LOAN CAPITAL Meaning and
Definition
-
Loan capital refers to funds or financial resources that are borrowed by an individual, company, or government entity to finance specific projects, operations, or investments. It is a type of funding obtained by borrowing money from various sources such as banks, financial institutions, or other lenders.
Loan capital can be used for a variety of purposes, including expanding a business, purchasing assets, funding research and development, or acquiring property. Unlike equity capital, which involves selling shares of ownership in a company, loan capital is a debt that must be repaid with interest over a specific period of time.
Interest rates charged on loan capital may vary, depending on the borrower's creditworthiness, the length of the loan, and prevailing market rates. The terms and conditions of the loan, such as the repayment schedule and the collateral required, are typically negotiated between the borrower and the lender before the funds are disbursed.
Loan capital serves as a crucial source of financing for both individuals and businesses, enabling them to access the necessary funds without diluting their ownership or control. It provides flexibility in terms of the timing and repayment structure, allowing borrowers to align their financial obligations with their cash flows and investment plans.
In summary, loan capital refers to borrowed funds that are used to finance various endeavors and must be repaid with interest over time. It represents an important form of financial support that facilitates economic growth and development.
Common Misspellings for LOAN CAPITAL
- koan capital
- poan capital
- ooan capital
- lian capital
- lkan capital
- llan capital
- lpan capital
- l0an capital
- l9an capital
- lozn capital
- losn capital
- lown capital
- loqn capital
- loab capital
- loam capital
- loaj capital
- loah capital
- loan xapital
- loan vapital
- loan fapital
Etymology of LOAN CAPITAL
The etymology of the word "loan capital" can be understood by analyzing the origins of its constituent words.
1. Loan: The word "loan" originated from the Middle English word "lone" or "loun", which itself came from the Old Norse word "lān". The Old Norse word further traces back to the Proto-Germanic word "*līnaz", meaning "to lend". The Old Norse influence on the English language occurred due to the Viking invasions and settlements in the British Isles during the medieval period.
2. Capital: The word "capital" derives from the Latin word "capitālis", which means "of the head" or "chief". In Ancient Rome, "caput" was used to refer to the head, but it also came to symbolize one's wealth, property, or assets.
Infographic
Add the infographic to your website:
