Loans

RECENT NEWS
The Hindu Business Line  4 hrs ago  Comment 
Asian Development Bank (ADB) has granted a whopping Rs 6,000 crore soft loan for strengthening and building road network in Madhya Pradesh, state public works department minister said here today.
Motley Fool  Dec 19  Comment 
The market doesn't seem to understand Lending Club, and investors could pay the price.
Benzinga  Dec 19  Comment 
BioAmber Inc. (NYSE: BIOA), an industrial biotechnology company producing sustainable chemicals, today announced it has repaid the $25 million loan that it secured in June 2013 and secured a new debt facility with funds managed by Tennenbaum...
Reuters  Dec 19  Comment 
Royal Bank of Scotland wants to sell a 100 million euro loan it had extended to builder Sacyr as part of a syndicate, as Spanish firm itself races to refinance a large slice of...
Forbes  Dec 18  Comment 
Last week marked the first ever-initial public offering for an online lending platform when LendingClub raised nearly $870 million in its IPO.  LendingClub was priced at $15 per share but opened the day on the NYSE well above that at $24.75 per...
The Straits Times  Dec 18  Comment 
December 19, 2014 1:41 AM A NEW online tool from United Overseas Bank (UOB) could help home seekers figure out loan amounts and determine if they are taking on too much debt.
The Hindu Business Line  Dec 18  Comment 
Loan book to get better in the next couple of years
Clusterstock  Dec 18  Comment 
There's a growing disturbing trend on Wall Street. More leveraged loan buyers are increasingly "blacklisting" investors they don't like and preventing them from investing in their loans, Bloomberg's  Nabila Ahmed and Kristen Haunss ...
The Hindu Business Line  Dec 18  Comment 
Power Finance Corporation has agreed to extend a Rs 1,112 crore loan to Andhra Pradesh power sector, which includes Rs 1000 crore towards bridging the fund requirement for the powe...




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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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