Loans

RECENT NEWS
Yahoo  11 hrs ago  Comment 
China's largest banks warned of a tough year after posting their weakest half-yearly profit growth in at least six years as a slowing economy forces the lenders to make even more provisions for soured loans and squeezes interest income.
Wall Street Journal  12 hrs ago  Comment 
While the stock market has surged from its low on Tuesday, the recent sharp downdraft highlighted the risks that individual investors and financial institutions face from loans backed by investment portfolios.
New York Times  Aug 28  Comment 
The company also announced that it had raised an additional $67 million from its backers.
The Economic Times  Aug 27  Comment 
The Reserve Bank today asked all scheduled commercial banks to streamline their lending policies for the Micro and Small Enterprises (MSEs) sector.
The Hindu Business Line  Aug 27  Comment 
A young set of customers, the ‘Affluent Millennials,’ are happy to borrow to fund their lifestyle goals
Finance Asia  Aug 27  Comment 
A roundup of the latest syndicated loan market news.
Financial Times  Aug 27  Comment 
Specialist lender enjoys strong performance but warns on rising competition in mortgages
The Australian  Aug 26  Comment 
APRA has left the door open to imposing specific measures in heady property markets such as Sydney.
CANOE.ca  Aug 26  Comment 
Royal Bank of Canada on Wednesday reported a sharp spike in bad loans in the oil-and-gas sector, while strength in personal and commercial banking helped Canada's biggest lender post a higher third-quarter profit.




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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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