Loan: An advance of money from a lender to a borrower over a period of time. The borrower is obliged to repay the loan either at intervals during or at the end of the loan period together with interest.

 

Related Words

Loan: An advance of money from a lender to a borrower over a period of time. The borrower is obliged to repay the loan either at intervals during or at the end of the loan period together with interest.

Interest-Only Loan: A loan in which payment of principal is deferred and interest payments are the only current obligation.

Loan Documents: Documents prepared by a lender in conjunction with granting the loan to the borrower, may include a promissory note, deed of trust, and required loan disclosure documents.

Back-To-Back Loan: A loan in which two companies in separate countries borrow each other's currency for a specific time period and repay the other's currency at an agreed-upon maturity.

Inventory Loan: A secured short-term loan to purchase inventory. The three basic forms are a blanket inventory lien, a trust receipt, and field warehousing financing.

Loan Correspondent: A person or entity that acts for a lender in arranging loans or the sale of loans.

Revolving Loan Program: A program that uses the repayments of existing loans to make additional loans to qualified borrowers. Initial capitalization of a revolving loan fund may be derived from federal appropriatio . . . View Full Definition

Recourse Loan Program: Under the FAIR Act of 1996, recourse loans are available to producers of high moisture corn and seed cotton, dairy processors, and sugar processors. The commodity is pledged as security, but . . . View Full Definition

Bi-Weekly Mortgage Loan: A mortgage loan on which interest and principal payments are made every half-month (total of 26 payments) as opposed to monthly payments. This results in earlier loan retirement.

Loan Constant: The annual payment required per dollar of a mortgage loan, including principal and interest.