A loan (but not necessarily a debt consisting of some other form of credit) is created by an agreement between the borrower and the lender. The terms of the agreement may take various forms - for example, the loan may be divided into segments for the purposes of:
- securing it on assets
- calculating the interest payable
- accounting.
So a single loan may:
- be represented by two or more accounts
- bear interest on different segments at different rates
- be secured on two or more assets.
Despite these factors if the agreement is for a single loan it is treated as such for all the purposes of the beneficial loan rules, unless it is aggregated with other loans for the calculation of the chargeable amount of the benefit.
Just as a single loan can involve two or more accounts, rates of interest or forms of security, two or more separate loans may be:
- subject to the same interest terms
- secured on the same asset
- held in the same account.
If two or more loans may be aggregated for a particular purpose this does not make them a single loan for other purposes. Each form of credit other than a loan is a single loan under the beneficial loan rules. So a series of forms of credit (for example, the provision of a monthly service on credit) represents a series of separate loans.
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