Loan - Asset / Liability

CFA Level III
#1

I have come across in several places the word ‘Loan’. In my opinion this is ambiguous. I struggle to judge if he is referring an asset (inflow) or a liability (outflow).

Does anyone here have any trick to identify this.

Does it have more variations than what I have written above.

Kindly guide.

Thank you

#2

In case of "loan’ look for key words such as take, give, borrow, lend etc.

#3

A customer loan is an asset. A customer deposit is a liability.

#4

If you lend money to someone else, the loan’s an asset. If someone else lends money to you, the loan’s a liability.