Loan

(redirected from Loanable)
Also found in: Dictionary, Thesaurus, Legal, Financial.

loan,

in business, sum of money borrowed at a particular interest rate. More generally, it refers to anything given on condition of its return or repayment of its equivalent. A loan may be acknowledged by a bond, a promissory note, or a mere oral promise to repay. Because of biblical injunctions against usury, the early Christian church forbade the taking of interest. In feudal European society, loans were little needed by the great mass of relatively self-sufficient and noncommercial peasants and serfs, but kings, nobles, and ecclesiastics were heavy borrowers for personal expenditures. Merchants and other townsmen, especially the Jews, were the moneylenders, and various devices were found for circumventing the prohibition of usury. With the rise of a commercial society, restrictions on the taking of interest were gradually relaxed. Today, banks and finance companies make most loans, usually on collateralcollateral
, something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although the latter may also be accepted as such.
..... Click the link for more information.
, such as stocks, personal effects, and mortgages on land and other property, or on assignments of wages. Credit unionscredit union,
cooperative, not-for-profit financial institution that makes low-interest personal loans to its members. It is usually composed of persons from the same occupational group or the same local community or institution.
..... Click the link for more information.
 have attained some importance in making personal loans at relatively low interest rates, and microcredit programs and organizations, which offer small-scale loans, have proved useful, particularly in developing countries, in helping individuals to establish small businesses. The 21st cent. has seen the rise of so-called peer-to-peer lending, in which companies use the Internet to match lenders with borrowers. Focusing on smaller personal and business loans, peer-to-peer lending has developed in part because investors faced lower interest rates on bonds and money-market funds in the aftermath of the recession of 2007–9. A pawnbrokerpawnbroker,
one who makes loans on personal effects that are left as security. The practice of pawnbroking is ancient, as is recognition of the danger it involves of oppressing the poor.
..... Click the link for more information.
 lends money on the security of articles left in his shop.

Loan

 

in civil law, a contract by which one party (the lender) transfers to the ownership of another party (the borrower) or to his management money or articles defined by generic characteristics, such as number, weight, measure (for example, grain), and the borrower undertakes to return the same amount of money or an equal quantity of articles of the same kind and quality. Loan contracts belong to the category of so-called real (the rights and obligations of the parties under such contract arise only from Jhe moment of the transfer of the loan) and unilateral contracts (the lender has the right to demand the return of the loaned property and does not carry any obligations, whereas the borrower is obliged to return the property and has no rights whatsoever). Under Soviet legislation, loan contracts are to be gratuitous, and the collection of interest is allowed only in cases prescribed by the legislation of the USSR and in the loan operations of public mutual aid funds and municipal pawnshops. A contract for an amount greater than 50 rubles must be concluded in writing.


Loan

 

(Russian, ssuda), a type of loan (zaem) in specie or in kind. The State Bank of the USSR (Gosbank) and other banks of the USSR, by paying out specific, fixed-term sums of money, extend credit to state organizations, collective farms and other cooperatives, and public organizations (see and CREDIT). Banks, public mutual-help offices, pawnbrokers, and the funds of associations of creative workers make loans in money to individual citizens, according to set regulations.

References in periodicals archive ?
In the loanable funds model of Roger Garrison (2001) there is only one market for loanable funds.
Because households cannot immediately adjust their nominal savings, a monetary shock disproportionately affects banks reserves and, hence, the supply of loanable funds.
To summarize, the period from mid-August to mid-October 1998 was characterized by rapid declines in stock values, rapid increases in uncertainty, and a reluctance of institutions with loanable funds to provide loans.
This is because deposits are an important marginal source of funds for meeting loan demand, and higher deposit rates are necessary to attract additional loanable funds.
Intrasweep also announced the launch of Demand Deposit Marketplace(SM) (DDM), a marketplace that enables banks to acquire stable deposits to increase loanable funds, send deposits off their balance sheet to generate income, and exchange reciprocal deposits with other banks to maximize their customers' FDIC insurance coverage without decreasing their deposit base.
Recognizing that the Keynesian model has largely captured the imagination of the economics profession and been integrated with classical economics into what Paul Samuelson calls the "neo-classical synthesis," Garrison brilliantly created a series of diagrams to demonstrate the relationship between the time structure of production, Hayekian triangles, and standard "neo-classical" models, including the production-possibility frontier, the loanable funds market, the IS--LM curve, and the Keynesian consumption function (Garrison 2001).
In April, the LBP s monetary board endorsed the city government s application for the project s financing at a maximum loanable amount of P560 million.
To demonstrate, Figure 3 combines the NPV diagram and the loanable funds diagram.
In three countries, Romania, Poland, and Hungary, this ratio exceeds 100% indicating that the household sector is a net borrower of loanable funds so that primary deposits are fully exhausted in funding retail lending.
He bases this on Loanable Funds theory and observations of Samuelson on Discplacing private capital by government debt.
A free market would comprise private suppliers and demanders of loanable funds, and the prevailing market rate of interest would be that at which the amount demanders want to borrow equals the amount suppliers want to lend.
These poorly chosen public policies distorted interest rates and asset prices, diverted loanable funds into the wrong investments, and twisted normally robust financial institutions into unsustainable positions.