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Loan

A "loan" is an arrangement where a sum of money is borrowed from one party (the "lender") with a promise by the party receiving the money (the "borrower") to repay the loan at a designated date, typically with interest.

 

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   Hurdle Rate

The "hurdle rate" is the rate of return on an investment below which a person will not invest. In other words, if a person's hurdle rate is 8 percent, he or she will not invest in anything unless he or she can anticipate getting at least an 8 percent return. The hurdle rate can also be used to analyze an investment by a company, where it is often called the "required rate of return." It is the rate of return below which the investment does not make sense.

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