Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds.

Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.

interest

Interest refers to the remuneration paid by the borrower to the lender in order to obtain the right to use the funds, which is the use price of the funds in a certain period (that is, the loan principal). The loan interest can be calculated in detail by the loan interest calculator.

In civil law, interest is the legal fruit of principal.