Legal Definitions - savings-and-loan association

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.