In finance, a loan is the lending of money from one individual, organization or entity to another individual, organization or entity. A loan is a debt provided by an entity (organization or individual) to another entity at an interest rate, and evidenced by a promissory notewhich specifies, 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(s) for a period of time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time.
The loan is generally provided at a cost, referred to as interest on the debt, which 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.
Its very easy and simple to type in Gujarati (Gujarati Typing) using English. Just type the text in English in the given box and press space, it will convert the text in Gujarati script. Click on a word to see more options. To switch between Gujarati and English use ctrl + g. Now copy the text and use it anywhere on emails, chat, facebook, twitter or any website.
Its very easy and simple to type in Gujarati (Gujarati Typing) using English. Just type the text in English in the given box and press space, it will convert the text in Gujarati script. Click on a word to see more options. To switch between Gujarati and English use ctrl + g. Now copy the text and use it anywhere on emails, chat, facebook, twitter or any website.