A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over 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. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount. 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.
Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.
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Emergency Cash Loans
Getting a Good Emergency Cash Loan
By Justin Pritchard, About.com
Emergency cash can come from a variety of places. Ideally, you’ve got an emergency fund built up. If not, you may need an emergency cash loan. This page covers emergency cash loans, and the best places to find them.
A Little Help From Your Friends
Before going into debt for an emergency cash loan, consider talking with your network of friends and family. If you’ve suffered a hardship, they may be willing to help. Of course, don’t be offended if you don’t get any money from them – giving you a loan may be more risk than they can afford to take. Remember, they could end up with their own emergencies any day.
