Loan
What does it mean
A Loan is an agreement between a borrower and a creditor where the borrower, in exchange for receiving money agrees to repay the money over time with interest.
Why does it matter
If you're reading this page, you likely work at a bank; so the importance of understanding what a loan is should be obvious :). Loans are the basis of the business of banking. These agreements form the basis of a bank's revenue.
From an underwriting perspective, when factoring a loan into your analysis, it is important to identify variables such as loan amount, interest rate, amortization, payment, and payment frequency.
Other Relevant Terms
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A bit about me
Greetings! I'm Clay Sharkey, and there is nothing I like more than assisting others in achieving their goals. I firmly believe that by enhancing a banker's understanding of their customer's' business, they can provide superior service. This superior service, in turn, leads to stronger relationships for the bank, improved performance for the businesses, and better experiences for our communities. Win-win-win.
