LOANS Meaning and
Definition
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Loans are monetary transactions where an individual or an entity borrows a specific amount of money—known as a principal—from a lender. These transactions are subject to an agreed-upon interest rate, which serves as compensation for the lender/investor along with the risks associated with lending money. In a loan agreement, the borrower is obligated to repay the principal amount, usually in installments, within a predetermined time frame. Loans may be secured or unsecured, depending on whether collateral is provided by the borrower.
Secured loans are backed by assets, such as real estate or a vehicle, which can be seized by the lender if the borrower fails to fulfill the repayment obligations. Unsecured loans, on the other hand, do not have any collateral associated with them, making them riskier for lenders. Due to this higher risk, unsecured loans often come with higher interest rates.
Loans serve various purposes, including financing personal expenses, funding education, starting or expanding a business, purchasing assets, or consolidating existing debts. They play a crucial role in providing individuals, businesses, and governments with the necessary financial resources to accomplish their goals when their own capital or revenue is insufficient.
Lending institutions, such as banks, credit unions, and online lenders, are the primary sources of loans. They assess the borrower's creditworthiness, income stability, existing debts, and other factors to determine the loan amount, interest rate, and terms. Loans contribute not only to economic growth but also to individual financial stability when used responsibly and managed effectively.
Top Common Misspellings for LOANS *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for LOANS
Etymology of LOANS
The word "loans" originated from the Old Norse word "lán", which originally meant "a lending". In Old English, "lán" transformed into "lǣn", maintaining the same meaning. Over time, the spelling and pronunciation changed, and the word eventually evolved into "loan" in Middle English. "Loans" is the plural form of "loan", which refers to the act of lending money or property under an agreement to return it in the future.
Similar spelling words for LOANS
- lounge,
- Lomax,
- Lones,
- lonas,
- lohnes,
- loyang,
- longo,
- moans,
- long,
- learns,
- LOOMIS,
- LOMAS,
- loads,
- lowness,
- loan,
- loafs,
- longyi,
- Longway,
- leans,
- lens,
- loins,
- Lonzo,
- Longe.
Conjugate verb Loans
CONDITIONAL
I
would loan
we
would loan
you
would loan
he/she/it
would loan
they
would loan
FUTURE
I
will loan
we
will loan
you
will loan
he/she/it
will loan
they
will loan
FUTURE PERFECT
I
will have loaned
we
will have loaned
you
will have loaned
he/she/it
will have loaned
they
will have loaned
PAST
I
loaned
we
loaned
you
loaned
he/she/it
loaned
they
loaned
PAST PERFECT
I
had loaned
we
had loaned
you
had loaned
he/she/it
had loaned
they
had loaned
PRESENT
I
loan
we
loan
you
loan
he/she/it
loans
they
loan
PRESENT PERFECT
I
have loaned
we
have loaned
you
have loaned
he/she/it
has loaned
they
have loaned
I
am loaning
we
are loaning
you
are loaning
he/she/it
is loaning
they
are loaning
I
was loaning
we
were loaning
you
were loaning
he/she/it
was loaning
they
were loaning
I
will be loaning
we
will be loaning
you
will be loaning
he/she/it
will be loaning
they
will be loaning
I
have been loaning
we
have been loaning
you
have been loaning
he/she/it
has been loaning
they
have been loaning
I
had been loaning
we
had been loaning
you
had been loaning
he/she/it
had been loaning
they
had been loaning
I
will have been loaning
we
will have been loaning
you
will have been loaning
he/she/it
will have been loaning
they
will have been loaning
I
would have loaned
we
would have loaned
you
would have loaned
he/she/it
would have loaned
they
would have loaned
I
would be loaning
we
would be loaning
you
would be loaning
he/she/it
would be loaning
they
would be loaning
I
would have been loaning
we
would have been loaning
you
would have been loaning
he/she/it
would have been loaning
they
would have been loaning
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