loan
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loan
An amount of money that is borrowed from a bank or another institution for a certain period of time and must be repaid in installments. It often involves larger sums, e.g. for buying a house.
Für den Bau ihres Hauses hat die Familie ein Darlehen bei der Bank aufgenommen.
The family took out a loan from the bank to build their house.
The word 'Darlehen' (loan) is related to the verb 'leihen' (to lend/borrow). This connection helps you remember the meaning 'borrowed money' more easily.
Ein Darlehen ist Geld, das man sich für eine bestimmte Zeit leiht.
A loan is money that you borrow for a certain period of time.
Certain verbs are fixedly connected with 'Darlehen' (loan). You can 'ein Darlehen aufnehmen' (take out a loan, as a customer), 'ein Darlehen gewähren' (grant a loan, as a bank), 'zurückzahlen' (repay), or 'tilgen' (pay off/amortize).
Wir müssen das Darlehen in den nächsten 20 Jahren zurückzahlen.
We have to repay the loan over the next 20 years.
'Darlehen' (loan) is a formal word used mainly in financial and legal language, for example in bank contracts. It usually refers to large sums with a long term.
Der Notar prüfte den Vertrag für das Immobiliendarlehen.
The notary reviewed the contract for the real estate loan.
financing
When buying a house, both words can refer to the funds needed. A loan is the specific amount borrowed and repaid, while financing refers to the overall organization of obtaining the money. Use „Darlehen“ for the individual amount and „Finanzierung“ for the overall arrangement.
Für den Hauskauf nahm das Paar bei der Bank ein Darlehen über 250.000 Euro auf.
The couple took out a loan of 250,000 euros from the bank to buy the house.
Die Finanzierung des Hauses besteht aus unserem Eigenkapital und einer monatlichen Rückzahlung.
The financing for the house consists of our own funds and a monthly repayment.
