What is the difference between loan and investment?
A loan is an agreement between us and the loan issuer wherein we borrow a fixed amount of money from them and then repay the money along with interest. Ex: home mortgage loans, personal loans, car loans etc An investment is nothing but depositing money in an financial instrument which would appreciate in value over a period of time and give us profits. ex: shares, mutual funds, real estate etc
- A loan is a deployment of monies to a borrower in exchange for an unconditional promise to repay. An investment is the deployment of monies to an individual whereby repayment over and above the amount deployed is conditioned upon the happening of a specified event (usually the realization of a “profit" over and above the amount expended).
We've handpicked 25 related questions for you, similar to «What is the difference between loan and investment?» so you can surely find the answer!