Loans

RECENT NEWS
Reuters  5 hrs ago  Comment 
The slower than expected syndication of a US$7.5bn senior acquisition loan, which is part of a US$11.6bn financing backing Analog Devices’ US$14.8bn acquisition of chipmaker Linear...
Clusterstock  11 hrs ago  Comment 
Online peer-to-peer lending platform Zopa is fuelling growth with riskier loans, according to an analysis by the credit ratings agency Fitch, which expects default rates to rise. Fitch on Thursday released its first-ever rating of a batch of...
The Economic Times  Sep 23  Comment 
The move has raised the spectre of lenders losing substantially, and raised doubts whether it is a trial balloon for the shareholders to negotiate a better deal than what the banks are willing at this point.
newratings.com  Sep 22  Comment 
ANKARA (dpa-AFX) - Turkey's central bank trimmed its key lending rate further by a quarter point, while maintaining the repo and borrowing rates on Thursday. The Monetary Policy Committee of the Turkish central bank lowered the...
MarketWatch  Sep 22  Comment 
South Korea’s Hanjin Shipping Co. got temporary relief after its largest shareholder’s board agreed to provide 60 billion won ($54 million) to get its stalled supply chain moving again.
The Economic Times  Sep 22  Comment 
Kerala showed 16% increase in such loans, but borrowers too defaulted with 8% rise in non-performing assets.
Reuters  Sep 22  Comment 
India is negotiating with U.S. Export-Import Bank for an $8-9 billion loan to finance six Westinghouse Electric nuclear reactors, two sources familiar with the talks said, although a lending freeze at the trade agency threatens progress.
Forbes  Sep 21  Comment 
Ford received a $5.9 billion government loan to build small, electrified vehicles in the U.S. Now it's moving production of those cars to Mexico. Should taxpayers cry foul?
The Economic Times  Sep 21  Comment 
One way to revive profitability, and reduce the need for external capital, is for bank CEOs to pray their credit costs go down.




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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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