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Simple English definitions for legal terms
savings-and-loan association
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A quick definition of savings-and-loan association:
A savings-and-loan association is a type of bank that mainly gives out loans for people to buy homes. They also offer other banking services like checking accounts. They were created a long time ago to help people who didn't have a lot of money save and borrow money at fair rates. They are sometimes called S&Ls or thrifts.
A more thorough explanation:
A savings-and-loan association is a type of financial institution that is similar to a bank. It mainly provides home-mortgage loans, but it also offers other banking services like checking accounts. It is also known as S&L, loan association, thrift institution, or thrift.
For example, if you want to buy a house, you can go to a savings-and-loan association to get a mortgage loan. They will lend you the money to buy the house, and you will pay it back with interest over time. You can also open a checking account with them to manage your money.
Savings-and-loan associations were created to help people with modest resources and income to save money and get loans. They were developed by social reformers, philanthropic benefactors, religious and fraternal organizations, trade unions, employers, and thrift entrepreneurs. They provide an alternative to commercial banks, money lenders, and pawn shops that may not offer favorable interest rates to poor individuals and families.