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Loan

From the Simple English Wikipedia, the free encyclopedia that anyone can change

This article focuses on monetary loans.

A loan is a type of debt. The borrower needs to repay the lender the sum of money loaned part by part over time in order to clear the debt.

Acting as a provider of loans is one of the main tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a main source of funding. Bank loans and credit are one way to increase the money supply.


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