A loan register is a record used to track due dates of loans issued by a lender, typically arranged chronologically. It includes borrower name, loan account number, amount owed, and due date. Some lenders add contact information and co-signer details. Electronic and spreadsheet formats are common. A loan register is a record or journal used […]
A home loan is a secured loan where the purchased item serves as collateral until the loan is paid off. It is commonly used in countries influenced by English law and can be used for commercial vehicles, equipment, and mobile homes. A chattel loan is a type of secured loan where the collateral is the […]
A loan manager oversees loan department activities, coordinates work, monitors loans for compliance with regulations, sets and enforces policy, and trains and disciplines employees. No special education is required, but experience and good customer service skills are essential. A loan manager is a member of staff at a financial institution charged with overseeing activities in […]
Soft loans offer lower interest rates and more favorable repayment terms than other types of loans. Qualifying for a soft loan requires demonstrating the ability to repay and establishing a positive history with the lender. Private lenders may also offer soft loans with open-ended repayment terms and little to no interest. Soft loans are loan […]
Unsubsidized loans allow students to finance their education, but interest begins accruing immediately. They can be obtained from various financial institutions, but don’t offer the same benefits as subsidized loans. They may be a good option for students who don’t qualify for grants or subsidized loans. The application process is simple. Unsubsidized loans are student […]
Lending investors match people who need money with those who have excess capital and are willing to lend at higher interest rates. They have more lenient credit score requirements, know their clients personally, and offer faster processing. They make a profit from fees and commissions and may secure loans against borrower assets. Some people cannot […]
A student loan cosigner has the same responsibilities as the student borrower, including a credit check. The cosigner is financially responsible for the loan if the borrower defaults, which can have negative consequences on credit scores and future opportunities. It is important to read the fine print before signing any loan. Simply put, the responsibilities […]
A final loan pays off the remaining balance on a short-term construction loan, allowing for interest-only payments for a period of time after construction. It may have a better interest rate and be beneficial for commercial buildings, but may result in higher total payments and less attractive rates if interest rates change during construction. A […]
Tips for completing a payday loan application include reading all details carefully, verifying eligibility, being honest and thorough, and knowing rates and terms. Review all details of each application before submitting and be familiar with the company issuing the loan. Be honest and thorough in submitting information and aware of specific rates, fees, and terms. […]
Loan proceeds are the funds disbursed by a lender, less origination and processing fees, and can be sent directly to the borrower or an authorized third party. Loan contracts must discuss fees, expenses, and limitations on how the borrower can use the funds. Disbursement time may depend on the loan and terms. Loan proceeds are […]
The SBA 504 loan program allows small businesses to purchase fixed assets with government-guaranteed loans obtained through a combination of financing from a conventional lender and a Certified Development Corporation. The program is only available for small for-profit businesses with a net income of less than $2.5 million USD and a net worth of less […]
Subprime loans are offered at higher interest rates to individuals with lower credit scores, making them more expensive. Financial advisors suggest buying only if necessary, as interest rates can vary between lenders. Tougher criteria for subprime loans have led to fewer home sales and a stagnant real estate market. The term subprime loan is somewhat […]
Loan purchase is a financial transaction where loans are sold by financial institutions to new owners, sometimes at a discount. The buyer receives higher returns as loans are repaid, while the seller benefits from receiving a lump sum early. This is common for mortgages, car loans, and credit card debt. The borrower’s terms remain the […]
Payday loan affiliates direct customers to payday loan sources and are paid per click or request completed. They use SEO and marketing techniques to increase traffic and are not responsible for monitoring traffic. The lender views the partnership as a cost of doing business. The affiliate has low startup costs and must have a website […]
Conforming loan limits are the maximum amount that Fannie Mae and Freddie Mac will pay a lender for a mortgage. They change according to the median cost of homes in a given year and are generally easier to obtain and offered at lower rates. Freddie Mac and Fannie Mae set standards for conforming loans, including […]
Interest rates for corporate loans are influenced by national averages, the state of the economy, the financial condition of the company, and its credit rating. Collateral can help lower rates, and lenders also consider the prevailing average lending rate and project the market’s direction. There are several factors affecting the level of interest rates that […]
A balloon loan is a short-term mortgage that offers level payment amounts, but does not amortize over the original term. The borrower owes a lump sum payment at the end of the loan term, which typically runs for five to seven years. Balloon loans often carry low interest payments, but the borrower must be disciplined […]
To find the best auto loan rate, consumers should research rates available to their credit score range, consider the length of the loan term, and make a down payment or trade-in. Online shopping and checking with current financial institutions can also help. Working positively with the Business or Finance and Insurance Office can lead to […]
A loan note is a legal document that indicates a buyer owes a seller money for a purchased item on credit. It details the loan terms, has tangible value, and can be sold or traded. Loan notes are commonly used in business and can be sold to increase liquidity. A loan note is a legal […]
An apartment loan is used to purchase housing units that are then rented out to tenants, with the monthly rent used to pay off the loan. Qualification requires a down payment, acceptable credit rating, and a business plan. The loan is for a specific unit or set of units in a larger condominium, and the […]
