Definition

1. Noun:
   • A loan by a lender to a customer without the use of a third party: A "direct loan" is a financial transaction where a lender provides funds directly to a borrower. This arrangement bypasses intermediaries like brokers, dealers, or other financial institutions, creating a direct relationship between the lending entity and the borrower.

Usage Examples

• Noun:
  • The student applied for a federal direct loan from the government. (The student requested a loan provided straight from the government lender.)
  • Many online lenders now offer direct loans to consumers. (Many digital lenders provide loans to customers without involving third parties.)
  • The advantage of a direct loan is often a simpler application process. (A loan made directly from lender to borrower frequently has a less complicated procedure.)

Advanced Usage

• "to originate a direct loan": to create or issue a loan directly.
  • The bank decided to originate a direct loan for the small business. (The bank chose to create a loan for the business without an intermediary.)
• "direct loan program": an organized system for providing such loans.
  • She enrolled in an income-driven repayment plan for her federal direct loan program. (She signed up for a payment plan based on her earnings for her government-run direct lending system.)

Variants and Related Words

• Direct lending (n): The practice or business of making direct loans.
  • The company specializes in direct lending to entrepreneurs. (The firm focuses on providing loans directly to business founders.)
• Direct lender (n): An institution that provides direct loans.
  • It's important to verify you are working with a legitimate direct lender. (It is crucial to confirm you are dealing with a genuine institution that lends directly.)

Synonyms

• Straight loan: A loan made directly from lender to borrower.
• Bilateral loan: A loan agreement involving two parties, the lender and the borrower.

Related Phrases

• Secure a direct loan: to obtain a direct loan.
  • They managed to secure a direct loan with favorable terms. (They succeeded in obtaining a loan directly from a lender with good conditions.)
• Service a direct loan: to manage the repayments of a direct loan.
  • Her responsibility is to service the direct loan each month. (Her duty is to make the monthly payments on the loan obtained directly.)

Noun

1. a loan by a lender to a customer without the use of a third party; direct lending gives the lender greater discretion in making loans