Loans

RECENT NEWS
guardian.co.uk  34 min ago  Comment 
Building society says net mortgage lending slumped by £2bn to £3.6bn in the six months to the end of September The housing market is starting to cool, Nationwide building society has said as it reported a fall in mortgage lending in the past six...
The Economic Times  2 hrs ago  Comment 
"RBI is exploring ways to allow banks more flexibility in (loan) restructuring. This is a risk we are prepared to take if it allows more projects to be set on the track to recovery," he said.
MarketWatch  Nov 24  Comment 
A Wall Street trade group is challenging a key plank in the Dodd-Frank financial-reform law that was designed to reduce risky loans. The Loan Syndications and Trading Association filed a lawsuit against the Federal Reserve and Securities and...
The Hindu Business Line  Nov 24  Comment 
Bankers’ group recommends to Govt
Wall Street Journal  Nov 24  Comment 
As China’s economy slows, guarantee chains—in which companies pledge to back loans to other companies—are wreaking havoc.
Financial Times  Nov 24  Comment 
‘Lower-for-longer’ funding costs driving refinancing, says Fitch
The Hindu Business Line  Nov 23  Comment 
Corporation Bank (Chennai Circle) is targeting to achieve Rs 6,000 crore from retail lending this fiscal. The circle has achieved Rs 4,700 crore till mid-November and is hopeful of reach...




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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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