Study offers new perspective on 2008 housing crash

It's been 15 years since the 2008 housing bubble burst and sent the American economy into a tailspin, but pundits and academics are still trying to get a full picture of what caused the housing crash.

Biden's student loan plan: What we know (and what we don't)

President Joe Biden said Wednesday that many Americans can have up to $10,000 in federal student loan debt forgiven. That amount increases to $20,000 if they went to college on Pell grants. Here's what we know so far and ...

Aging dams could soon benefit from $7B federal loan program

Eight years after Congress created the program, the U.S. Army Corps of Engineers is taking a first step toward offering more than $7 billion of federally backed loans to repair aging dams owned by states, local governments ...

California marijuana growers can't take much to the bank

Legalization of marijuana in California has helped some financial institutions in the state increase their assets at the same time many banks, feeling stifled by federal regulations, deny services to licensed growers, manufacturers ...

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Loan

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.

This text uses material from Wikipedia, licensed under CC BY-SA