Loan

Lending - borrowing.

A loan is an arrangement for lending and borrowing, most commonly of money.

A loan is a borrowing (liability) for the borrower, and an investment (asset) for the lender.

In the commercial context loan arrangements are legally enforceable and normally formalised in a loan agreement.

See also

• Advance
• Assets
• Debt
• Impaired loan
• Liabilities
• Loan agreement
• Loans and receivables
• An introduction to loan finance