3 ms·

Loan = Investment?

• mikeyouse 12y ago
  A loan is typically the textbook definition of an investment.. Banks give a student X dollars, after college the student pays X + i. The bank takes some risk and receives more money than they started with. I'm not sure how it wouldn't be an investment.
• recursive 12y ago
  Yes, exactly.
• bduerst 12y ago
  Typically any type of debt is considered an investment by the creditor. Bonds and equity are also considered investments, but the latter is corporate ownership, not debt (which you may be confused about).