What is Loan? Explain Loan, Define Loan, Meaning

 What is Loan? Explain Loan, Define Loan, Meaning of Loan in finance alone as the lending of money by one or more individuals organizations or other entities to other individuals organizations etc the recipient incurs a debt and is usually liable to pay interest on that debt until it is repaid and also to repay the principal amount borrowed the document evidencing the debt eg a promissory note will normally specify among other things the principal amount of money borrowed the interest rate the lender is charging and date of repayment a loan entails the reallocation of the subject asset for a period of time between the lender and the borrower the interest provides an incentive for the lender to engage in the loan in a legal loan each of these obligations and restrictions is enforced by contract which can also place the borrower under additional restrictions known as loan covenants although this article focuses on monetary loans in practice any material object might be Lent acting as a provider of loans as one of the main activities of financial institutions such as banks and credit card companies for other institutions issuing of debt contracts such as bonds as a typical source of funding