Entity: LOAN
A loan is a financial transaction where money, property, or goods are given to another party in exchange for future repayment with interest.
Loan
Etymology
The term 'loan' originated from various sources, including Old Norse 'lán' and Old English 'lǣn', both meaning 'something lent'.
Definition
A loan is a financial transaction where money, property, or goods are given to another party in exchange for future repayment of the loan value amount with interest.
Historical Context
Loans have been a fundamental aspect of economic systems throughout history, enabling individuals and organizations to access capital for various purposes such as investment, consumption, and emergencies.
Cultural Significance
In many cultures, the concept of lending and borrowing is deeply ingrained, reflecting social norms, trust, and financial practices. Loans can impact individuals and societies in significant ways, influencing economic growth and stability.
Related Concepts
- Debt: A loan creates a debt obligation on the borrower to repay the borrowed amount with interest.
- Interest: The additional amount charged by the lender for providing the loan.
See Also
An agreement where one party provides money, property, or goods to another party in exchange for future repayment with interest.