What is a loan?
A loan is the the temporary provision of money (usually at interest). It is derived from the following meanings:
- lend: give temporarily; let have for a limited time; “I will lend you my car”; “loan me some money”
- loanword: a word borrowed from another language; e.g. `blitz’ is a German word borrowed into modern English
Definition of loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time. 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.
But a loan can also be
A loan which is technically in default but under which the lender (mortgagee) is attempting to assist the borrower (mortgagor) in restructuring the terms of the loan or the time of repayment rather than proceeding with foreclosure.