Udlån

Udlån is a Danish word that translates to "loan" or "lending" in English. It refers to the act of giving something to another person or entity with the understanding that it will be returned. This can encompass a wide range of items, from physical objects to money or even intangible assets.

In a financial context, udlån most commonly refers to borrowing and lending money. Banks and other financial institutions engage in udlån by providing loans to individuals and businesses. These loans typically come with interest, which is the cost of borrowing the money, and a repayment schedule. The borrower agrees to return the principal amount borrowed along with the accrued interest over a specified period.

Beyond financial transactions, udlån can also describe the lending of physical items. For instance, a library offers udlån of books, and a friend might offer udlån of their tools. The core principle remains the same: temporary transfer of possession with an expectation of return. The terms of udlån, whether explicit or implicit, are crucial to understanding the agreement between the lender and the borrower. In legal or contractual settings, these terms are often clearly defined to avoid misunderstandings.