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Loans
Definition of Loans: a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower
Synonyms of Loans: Borrow Money

Acting as a provider of loans is one of the principal task for financial institutions. For banks loans are generally funded by deposits. For other institutions issuing of debt contracts, such as bonds is a typical source of funding. Other types of debt include mortgages, credit card debt, bonds, and lines of credit. A mortgage is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The bank, however, is given the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank can reposess the house and sell it, to get their money back.


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This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "General Loans ."
 
 
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