Loans

RECENT NEWS
The Economic Times  7 hrs ago  Comment 
The SC decision to cancel the allocation will have bearing on thermal power plants, in which the banks have put in more than Rs 1 lakh cr as loans.
New York Times  10 hrs ago  Comment 
The lender, which is 81 percent owned by the British government, said that it expected to “significantly outperform” its prior guidance.
BBC News  11 hrs ago  Comment 
State-owned Royal Bank of Scotland says an improving economy means it can free up £800m from the pot of money set aside to cover losses on bad loans.
guardian.co.uk  11 hrs ago  Comment 
The figures add weight to the comment by the Reserve Bank last week that housing credit has become unbalanced The value of loans to housing investors has surged at twice the rate of those to homeowners in August, lifting by 0.8%, or $3.7bn, to...
Wall Street Journal  Sep 30  Comment 
The Reserve Bank of India left its benchmark lending rate unchanged as it waited for more signs that inflation in Asia's third-largest economy is retreating.
OilVoice  Sep 30  Comment 
Range Resources Limited announce that it has signed a loan agreement for up to US15 million in mediumterm financing with Lind Asset Management LLC a New Yorkbased institutional investor managed b
Forbes  Sep 29  Comment 
Lending programs create special challenges for federal budgeting. So special, in fact, that the Congressional Budget Office estimates their budget effects two different ways. According to official budget rules, taxpayers will earn more than $200...
Forbes  Sep 29  Comment 
The fight between federal regulators and auto lenders over alleged discrimination in auto loans officially got a lot broader this month, as the Consumer Financial Protection Bureau asserted its authority over so-called “captive” finance...




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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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