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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.
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, 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.
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 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.
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 lends money on the security of articles left in his shop.



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.



(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 ?
With the best personal loan rates below six per cent, it really does pay to take your time researching your finance options to get the cheapest deal available.
A personal loan can also be taken for urgent wedding expenses.
Competitive interest rates: A personal Loan from Bajaj Finserv comes at an affordable and a cheaper interest rates offering a convenience of applying it online.
Upasana Taku, co-founder, MobiKwik said, 'Only 1 percent of Indians have access to credit, this presents a great opportunity for us and we wish to pioneer the space by being able to provide personal loans to the rest of the population.
The Mashreq Majestic 24Hours Personal Loan has been awarded the UAE's Best Personal Loan 2013 Award by Banker Middle East.
Taha told the Gulf News: "The personal loans to individual deposits grew by 83 per cent.
With rising electricity, petrol and food prices, SA Personal Loans offers a much welcome service to South Africans in need.
Summary: In a move to enhance consumer access to finance and boost its loan portfolio, Emirates NBD launches three new variants of its personal loan offering to customers.
Summary: JEDDAH: Prominent Saudi financial and legal experts say the current practice of local banks receiving personal loan repayments directly from the salaries of borrowers is a clear legal aberration that is unacceptable.
Summary: ABU DHABI -- President His Highness Shaikh Khalifa bin Zayed Al Nahyan, has ordered settlement of defaulting personal loans of 6, 830 citizens, worth about Dhs2 billion.

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