USA HISTORY

Detailed explanation-1: -Credit in Lending and Borrowing There are many different forms of credit. Common examples include car loans, mortgages, personal loans, and lines of credit. Essentially, when the bank or other financial institution makes a loan, it “credits” money to the borrower, who must pay it back at a future date.

Detailed explanation-2: -A loan is a form of debt incurred by an individual or other entity. The lender-usually a corporation, financial institution, or government-advances a sum of money to the borrower. In return, the borrower agrees to a certain set of terms including any finance charges, interest, repayment date, and other conditions.

Detailed explanation-3: -A line of credit is a type of loan that lets you borrow money up to a pre-set limit. You don’t have to use the funds for a specific purpose. You can use as little or as much of the funds as you like, up to a specified maximum. You can pay back the money you owe at any time.

Detailed explanation-4: -Here’s an easy way to remember the difference: “Borrow” means to take, and “loan” means to give. More specifically, “borrow” is using something belonging to someone else with the intention of returning it.