Loan Definition - What it is, Meaning and Concept

Latin is the source of origin to find the etymological origin of the term loan that now occupies us. In particular, we can emphasize that it emanates from the word praestarium which is the result of the union of three clearly differentiated parts: the prefix prae that can be defined as "before", the verb stare that is synonymous with "standing", and finally the suffix - arium that can be translated as "belonging".

A loan is the action and effect of lending , a verb that refers to giving something to another person , who must return it in the future. The lender grants one thing so that whoever receives the loan can use it in a period of time. Once that term has expired, you must return the loaned item.

In this sense, it would be necessary to make clear the existence of what is known as a loan house. This is a space where people who need money urgently come with the clear objective of providing them there the amount they need with the consideration of pledging all kinds of valuable items they own such as jewelry, real estate or clothing.

At a financial level, the loan or credit is money that is requested from a bank or similar entity . At the time of returning the loan, it must be done, usually, paying interest. That is to say: if a person requests a loan of $ 1,000 from a bank and agrees to repay the amount within a year with a 10% interest rate, he must repay $ 1,100 in twelve months.

It should be noted that banks are in a position to reject or deny loan requests made by their clients. These institutions, before granting the loan, request various guarantees that will assure you that you will be able to collect the money once the term of the loan has ended. They are also responsible for studying the financial history of the applicant, to check if they have unpaid debts or other economic problems.

In the same way, we find other types of loans. In particular, there is the loan service that is developed in the various municipal and autonomous libraries of the cities, for example, in Spain. In this case, thanks to it all those neighbors who have their own card have the possibility to take home any of the books or publications that exist in these cultural centers to enjoy them for a period of approximately one month and then will return to said spaces.

Also in the case of sport the loan is produced. Specifically, this takes place when the president of a specific football club that has all the rights of a player allows that figure to play in another team during a certain period of time. It is what is also known as assignment.

Finally, a linguistic loan is an element that one language takes from another. They can be words or morphemes that are adapted with few modifications or, even, without changes. This type of loan is possible when a language has a wide cultural influence in areas where other languages are spoken.

We can distinguish between lexical loans (when the borrowed item is a lexical word, such as a noun, a verb or an adjective) and grammatical loans (in cases where many bilingual speakers combine morphemes and non-lexical elements of the two languages).