Is a bank loan a credit or debit?

However, you will notice that some of the accounts have a greater number of debits, while others have a greater number of credits. The accounts carrying a debit balance are: Bank Account, Bank Loan, Interest Expense, and Office Supplies Expense. The Owner Equity account is the only account carrying a credit balance.Sep 8, 2014 read more

In addition, what about the interest of the loan and payments - Answered by a verified Financial Professional read more

The double entry to be recorded by the bank is: 1) a debit to the bank's current asset account Loans (or Loans Receivable) for the principal amount it will collect, and 2) a credit to the bank's current liability account Noninterest Bearing Demand Deposits. read more