Loans

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TechCrunch  51 min ago  Comment 
 Earnest, the online lending service targeting millennial borrowers, is launching a new customized interest rate for its customers. The new product for Millennials allows the company to offer low-interest loans, typically between 4.25% and 5.25%...
The Hindu Business Line  2 hrs ago  Comment 
Civic services, water supply to be augmented in over a dozen towns
BusinessWeek  3 hrs ago  Comment 
A report finds high default rates on franchise loans
newratings.com  Sep 16  Comment 
HOFFMAN ESTATES (dpa-AFX) - Department store chain Sears Holdings Corp. (SHLD) disclosed in a regulatory filing that it borrows a $400 million secured short-term loan from its Chief Executive Officer and Chairman Edward Lampert's hedge fund...
New York Times  1 hr ago  Comment 
The Hindu Business Line  Sep 15  Comment 
Long-term loans are the crying need for farm sector: RBI chief
DailyFinance  Sep 15  Comment 
SAN DIEGO, CA -- (Marketwired) -- 09/15/14 -- Seacoast Commerce Bank (OTCQB: SCCB) today announced the opening of its 12th Small Business Administration ("SBA") Loan Production Office, located in Beaverton, Oregon and the hiring of Steve Alkana,...
The Hindu Business Line  Sep 15  Comment 
The banking sector needs to question the categories under priority sector lending, according to RBI Governor Raghuram Rajan. "Select special sectors need ease of credit ... the bigg...
Wall Street Journal  Sep 15  Comment 
International banks sharply increased their cross-border lending during the first three months of 2014, particularly to China, a report showed, providing further evidence that the aftershocks of the global financial crisis and subsequent euro-debt...
guardian.co.uk  Sep 14  Comment 
As small businesses continue to have trouble attracting attention from big banks, many have turned to online alternative lenders who charge higher fees and subject companies to a social-media smell test Small business: by the numbers Craft...




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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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