What is credit?

Hello,
Through this blog I want to present some posts in the time that I have to help you (or my readers) get a notion of what it means to have a bank in your life.
I will have some posts explaining all the need to know basis of banking, all the products a bank has. I will try to keep it as simple as possible and present all the news and updates and the meaning and definitions of financial terms.

Nowadays, in modern society, all the people have some kind of relationship with a bank.

I will start from scratch with CREDIT. What is credit, or loan?

The credit is a loan, depending on context. It can be regarded as the relationship between the person (or entity) that provide a loan and the person who makes a loan. By extension, the word credit is also used to denote: debt creditor, the debtor's debt, loan or loan amount itself.
The person making the loan is called mortgage lender and the person who called the debtor. The loan is usually a sum of money to be repaid within a specified time with interest. Interest is gain (benefit) that he has demanded that the creditor for the debtor to use the loan. The creditor has a right to claim against the debtor, meaning he is entitled to claim return of the loan and interest under the agreement between the two sides. Borrower (debtor) is obliged to return the loan plus interest lender in terms of time limit.