Business terms and jargon explained. Your business dictionary

What is Loan

This is when a sum of money is given to and will need to be paid back. There is normally interest to be paid back in addition to the loan. E.g. company A loans 100K to company B with 10% interest charged. Company B will have to pay back 110K back to company A. (100K + 10K interest)

The loan can be paid back in instalment or a lump sum depending on what has been arranged. If the loan was for one year either
1) The 110K is payable after the one year has expired or
2) There is 12 instalments of 9,166.

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Term created / updated 2005-07-16 23:12:15

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