The difference between a loan and a loan.

In economic practice, there are concepts that are similar in their purpose, but at the same time have certain differences. For example, to a person who is not associated with this field of activity, it may seem that a loan and a loan have the same meaning, that is, they mean the same action. But this opinion is erroneous, and we will try to explain what it is connected with.


Loan represents a relationship between legal entities, according to which one party transfers any movable and immovable property to the temporary possession of the other party. At the end of the term of the agreement, the borrower is obliged to return the property received to the lender, and it may have a certain percentage of wear and tear, but no more.

A loan is a contractual relationship in which a legal entity transfers funds for use to another on the terms of urgency and repayment. This means that the borrower is obliged to repay the same amount within a certain period.


Although the main similarity between the two concepts is the moment that one party transfers into temporary possession and use of any property, this is where the relationship ends. So, with a loan, the subject of the agreement is a certain amount of money, and with a loan - movable or immovable property. In addition, money is always returned in the amount in which it was originally transferred, and tangible property, albeit to a small extent, is still subject to wear and tear, which reduces its initial value.

The loan can be either urgent or indefinite, which must be specified in the contract. The loan is always issued on terms of urgency, that is, the borrower is obliged in any case to return the amount received, and if this does not happen, then the lender can apply penalties, for example, set a percentage for each day of delay in payment.


  1. The subject of the loan is movable and immovable property, the subject of the loan is cash and non-cash funds.
  2. The loan can be either fixed-term or indefinite, and the loan is only a fixed-term transaction.
  3. The subject of the loan is always returned in full, the subject of the loan may have a slightly lower value due to its deterioration during operation. Both parties are aware of this, and therefore the agreement indicates the permissible value of the percentage of property depreciation.