Category: Loans

A loan is a formal arrangement, usually for a fixed period of time (which you agree at the start). A loan is a debt provided by an entity (organization or individual) to another entity at an interest rate, and evidenced by a promissory note which specifies, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and date of repayment. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay…

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An overdraft is a type of borrowing facility, it lets you borrow money through your bank account. It’s typically used for an unexpected bill or an essential repair.  It’s a convenient way of accessing extra money when you need it quickly. This option of borrowing is usually offered by banks to customers who have more money going out of their accounts than they have coming in. It’s widely seen as a short-term fix and should not be used for long term borrowing. If you are in debt or your income…

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