Loans

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TechCrunch  4 hrs ago  Comment 
 Online finance startup SoFi got its start refinancing student loans but gradually has been adding other services to members. To expand into new regions and move closer to becoming a full-service financial services company, SoFi has confirmed...
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The issue is impacting investments, growth: CEA Subramanian
Clusterstock  Feb 23  Comment 
This story was delivered to BI Intelligence "Fintech Briefing" subscribers. To learn more and subscribe, please click here. The US consumer online lending industry had a difficult 2016, with big players such as Prosper and Lending Club suffering...
The Hindu Business Line  Feb 23  Comment 
To focus more on less risky retail loans
Forbes  Feb 23  Comment 
The market for personal lending is large, fragmented and surprisingly underserved. To tap into this latent demand, banks can build an effective personal lending model with three core principles.
The Economic Times  Feb 23  Comment 
Asset quality trends for public sector banks have been more benign, and the pace of deterioration has slowed in the past two quarters from the levels seen in FY2016.
Forbes  Feb 23  Comment 
Since its appearance on Forbes’ first annual Next Billion Dollar Startups list on 2015, Orchard Platform has grown its team by at least 200%, partnered with over 20 new loan originators, and continued expanding internationally. But beyond that,...
The Economic Times  Feb 22  Comment 
RBI Deputy governor Viral V Acharya suggested a two-pronged strategy to resolve the issue of bad loans including creation of a private asset management company.




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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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