Loan. What does it mean .Posted by Nick Niesen on November 8th, 2010 Loan called the convention that one of the parties (lender) transfers to another (debtor) the ownership of things (cash or securities usually) and the debtor has the obligation to repay the things of the same quality and quantity of paying or not interest on the loan. The loan taken by the debtor to cover needs that can not meet with current revenue. Also, the loan is a form of capital by companies for the expansion of their business. We also have with interest,interest-free and fixed interest loans. A great type of loan is the debenture. The company that wants to enter into a debenture loan divide the amount of money want to borrow in equal parts or unevenly and issue securities and bonds are asked whose nominal value is equal to the value of those units. Then the company delivers bonds to seeking (lenders), after payment of a sum of money from them, which corresponds to the value of bonds. Like it? Share it!More by this author |