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Annual equivalent rate
A figure quoted in loan advertisements to help people make compare one product with another. It indicates what the rate would be if interest was paid just once a year. |
Annual percentage rate
Where interest on loans is expressed as other than a yearly rate, for example 1.5% per month, APR is the equivalent rate over a year, in this case 19.56%. |
Bridging loan
Bridging Loan - Temporary loan to cover the position which will ultimately be covered by long term finance such as somebody moving house who temporarily owns two houses simultaneously. Such loans can attract a preferential rate of interest and tax relief.
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Currency loan
A term used when money is borrowed in a foreign currency.
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Demand loan
A loan which the lender can recall at any time. There is no specific maturity date. |
Loan capital
That part of a company's capital structure which is raised by loans. Such loans (typically debentures) are usually over a stated period of time and pay fixed interest to the person making the loan. At the end of the period the capital is repaid. This contrasts with share capital where shareholders are entitled to a proportion of the company's profits usually by way of dividends.
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