Loans

RECENT NEWS
Forbes  35 min ago  Comment 
Campaign for Fair Finance (CFF) founder Dr Roger Gewolb has welcomed the intervention of the UK Financial Conduct Authority’s (FCA) new chief executive Andrew Bailey as an investigation gets underway into peer-to-peer (P2P) lending, a relatively...
Reuters  4 hrs ago  Comment 
Axis Bank Ltd on Friday reported a surge in bad loans in its first quarter that pushed net profit down by a fifth but the bank said the growth in problem loans was in line with its expectations.
Forbes  5 hrs ago  Comment 
Mortgage rates have been below 4% since December, but the thought of rising rates is enough to convince millennials to look for a cheaper house or not buy one entirely.
The Australian  Jul 22  Comment 
Malcolm Turnbull has announced a $49.2 million loan to support South Australia’s ailing steel sector and workers at Arrium.
Reuters  Jul 21  Comment 
Lenders could accelerate the disbursement of a $4.125 billion loan to Peruvian gas pipeline operator Gasoducto Sur Peruano GSP SA if Brazilian engineering group Odebrecht...
The Hindu Business Line  Jul 21  Comment 
The financial services platform has tied up with Edelweiss Financial Services, Manappuram Finance
MarketWatch  Jul 21  Comment 
European Central Bank chief Mario Draghi offers few hints on monetary policy, but offers an important endorsement of potential public help for banks saddled with bad loans.
Reuters  Jul 21  Comment 
HDFC Bank Ltd said it was "comfortable" with the rise in bad loans in its fiscal first quarter as the nation's second-biggest private sector lender by assets reported net profit rose by a fifth in line with analysts' estimates.




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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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