Loans

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DailyFinance  5 min ago  Comment 
TPG Specialty Lending, Inc. (NYSE:TSLX, “the Company") today announced that Fitch Ratings has assigned the Company investment grade ratings of BBB-; the Rating Outlook is Stable. The Fitch ratings follow Standard and...
The Hindu Business Line  4 hrs ago  Comment 
Lenders working to close avenues for defaulters to get loans in future
Yahoo  7 hrs ago  Comment 
Banks are handing out mortgages of as much as $10 million to the wealthy in record numbers while first-time homebuyers struggle to get loans. Erin Gorman, managing director at Bank of New York Mellon Corp., said she's fielding more requests for...
The Hindu Business Line  Jul 28  Comment 
The 17 per cent profit growth recorded by Bank of Baroda (BoB) in the June quarter was aided by a healthy 15 per cent growth in net interest income. This is the third consecutive qua...
The Hindu Business Line  Jul 28  Comment 
Intended to pressure companies to reduce such exposure, reduce banks’ provisioning
Financial Times  Jul 28  Comment 
Flow of funds through online platforms doubles in first half of the year as 66,000 retail investors offer loans to individuals and small businesses
New York Times  Jul 28  Comment 
Banking officials say they give better terms to regular customers. But is that really the case?
Cellular News  Jul 28  Comment 
The long running saga over control of Turkey's Turkcell has moved a step closer to resolution after a British court approved plans by Cukurova to repay a US$1.6 billion loan to Russia's Altimo. Click here for more.




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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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