Loans

RECENT NEWS
Motley Fool  Jun 12  Comment 
Even though a balloon mortgage and its low monthly payments can be tempting, you should use extreme caution before considering one.
Wall Street Journal  Jun 12  Comment 
China moved to support a breathtaking but increasingly volatile stock market rally, granting a rollover of loans investors get from brokerages to buy shares while limiting the scale of such “margin finance.”
The Times of India  Jun 12  Comment 
The government, Jaitley said, would also consider favourably the demand of PSU banks for more capital infusion, over and above what was earmarked in the budget for 2015-16.
The Australian  Jun 12  Comment 
Record low interest rates have sparked a strong rise in lending finance in April, data from the ABS released this morning shows.
Reuters  Jun 11  Comment 
More U.S. companies including Compusearch Software Systems Inc are choosing to place second-lien loans with single alternative lenders rather than syndicating broadly as...
The Hindu Business Line  Jun 11  Comment 
Finance Minister Arun Jaitley to meet bank chiefs today
guardian.co.uk  Jun 11  Comment 
After an FCA clampdown on the sector, the number of cases in England and Wales nearly halves to 5,554 in first three months of 2015 The number of payday loan problems being reported to Citizens Advice has nearly halved compared with a year ago....
Forbes  Jun 11  Comment 
Because they are tax-free and easy to do, 401(k) loans seem like a convenient way to get quick cash. Trouble is, there are too many trapdoors. These loans are a good way to torpedo your retirement security.
The Hindu Business Line  Jun 11  Comment 
The Reserve Bank of India today made a case for developing better strategies to deal with the problem of bad loans as hiding them would aggravate the situation for the banks as well as borrowers.




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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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