Meaning of a loan.

[Ephy]

A loan can be referred to as money borrowed from a person, bank or organisation that is expected to be paid back mostly with interest. Loaning can be a very good investment or business with good profits but not everyone deserves to get a loan some don't pat back and some do delay in payments. Therefore before one is given a loan must meet some requirements and submit relevant information about himself or herself.

Some lenders even give their loans but you must assure them a property that if sold it can be able to raise the amount of money you have to pay, for example some loans you give them a logbook or a car or tittle deed.

There are also rules concerning anyone who refuses or delays to pay a loan. Those who delay normal pay the loan, loan interest plus loan penalties. For those who don't pay some are forced to give their properties by force and also they are kept in CRB and they'll not be able to get a loan again this mostly applies with banks.

 

[Abigael]

You have given a very good discription of what a loan means. Indeed a loan is taken with a view to be returned mostly with some interest. Most people are known for not paying back the loans and that is why there are strict rules governing the giving of loans. Most loan lenders will not give you loans if you a bad credit score with them or with other loan lenders. Then the issue of your interests adding up when you don't pay a loan makes many people fear not paying back loans on time.