loans as you lent money form your friend or any one you know.
A loan is a type of debt. All material things can be lent but this article focuses exclusively on monetary loans.
Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.
occupation: the principal activity in your life that you do to earn money.
The borrower initially receives an amount of money from the lender, which they
pay back, usually but not always in regular
installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt.
Loans are money that the company owes. Like assets, they can be short or long
term, based on when they will be paid off.
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. Bank
loans and credit are one way to increase the money supply.
