What Is a Borrower? A loan is the act of lending, especially monetary, that involves a bank. A loan entails the redeployment of monetary resources over a time period between a lender and a borrower. A borrower is the person that applies for a loan and the lender refers to the bank from which money is loaned. A loan becomes a debt that is owed by the borrower to a bank. A lender, in this case the bank, would initially give the borrower an amount of money, which the borrower will pay back, typically but not always in installments over a period of time. Taking a loan is a service that is provided by a bank, and thus the borrower is required to pay for that service, in the form of interest.

Borrowers usually take loans to assist him financially for home restoration, auto repairs, further education, vacations, or to get out of immediate debt. Most loans are designed to provide financial aid to those persons or families who are financially strained. There are many types of loans, some of which are relatively inexpensive but can provide incalculable protection to individuals and families.

Borrowers may find loans a much more suitable option than credit cards because loans generally carry a much lower interest rate than the latter, and thus the principle can be repaid more quickly. Loans are also much more flexible because a borrower can settle on the amount he wishes to borrow and decide the time period for which he wants to borrow it. With a Canadian loan, borrowers can immediately get a new room for their home, go on a long awaited vacation, or complete urgent repairs on vehicles.

Business loans are loans taken to initiate a business venture. Many affluent Canadian business men today recognize that they owe their success not only to their business prowess and their decision making skills, but also, importantly, to their choice of business loan from the right bank.

Small Canadian business loans cater to many of the small businesses that exist in Canada today. A small business loan is in actuality a personal loan taken by a borrower to start a small business that he plans to initiate. It is a loan taken by an individual to carry out his own business conducting plans.

These loans usually don't depend on the kind of business a borrower wishes to start or its standing. What is important is the borrower's assets status. If a person has much to offer in the way of assets as collateral, then the loan is given to said borrower without a hitch.

Else, if a borrower seeks to expand his/her business, then a small business loan will only be given to him when his assets grow sufficiently credible and the bank can rest assured that they can and will be repaid. Securing a loan will mean contributing one's personal property like their house or their car as collateral; this is one of the crucial aspects of securing a small business loan. What Is a Borrower?

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