LOAN AND ITS TYPES

In finance, loan is an obligation proved by a note that indicates, in addition to everything else, interest rate, date of payment and the principal amount. A loan involves the reallocation of subject asset(s) for particular period of time among the borrower and money lender. In this the borrower at first borrows or receives an amount of cash called the principal amount from the moneylender, and is committed to pay back at defined time or repay an equivalent measure of cash to lender at later time. Typically cash is paid back as a means of partial repayments or regular installments; in an annuity,... [...]
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