Concept in Definition ABC

If a person temporarily leaves something to another person to be used, he is making a loan. In this way, among friends, colleagues and neighbors the loan of objects is common. The idea of ​​loan also refers to money and, in this sense, someone can request a Bank an amount of money (properly the loan) for some purpose and in return the bank will charge interest.

Variants of the term

The person requesting a loan from a bank is the borrower, who must return the capital plus interest. The entity or person that lends the money is the lender. In any case, the borrower and the lender agree on how the money should be returned (interest, term, possible penalties, etc.).

Lender is another of the words of the same family. A lender is someone who is dedicated to lending money to others and usually usually charges more interest than a bank. The word lender has a connotation pejorative, since sometimes the people who engage in this activity impose very demanding conditions on the borrower and some of them act outside the law.

Different ways of understanding a loan and the consumer's point of view

In banking terminology there are several ways of understanding a loan. There are pre-granted loans (amount of money that banks make available to some of their clients so that they can use it as they want). There is also the personal loan, the mortgage, the participative loan, the one intended for consumption or to university studies.

It should be noted that the loan is not the same as the credit. The first is an operation financial in which a fixed amount of money is delivered that must be returned according to the agreed interest, while the credit is an amount of money that a bank makes available to a client and he uses a part of that money and on the amount he uses he pays certain interest.

From the point of view of a person applying for a loan, it is important to have good information, know the expenses and commissions and compare the conditions of one entity and another. A tool very useful is the loan simulator.

The linguistic loan

Language loans are those words from one language that are borrowed from another language. There are many examples of this linguistic phenomenon in the Spanish language (The words potato, cacique, tobacco, pumpkin, canoe or gum are words originally from indigenous America and were incorporated into Spanish after the conquest of America).

Photos: iStock - cnythzl / loops7