What is Foolsaurus?

It's a glossary of investing terms edited and maintained by our analysts, writers and YOU, our Foolish community. Get Started Now!


Borrowing

Borrowing is the process of getting the loan of an asset from another entity usually in return for interest.

Expanded Definition

In the case of personal finance, borrowing is most often a personal loan, credit card debt, an auto loan, a home equity loan, or a mortgage. Pawn shop loans, payday loans, and loans from 401(k) plans are also possible.

Businesses usually establish a strong relationship with a local bank, who works with them to arrange whatever financing they need. Business have similar borrowing opportunities as do individuals, but in addition corporations can borrow by issuing bonds.

Related Fool Articles

  • [link link title]

Related Terms

Recent Mentions on Fool.com

Failed to load RSS feed from http://www.fool.com/Feeds/Search.ashx?q=Loan&filter=p&site=USMF&sort=date%3aD%3aR%3ad1&count=5!
Advertisement