Contra loans?

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If you have an unsecured bank loan and you want to borrow more money is a contra loan created? Is the first loan cancelled out by the contra loan?

2007-01-14 00:25:58 · 3 answers · asked by harryfeelinlean 1 in Business & Finance ➔ Credit

No, the second loan is separate. It may be added onto the first loan, but the first loan is not cancelled by a second.

2007-01-14 00:33:58 · answer #1 · answered by fangtaiyang 7 · 0⤊ 0⤋

You can pay off the 1st loan with the second.If you owe £2,000
say borrow £5.000 leaving you with £3.000.

2007-01-16 05:07:39 · answer #2 · answered by Ollie 7 · 0⤊ 0⤋

no it cant be created

2007-01-14 01:31:36 · answer #3 · answered by me k 1 · 0⤊ 0⤋