Loans

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Wall Street Journal  6 hrs ago  Comment 
The government is trying to coax banks back to making mortgage loans to risky borrowers, after a string of expensive disputes over a federal loan program led some banks to conclude it wasn’t worth the headaches.
The Hindu Business Line  8 hrs ago  Comment 
Karnataka Bank is targeting ₹615 crore of MUDRA loans for the current financial year, according to P Jayarama Bhat, Managing Director and Chief Executive Officer of the bank. Launching th...
The Hindu Business Line  9 hrs ago  Comment 
Most of the key economic numbers are in line with our estimates: Arundhati Bhattacharya
Clusterstock  11 hrs ago  Comment 
A US bankruptcy court in Delaware approved a liquidation plan for Corinthian Colleges Inc. that included a potential win for former students of the for-profit college chain, The Chronicle of Higher Education reported last week. The court agreed...
Reuters  Sep 1  Comment 
The Reserve Bank of India (RBI) issued draft guidelines on Tuesday for its proposed plan to change how banks calculate their lending rates, which would make them more responsive to monetary policy actions but would likely be opposed by the sector.
Forbes  Sep 1  Comment 
PayPal's Darrell Esch says the firm's small-business lending is "accelerating" beyond the $2 million a day it was doing in May. Do a little math, and that puts PayPal on track to reach $1 billion around winter.
The Times of India  Sep 1  Comment 
A Dubai-based gold and jewellery retailer has defaulted on loans worth about 500 million dirhams ($136.2 million), with banks considering options including legal action to retrieve the money , four banking and trade sources said.
MarketWatch  Aug 31  Comment 
Sources say that Wells Fargo and private-equity firm TPG would provide the financng.
MarketWatch  Aug 31  Comment 
Moneyologist helps a reader to navigate the mine fields of families and estate planning.




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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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