Loans

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The Hindu Business Line  May 12  Comment 
Central bank also flags States’ continued support to PSUs, pay panel burden
Reuters  May 12  Comment 
The International Monetary Fund said on Friday it had reached a staff-level agreement with Egypt on a second loan instalment that would make available about $1.25 billion.
Motley Fool  May 12  Comment 
Mortgage rates creep upward today, with a couple of notable exceptions.
The Hindu Business Line  May 12  Comment 
Fitch Ratings today said Indian authorities are making a more concerted push to clean up bad loans in the banking sector but the move would impinge on banks’ profitability in the short-term. It sai...
The Economic Times  May 12  Comment 
P2P startups are finding it difficult to raise funds because of regulatory uncertainty.
Channel News Asia  May 11  Comment 
Home Capital Group, Canada's biggest non-bank lender, is looking to divest about CUS$2 billion in assets to help pay down a high-interest loan and delay a potential sale of the entire company, according to people familiar with the situation.
The Times of India  May 11  Comment 
TURKEY-BANKS/:Turkey loan guarantee fund a boon for banks' loan growth, earnings
Motley Fool  May 11  Comment 
The peer-to-peer lending leader has been a good bet for short sellers in its two-year publicly traded history.
The Times of India  May 11  Comment 
India’s largest lender had lobbied to involve government agencies in dealing with bad loans. “People having to take difficult decisions can now feel they are doing it in the proper way, with a transparent process,” said Arundhati...
Automotive World  May 10  Comment 
In an effort to extend mobility to underserved populations, Toyota is pleased to announce a partnership with Dallas-based On the Road Lending, an organization that provides vehicle selection assistance, low-interest auto loans and long-term...




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Loan

A loan is an arrangement to borrow money. The lender provides the money with the understanding that the borrower will return the corpus in the future plus interest which gives the lender an incentive to lend out the principal.

Investors use many types of loans for example it could be a purpose loan using securities as collaterall with proceeds from the loan being used to purchase additional securities. [1] Or it could be a Hypothecate loan pledging securities as collateral for a loan to use for a specific purpose, without giving up ownership of the securities. [2]


Loans can broadly be categorized in to two variations:

same day loans

Secured Loans

This is the kind of loan where the borrower pledges some kind of collateral as a security until the principal is paid off completely. The most common example would be a Mortgage Loan, where the lender holds a lien on the house title until it's paid off in full.

Same day cash loans

Secured loans that lack sufficient collateral can sometimes be made by having the lender secure a guarantee from the SBA. Quickcash

Each lender will have their own underwriting criteria for a secured loan, but typically the following five factors of the borrower are considered: 1.) Capital 2.) Capacity 3.) Collateral 4.) Conditions 5.) Character [3]

12 month loans fast

Unsecured Loans

This is the kind of loan where the borrower does not provide a collateral. But, generally should provide proof of regular source of income and / or stable job so that the lenders can weigh their risk and come up with an interest rate for the term of the loan.
Examples would be, credit card loans, personal loans etc,.

13c, to lend, to borrow, originally, to let have, to leave (to someone), gift, loan is attested from 1620s, Loan word (1874), loan-translation is attested 1933. Slang loan shark first attested 1905. [1]

References

  1. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton Gordon Malkiel ISBN-10: 0393062457 pg295
  2. A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton Gordon Malkiel ISBN-10: 0393062457 pg182
  3. http://bizplancompany.com/the-5-cs-of-lending/
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