Loans

RECENT NEWS
The Hindu Business Line  3 hrs ago  Comment 
In a bid to complement the Centre’s thrust on affordable housing, the Reserve Bank of India relaxed the norms for giving loans for houses that costs under ₹10 lakh. It has been decided...
The Economic Times  4 hrs ago  Comment 
A day after RBI cut the repo rate, the government today said banks will "slowly" but surely will reduce lending rates for borrowers.
TechCrunch  6 hrs ago  Comment 
 In a recovering economy where big banks are restricted by complex regulations, startups and venture investors are gearing up for the next gold rush in the trillion-dollar marketplace lending industry. That’s trillion. With a T. Read More
CNNMoney.com  7 hrs ago  Comment 
Drivers are borrowing more than ever to buy cars, fueling the jump in auto sales last year.
The Australian  8 hrs ago  Comment 
GERMANY has agreed to pay Airbus €623 million ($881.7m) in loans from Germany for the new Airbus A350 widebody jet.
Finance Asia  10 hrs ago  Comment 
A roundup of the latest syndicated loan market news.
The Hindu Business Line  Mar 5  Comment 
At a time when educational loan applicants are crying hoarse about getting loans sanctioned, here is one student who has managed to get the sanction despite a 13-year gap in studies. “It was not e...
Finance Asia  Mar 4  Comment 
Demand outstrips supply for Li Ka-shing-backed Cheung Kong Property's jumbo loan as banks shrug off nagging Chinese real estate worries.
Wall Street Journal  Mar 4  Comment 
China’s central bank has taken a fresh move to lower borrowing costs for businesses in a weakening economy, just days after it cut policy interest rates for the second time in less than four months.




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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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