“Neither a borrower nor a lender be.” Although this might be excellent advice in matters concerning family and friends, borrowing and lending are frequently the foundation of a booming economy.
A loan is a sum of money borrowed for a limited period. A loan may be obtained from an individual or from an institution such as a bank and is generally granted at a specific rate of interest. Interest is the fee that the borrower pays to use the money. An extremely high rate of interest --- and certainly any amount more than law permits --- is called usury. Lending money can be a risky business, for there is always the possibility that the borrower may not be able to pay the loan. For this reason, a lender generally requires the borrower to register something valuable of his or hers, known as collateral (抵押),
