Glossary Of Debt Management & Financial Terms
Loan
A sum of money lent, usually subject to interest.
A sum of money lent to an individual or business. This can take the form of an unsecured, or secured loan, where an unsecured loan does not have an attachment to any assets, but a secured loan does have an attachment to an asset (e.g. car hire purchase, a mortgage, or second charge loans on properties). Interest is usually applied to a loan over the coarse of the repayment term, so more is paid back in total.
