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From Nordan Symposia
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[[File:lighterstill.jpg]][[File:Loans.jpg|right|frame]]
==Origin==
Middle English lon, from Old Norse lān; akin to Old English lǣn loan, lēon to lend, Latin linquere to leave, Greek leipein
*[http://en.wikipedia.org/wiki/12th_century 12th Century]
==Definitions==
*1a : [[money]] lent at interest
:b : something lent usually for the borrower's temporary use
*2a : the grant of temporary use
:b : the temporary [[duty]] of a person transferred to another job for a [[limited]] [[time]]
==Description==
In [[finance]], a '''loan''' is a [[debt]] provided by one entity ([[organization]] or [[individual]]) to another entity at an interest rate, and evidenced by a note which specifies, among other things, the principal amount, [https://en.wikipedia.org/wiki/Interest_rate interest rate], and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of [[time]], between the [https://en.wiktionary.org/wiki/lender lender] and the [https://en.wiktionary.org/wiki/borrower borrower].
In a loan, the borrower initially [[receives]] or ''borrows'' an amount of [[money]], called the ''principal'', from the lender, and is obligated to ''pay back'' or repay an equal amount of money to the lender at a later time.
The loan is generally provided at a cost, referred to as interest on the [[debt]], which provides an [[incentive]] for the lender to engage in the loan. In a legal loan, each of these [[obligations]] and restrictions is enforced by [[contract]], which can also place the borrower under additional restrictions known as [https://en.wikipedia.org/wiki/Loan_covenant loan covenants]. Although this article [[focuses]] on monetary loans, in practice any material object might be lent.
Acting as a provider of loans is one of the principal tasks for [https://en.wikipedia.org/wiki/Financial_institution financial institutions]. For other institutions, issuing of debt contracts such as [https://en.wikipedia.org/wiki/Bond_(finance) bonds] is a typical source of funding. [https://en.wikipedia.org/wiki/Loan]
[[Category: Economics]]
==Origin==
Middle English lon, from Old Norse lān; akin to Old English lǣn loan, lēon to lend, Latin linquere to leave, Greek leipein
*[http://en.wikipedia.org/wiki/12th_century 12th Century]
==Definitions==
*1a : [[money]] lent at interest
:b : something lent usually for the borrower's temporary use
*2a : the grant of temporary use
:b : the temporary [[duty]] of a person transferred to another job for a [[limited]] [[time]]
==Description==
In [[finance]], a '''loan''' is a [[debt]] provided by one entity ([[organization]] or [[individual]]) to another entity at an interest rate, and evidenced by a note which specifies, among other things, the principal amount, [https://en.wikipedia.org/wiki/Interest_rate interest rate], and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of [[time]], between the [https://en.wiktionary.org/wiki/lender lender] and the [https://en.wiktionary.org/wiki/borrower borrower].
In a loan, the borrower initially [[receives]] or ''borrows'' an amount of [[money]], called the ''principal'', from the lender, and is obligated to ''pay back'' or repay an equal amount of money to the lender at a later time.
The loan is generally provided at a cost, referred to as interest on the [[debt]], which provides an [[incentive]] for the lender to engage in the loan. In a legal loan, each of these [[obligations]] and restrictions is enforced by [[contract]], which can also place the borrower under additional restrictions known as [https://en.wikipedia.org/wiki/Loan_covenant loan covenants]. Although this article [[focuses]] on monetary loans, in practice any material object might be lent.
Acting as a provider of loans is one of the principal tasks for [https://en.wikipedia.org/wiki/Financial_institution financial institutions]. For other institutions, issuing of debt contracts such as [https://en.wikipedia.org/wiki/Bond_(finance) bonds] is a typical source of funding. [https://en.wikipedia.org/wiki/Loan]
[[Category: Economics]]
