By Team Development

Loan is a kind of a debt that a banking/financial organization lends to a borrower for his personal or professional reasons. Initially the money isn’t directly handed over to the borrower, rather like every other debt instruments some security is provided against the amount borrowed. This particular amount is then repaid in forms of installments, not necessarily of the same size though. For this particular service the bank does charge a fee termed interest on the amount borrowed. On legal terms a loan is a contractual promise of a debtor to repay a sum of money in exchange for the promise of a creditor to give another sum of money. read more »