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Finance & Banking vocabulary · Loans & Credit

Loan

Meaning in finance & banking, with examples

/loʊn/nounCore term

In finance & banking, loan means: Money that a bank or another lender gives to a person or company, which must be paid back over time, usually with interest.

In Turkish: kredi, borç, ödünç para

How it is used

The basic product of lending. You apply for a loan, take out a loan and repay it. Banks speak of personal loans, car loans, business loans and the loan book (all the loans a bank holds).

Example sentences

  1. The customer applied for a 36-month personal loan to renovate her kitchen.

  2. Our loan book grew by 12 percent this year, mostly in SME lending.

Common collocations

  • apply for a loan
  • approve a loan
  • repay a loan
  • personal loan
  • loan agreement
  • take out a loanTo borrow money from a bank or another lender under an agreement to repay it over time.
  • borrowerA person or organisation that receives money from a lender and agrees to pay it back, usually with interest.
  • lenderA bank, company or person that gives money to a borrower, expecting it to be paid back with interest.
  • principalThe original amount of money borrowed or invested, not including interest. Each loan payment usually covers some interest and some principal.
  • collateralAn asset, such as property, cash or securities, that a borrower pledges to a lender and that the lender can sell if the loan is not repaid.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.