hi! I agree with the answers above payday loans online in South Carolina. I took out a loan online. This is very convenient. I left a request on the site and the next day received feedback that I can get my money to the card. I am very happy that I live in a world where there is modern technology. This case makes my life a lot easier. I used to stand in a long line at the Bank. It is very long and painful. Now I can get a loan from the comfort of my home. This is cool! Do you agree with me?

Iryna Che Profile
Iryna Che answered

An online loan makes it possible to quickly solve complex everyday situations, for the elimination of which an urgent investment of a certain amount of money is necessary.  Online loans are analogous to a bank loan.  To receive money, it is enough to place an application on the website  If the application is approved, the amount is transferred to a bank card, which is very convenient.

Anonymous Profile
Anonymous answered
Where do I go to to apply for a payday loan so I get it loaded on my pre paid debit card...until pay day I have direct desposit

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