a loan is the amount of money that is borrowed from a lender. This can be used for various purposes such as purchasing a house, car, or funding a business venture. The loan typically comes with an agreement to repay the borrowed amount over a specified period of time, along with interest and any additional fees. The terms and conditions of the loan, including the interest rate and repayment schedule, are determined by the lender and agreed upon by the borrower.
No, lenders must comply with usury laws that set limits on the maximum interest rate they can charge.
A secured loan is backed by collateral, such as a house or car, while an unsecured loan does not require any collateral.
If you default on a secured loan, the lender may have the right to repossess the collateral. However, they must follow specific legal procedures.
Generally, lenders cannot change the terms of a loan agreement without the borrower’s consent. Any changes should be agreed upon in writing.
Yes, if you fail to repay a loan, the lender may take legal action against you to recover the outstanding amount.
In some cases, if a lender obtains a judgment against you, they may be able to garnish your wages to collect on the loan.
Depending on the type of loan, you may have a certain period, known as a “cooling-off” period, during which you can cancel the loan agreement without penalty.
No, lenders are prohibited from discriminating against borrowers based on protected characteristics under various anti-discrimination laws.
Some loans may have prepayment penalties, which are fees charged for paying off the loan before the agreed-upon term. Check your loan agreement for details.
Yes, if you default on a loan, the lender may take legal action to recover the outstanding amount, which may include filing a lawsuit against you.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 13th April 2024.
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