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About Loans

A loan is a type of [debt]. All material things can be lent but this article focuses exclusively on monetary loans. Like all debt instruments, a loan entails the redistribution of financial [asset]s over time, between the [wiktionary:lender] and the [wiktionary:borrower].

The borrower initially receives an amount of [money] from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as [interest] on the [debt]. A borrower may be subject to certain restrictions known as [loan covenant]s under the terms of the loan.

Acting as a provider of loans is one of the principal tasks for [financial institution]s. For other institutions, issuing of [debt] contracts such as [bond (finance)] is a typical source of funding. Bank loans and credit are one way to increase the [money supply].

Legally, a loan is a contractual promise of a debtor to repay a sum of money in exchange for the promise of a creditor to give another sum of money.

Types Secured A [mortgage loan] is a very common type of debt instrument, used by many individuals to purchase [housing]. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security - a [lien] on the title to the house - until the mortgage is paid off in full. If the borrower [Default (finance)] on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.

In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter - often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer.

A type of loan especially used in [limited partnership] agreements is the [recourse note].

Unsecured These may be available from financial institutions under many different guises or marketing packages:

[credit card] debt,
personal loans,
[bank] [overdraft]s
credit facilities or lines of credit
[corporate bond]s

The [interest rate]s applicable to these different forms may vary depending on the lender, the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the [Consumer Credit Act 1974].

Abuses [Predatory lending] is one form of abuse in the granting of loans. It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over him or her. Where the moneylender is not authorised, it could be considered a [loan shark].

[Usury] is a different form of abuse, charging excessive interest. In different time periods and cultures the acceptable interest rate has varied, from no interest at all to unlimited interest rates. Credit card companies in some countries have been accused by consumer organisations of lending at usurious interest rates and making money out of frivolous "extra charges" Credit card holders pay Rs 6,000 cr 'extra' [May 03], [2007]

Abuses can also take place in the form of the customer abusing the lender by not repaying the loan or with an intent to defraud the lender.

See also

[Finance], [Personal finance], [Settlement (finance)]
[Debt], [Consumer debt], [Debt consolidation], [Government debt]
[Bank], [Fractional-reserve banking], [Building society]
[FAFSA]
[George D. Sax] and the Exchange National Bank of Chicago - Innovation of instant loans
[Annual percentage rate] (a.k.a. [Effective annual rate])
[Interest-only loan]
[Student loan]
[Payday loan]
[Refund Anticipation Loan]
[Federal student loan consolidation]
[Federal Perkins Loan]
[Stafford loan]
[Title loan]
[Syndicated loan]

References

Information Reference: Wikipedia.org

Loans

Questions and Answers

loans......................................................................?

Q) Ive recently turned 18, im trying to get a loan for a car why wont noone accept em and does anybody know who would be the best people to try in england?

A) Yes try welcome finance... they will lend to pretty much every one, as long as you work. Also try and get a copy of your credit report as there may be wrong info on there that is stopping you from getting credit.

Personal loans.............?

Q) I am Mr. Lomax Milton a private lender. I give out both private and commercial loans to both individuals and corporate business organisations at a low interest rate.Under my loan process, repayment can be made either monthly or yearly. I give out loan for: Free mortgage/loan assessment. Home Purchase Loans.. Refinance Loans.. Fixed Rates.. Adjustable Rates.. Land Development Loans.. Residential Investment Loans.. Multi-unit Loans.. Personal loans... Business loans... Auto loans... Contact lomaxmilton_loan_investment@yahoo.com

A) Yahoo! Answers Community Guidelines DON'Ts 9. Post content for advertising or commercial purposes

Student Loans: we're being ripped off!?

Q) To anyone who has a student loan pls read on and sign the petition on the link below! It seems we are all getting ripped off! For most unsuspecting graduates who are paying back their student loans, the inland revenue takes payments directly from your employer. However after taking monthly amounts the inland revenue does not pay this directly to the student loan company, instead they wait until the end of the financial year in April and then pay the entire year off to student loans. The effect of this is that the inland revenue hold on to your monthly payments for up to a year earning themselves interest. During the same period, because student loans have not received these funds, they in turn charge the graduate interest on the outstanding amount even though it has been paid to the inland revenue In short we get screwed over, so please sign the link below and make a stand: http://petitions.pm.gov.uk/Student-loans/

A) So is this the only way you are getting screwed???? Sometimes I wonder why English students are so 'Wimpy' compared to their French counterparts?? Why aren't you all ripping the faces off those Cs who are F*g you after they took their free educations and then closed the door on everyone else!!!!!!! Blair is a shabby criminal.

yes loans? help please (uk)?

Q) i have appied for a loan with yes loans, someone from the company called me, asked me a few questions and said that i have been 'provisionally axcepted' and that i have 87% chance to be granted a loan. did this happen to u before? and have you been given a loan?? i really need that loan...

A) I advice you not to commit yourself untill the terms are clear, because once you sign you are binded to their conditions even if you are not informed about those. So better try for other alternatives and you have many more good and decent one's where i think you can get much better deals. My sincere advice is try other options and decide the best. You log on to this website and fill the form they will come upto you with the best deal and there is no compulsion to take the loan untill and unless you are satisfied. ALL THE BEST http://www.adverse-credit-mortgage.yourtoys.co.uk

Question about student loans in UK?

Q) I took out two student loans in the UK, in Sept. 1997 and Sept. 1998 using the Student Loans Company. I have always been able to defer payment as I have always earned less than 2000 pounds a month. I no longer live in the UK, am unlikely to earn more than 2000 pounds a month and may never return. Will this debt ever be written off by the Student Loans Company? When I took out the loan, I heard it was written off after 10 years of deferrments, it may have been a rumour. Is this true? I read that is written off after 25 years for new students, does this now apply to me? Has anybody ever sucessfully had their loan written off by the Student Loans Company?

A) As long as you income continues to fall under the threshold for deferment you can continue to defer your repayments each year as normal. However you must contact them each year and send evidence of your gross earnings (under £2034 per month at present to be eligible for deferment). The 25 year rule only applies to students who entered Higher Education after the 1 September 2006. In your case the loan will only be written off : 1) When you reach the age of 65 2) If you die before you pay the loan off 3) If you become permanently disabled and unfit for work Hence you will need to continue deferring your loan. You will have to make sure your contact details are correct as if you miss your date to defer then you will have to make any payments that are due to you. Also if you do not keep them upto date they can demand you repay the whole loan once they locate you...which they can in most places in the world now!

yes loans have offered me a loan?

Q) yes loans have offered me a loan for £2000 at £65 a month the interest is an extra £1200 this is the only sort of place were i can get a loan as i have a really bad credit rating . do you think the interest is reasianble ??? its my only option

A) Try looking at; http://www.moneysavingexpert.co.uk It has a lot of tips for people with bad credit ratings and ways to improve it.

Advice about personal loans - Advantage loans - are they legitimate?

Q) I've applied for an unsecured loan through a UK company called Advantage Loans. They are a broker and claim that they have found a company who will guarantee to give me a loan (bank have said no as borrowed too much already but want to consolidate a few things). The only thing is they have asked me to send a cheque for £49.50 for their services and I'm very wary of this. They say they are registered with companies house and have a website etc but how can I find out if they are legitimate and/or has anyone had a good experience with this company. I'm worried they'll take my money and say no to the loan. Any experienced help would be great thanks!

A) i would say be very careful with this company. check out as much as you can. get an independant company to check for you. if you can consult a solicitor. some have the first consultation free and pay after. regards | Leslie

Provident Personal Loans? Does anyone have any information on these people please? Are they regulated?

Q) My sister in law is a single parent on a council estate who has been totally ripped off by these people. They knock on the doors of people they suspect will struggle to obtain loans elsewhere, or may not have time to do so, and get them to sign up for loans at 177% APR !!! I know she has to accept some responsibility, but the premiums are so high, we are going to have to organise her a new loan with a longer term and lower interest rate so she can afford the monthly premiums. In the past, when she is near to completing paying off one loan, they turn up on her doorstep and offer her another, no affordability checks, no credit checks, etc, they take their NI numbers so if they stop paying, they can get the money straight from their salaries. I would really like to complain about these people, but I looked them up on the internet and as far as I can see they aren't even regulated! Has anyone else had any experience with these 'Lenders'? Any advice greatly appreciated. Jon B- Thanks, but don't you agree that the 'break your legs' lenders are the next step for families when they can't afford the monthly repayments to the Provident and the money starts being debited straight from their wages? Thecoldvoiceof reason- Thanks for your reply, my sister in law was told by the provident agent that their NI number would be used if ever she stopped payments so they coudl take the money straight from her wages. I will double check this with her though, thanks.

A) I think Provident are regulated. But yes the interest rates are beyond a joke. I have never been tempted and have written to authorities about this rip off company sending me unsolicited mail... Guess what...... yes not heard a thing....no response.

yes .loans?

Q) i have been offered a loan of yes . loans and want to know has anybody else had a one of this loan company. and what are they like???

A) If my memory serves me correctly, YES Loans seem to be affiliated with Wentworth Direct Finance. These types of companies give credit to people with a less-than-perfect credit rating, and their interest rates are HIGH! One thing you should definitely be aware of is that most of these companies (eg. Yes Loans, Surefire Finance, Wentworth Finance, etc) that CLAIM to offer finance don't actually offer the loans themselves. They just introduce you to people who do, and for that they charge an admin fee. When you contact any of the companies listed, one of your first questions should be whether they do the loans themselves or if they refer you to another company.

Ethical loans?

Q) Does any one know of an etical loan company,i am not asking about banks.My reson is though i am employed by a uk company,i am a seafarer,and am British, i live in Ireland.But can not get a loan(the reson given being i reside in Ireland) I have tried with my bank ,a costomer from 1983 and other institutes,I have had my credit rating checked ,its spot on. I have heard of an etical group that makes loans ,i saw it on the money pogram or such like .Does any one know of such a group?With thanks Dan

A) Try your local credit union - they're not as restricted as the big banks in what they can do. Good luck.

loans?????

Q) any student loans that arent from fafsa since i missed the deadline (tonight)??

A) The FAFSA is your best way to get the least expensive students loan, so what an entire year and apply before your state's deadline not the federal government deadline, which is the one that just passed. Applying before your state's deadline means you might get a better loan or a possible grant if you qualify. Your best bet is to go to a junior college for two years since the fees are much less than a going to a university for a full four years. The loan rate on non federal loans is quite high 12 percent compared to about 4 to 6 percent usually for a federal student loan. Don't try to cosign with someone as it usually puts the other person in a bind (it can ruin friendships and family ties) if you default on the loan. Almost all banks have a student loan that you can apply for, just remember for next year to apply before your state's deadline.

loans.....?

Q) I got someone to cosign for my autoloan but will they be able to if they have a few loans already taken out?

A) only if their credit allows it, if they are not capable of taking on your loan on top of what they're already paying, then most banks wouldn't allow it.

Loans?????

Q) I am looking to get like a $2000 loan to pay off a credit card bill but I have no idea how they work or if such a little loan is possible. How do you go about getting a loan and how exactly to they work? Does getting a loan give you bad credit?

A) Lots of people borrow money; phone book is full of banks and lenders. Check to make sure you are dealing with someone reputable. Don't pay an upfront fee to borrow. Make sure the interest rate is LOWER than what you are paying on the card; otherwise it doesn't make much sense. Borrowing money doesn't hurt your credit if you keep borrowing in line and pay promptly.

Loans????????????????

Q) Can you pull a loan from land that you own???

A) I assume that you are asking if you can borrow money using land that you own for collateral? The answer to that question is yes. Go to your bank or credit union.

Amcapital loans ALERT!!!!!?

Q) COMMONWEALTH OF MASSACHUSETTS OFFICE OF CONSUMER AFFAIRS AND BUSINESS REGULATION 10 Park Plaza - Suite 5170, Boston MA 02116 (617) 973-8700 FAX (617) 973-8799 TTY/TDD (617) 973-8790 www.mass.gov/consumer DEVAL L. PATRICK GOVERNOR TIMOTHY P. MURRAY LIEUTENANT GOVERNOR DANIEL C. CRANE DIRECTOR FOR IMMEDIATE RELEASE: April 19, 2007 CONTACT: Kimberly Haberlin (617) 973-8767 (617) 947-8942 Consumer Affairs Issues Consumer Alert on Advance-Fee Loan Scam And Pay Day Loans BOSTON - The Office of Consumer Affairs and the Division of Banks today issued a consumer alert warning consumers about a potential advance-fee loan scam and an illegal pay day loan operation recently advertised in the Boston Metro. ADVANCE-FEE LOAN SCAM Advance-fee loan scams generally involve the promise of easy credit regardless of credit history. Upon completion of a loan application, the entity requires a consumer to wire a percentage of the loan amount, various fees, or payment of insurance in order to secure the loan. Upon collection of the fee, the loan is never delivered. Amcorp Capital is operating a website at www.amcorpcapital.com. The only contact information provided on the web site is a toll free telephone number and an email address. The web site also lists a business address of One Boston Place, Boston, Massachusetts. Amcorp Capital claims to offer mortgage loans, education loans, personal loans, and automobile loans. This entity is not licensed by the Division of Banks and calls to the company have not been returned. An investigation by the Division of Banks has determined that no such business is located at the One Boston Place address. Moreover, the Amcorp Capital’s web site was apparently created on April 11, 2007. Similar to other advance-fee loan scams, the website promotes the availability of easy credit regardless of credit history. Based upon discussions with consumers, Amcorp apparently requires, upon completion of a loan application, that a percentage of the loan be paid up front directly via wire transfer. The Office of Consumer Affairs and Division of Banks strongly urges consumers not to do business with this entity. “This has all the earmarks of an advance-fee loan scam,” noted Director of Consumer Affairs Daniel C. Crane. “Consumers should know that no legitimate lender would require an upfront payment to secure a loan. Consumers should also be extremely cautious when dealing with companies that you do not know. All efforts should be made to safeguard your personal information such as bank account, credit card, or social security numbers. For more information on advance loan scams please see information from the Federal Trade Commission available at http://www.ftc.gov/bcp/conline/pubs/tmarkg/loans.shtm. ILLEGAL PAY DAY LENDER Director Crane also announced that Commissioner of Banks Steven L. Antonakes had sent a letter to the Boston Metro requesting that the publication cease accepting print advertisements from pay day lenders. Commissioner Antonakes sent a similar letter to the Boston Metro in February 2005 and the newspaper, until recently, had not run advertisements for pay day lenders. “Pay day loans carry exorbitant interest rates and can quickly lead consumers into escalating debt,” said Director Crane. “There is also a high risk of identity theft as this company’s advertisement provides virtually no identifying information.” Commissioner Antonakes added, “There are no payday lenders licensed or based in Massachusetts. Under the state’s small loan law, annual interest rates on these loans are capped at 23% and fees are limited to $20. Pay day lenders typically charge annual percentage rates averaging 300 percent and fees averaging $30.” Pay day loans are short term, small sum, high rate, unsecured personal loans that use consumer checking accounts (either post-dated checks or electronic access) to secure repayment of the amount borrowed. Repayment of the full amount and lender fees are typically due within 14 days or with the borrower's next paycheck. Partial payments are rarely allowed so if a borrower can't repay the full amount within the required timeframe, the loan is usually rolled over for additional periods of time and additional fees. If you believe you have been a victim of this advance-fee loan scam or pay day loan operation, call the Division of Banks’ Consumer Assistance Unit at 1-800-495-BANK (2265). DON'T FALL FOR THIS COMPANY!!!

A) They also work under the web address www.amcapitalloans.com which has a physical address of 41 Marietta st nw in atlanta, ga. There is no such company in this building. DO NOT SEND THEM MONEY! No one should have to pay money to receive money. I just lost $1000 to them so I speak from hard learned experiance. I'm making it a priority to see them shut down. Post to every website you can find, call the AG off ice in you state and send a report to the BBB. None of the above can return your money, but the word will get out faster and maybe they'll be found.

No docs loan/stated income home loans?

Q) I need some help with no docs/stated income home loans. My husband and I are in the process of getting pre-approved for a home loan. I was assigned a loan officer that asked for all documents, W-2, pay stub, bank statements, 401K. I provided him with all documents. He told me he will be using a stated loan because the fact the my husband pays child support will disqualified us. My husband credit is in the upper 700's close to 800 for the highest and mine low 700 lowest 706. Now here come the question is this loan officer trying to take advantage of us? If we provided proof of income don't we should be doing a full loan documentation? Oh and he is using my credit score vice my husband and he stated the reason child support again, we were approved already for a mortgage but the loan officer was not honest and we backed out of the deal and child supports was never an issue. I live in the San Diego, CA area. Can I make this loan officer use my husband score and full loan doc? Thx

A) Without knowing the full scenario although you described it very well I would state that it may be easier for both of you to go no doc because you dont have to verify the history of your financials. No doc loans are for the very elite FICO score persons who can qualify. Yet, be careful that you are not getting hit with rate charges because you are going No Doc. Some pro's to going No Doc are Quicker Funding Times and Closing Times over the traditional full doc. Child Support is such a stickler to banks and lenders that it can mess up the process of closing a loan. Make sure you can sit down with the loan officer or have the LO answer all your questions in regards to why it benifits you to go No Doc over Full Doc. If he/she cannot explain to you in a way that you can understand than get yourself another LO. Good luck.

Quicken Loans?

Q) I've been dealing with Quicken Loans, pre-approval, "locked" in rate, etc. They sent me the final details and all of a sudden my loan changed from a 30 year fixed to a 30 year "interest only" loan. They did not tell me it was going from a normal loan to an interest only loan. I also caught her in a lie. She stated she was Eastern Time and saying up "just as late" as me to work on this loan. Then, she left a message saying "Well, you're a few hours ahead of my time zone". She also joked with me on the phone on how they have other people vote for the Quicken Loans person who has been answering questions on this site. It makes them look like people "approved" of the question when it's just there other buddies at there company voting on the answers. This just baits new people into their loans. Please stay away from this company. I guess I am just wondering if anyone has had the same experiences I had. I don't want a response from the fake quicken loan lackeys.

A) You've addressed two things in your question, a problem with your loan and Quicken Loans "scamming" on Answers, so I'll deal with the most important one first - your loan. And I promise you, I'm no fake Quicken Loans lackey. I'm the Home Loan Guru and I work for Quicken Loans, which is an official Yahoo Answers Knowledge Partner. I'm sorry to hear about your problems with your loan and I'm sure that your mortgage banker can work out any issues you are having. I hope you have specifically explained to her that you want a fixed-rate loan and not an "interest-only" mortgage. If you don't feel like you are getting 100% of the service you feel is required, ask to speak to her director of mortgage banking. If they don't help you to your satisfaction, you can call Quicken Loans Client Relations at 800-863-4332 and someone will help you with your problem. Customer service and customer satisfaction are not just a theory with us. It's the duty of every banker to completely give the best service possible. If you want, you can contact me through my profile and I'll personally look into your problem for you. I assure you that no one is intentionally trying to scam you. And regarding the time zone issue, we do have an office in Scottsdale, Arizona, so it's possible your banker works there. But the vast majority work in either Detroit or Cleveland in the eastern zone. Now regarding your banker telling you that Quicken Loans bankers vote for our answers. I've never heard that and I'd actually like to speak with your banker, so please do get in touch with me if you don't mind and give me her name. I'm curious as to why she would tell you something that is so untrue. In fact, most of our answers get just a few votes and we have over 2,500 bankers and 5,000 total employees so if we were instructing our employees to "fake" votes, we would be having a lot more votes than we are getting. Yahoo Answers didn't make us a Knowledge Partner because they think we are being untruthful in our answers and questions and voting. We are truthful and we answer questions with real information, not spam junk. I'm sorry if you feel otherwise, but it just isn't true. And again, I'm sorry to hear about your problems with your loan. I urge you to please get in touch with your banker, our Client Relations team, or me and we will address your loan problems to your satisfaction. You should never have to settle for a loan that isn't 100% what you want and expect. We will take care of your problem. Please get in touch with us.

Loan officers will be held responsible for Stated Loans gone bad?

Q) This question is posed to mortgage industry professionals (consumers can chime in also). There is a new required document for stated loans coming to the industry. It is a Predisclosure Questionaire form that must be signed by the originator and borrower that basically says: The income you are stating is what you trully make You understand the terms of the loan and your broker explianed to you thoroughly (and so on). This form will then be used after the loan closes for the Lender to call the Borrower and verify the info they initially gave. If the loan goes EPD the borrower will be called again and the questionaire will be re-evaluated. If anything is false the LOAN OFFICER will be buying back the loan. Whether you've stated $1 more than what they make or more, it is still that. Stated. A statement, no matter wage earner or self employed. Otherwise you would have taken them full document so please do not get up on your high horse. Has anyone else heard this?

A) I've heard the gov't is going to come down hard on the mortgage brokers - but not on banks. Hmmm....sounds fishy. Stated income is stated income regardless of what institution got the loan for you. It is clear that the banking industry has paid off many politicians so they will be excluded from just about all of the mortgage legislation going around right now. Another sad situation in a nation that continues to spiral downward. Stated income loans have always been a bit shady but a good loan officer will know to back up their numbers with documentation - even if that documentation never leaves the file.

student loans affecting my credit score?

Q) Hey, I am a freshman/sophomore in college paying for it all on my own...which is why I am just about 17,000 dollars in student loan debt as of right now. I have the following loans Federal Stafford Loan 2,625 Federal Stafford UnSubsidized loan 4,000 Federal Stafford Loan 2,625 Sallie Mae Tuition Answer loan 7,500 My question is...while these are all deferred while I am in school, do they affect my credit score at all? I need to make sure my credit stays good so that I can continue to finance my education becuase the financial aid system is a joke. If having these debts sitting on my credit is damaging, then I am in jepordy of not being able to complete my college education...somone please let me know. my biggest concern is that I need to be able to get the tuition answer loan again in the future. Thank You.

A) Federal student loans do not affect your credit negatively unless you are more than 30 days late or miss payments. If you make your payments on time, they will only have a positive affect on your credit.

Private student loans to move out of my parent's house?

Q) Hi. I'm looking for information on private student loans. My main issue is that the loan will be strictly for living expenses, not tuition or books. My mother is willing to pay for my tuition and books but she is not willing to co-sign my loan and we can no longer live in the same house. I need a private loan to pay moving expenses (first, last and security, phone, electricity and internet deposits) plus future living expenses (food, gas, rent, etc). My credit is at least good, maybe excellent due to a previous student loan that was paid off (always on time). I am not currently employed since I am a half-time to full-time student (depending on the semester). So far I am clueless on loans even though I have read many bank loan website faqs. Any and all advice appreciated (except recommending your personal loans - no ty, I want a well known trusted bank). If you can foresee any difficulties for me, have any advice, etc, it will be much appreciated. I don't want to get screwed on interest

A) I would recommend that you first apply for a federal student loan. These loans do not require co-signer or credit checks, and have very low interest rates and very leniant repayment terms. A federal student loan is very limited though, and therefore will definitely not cover all the expenses you have described. This is where the private loan comes in. You can pretty much apply for a private education loan through any major bank (Citibank, Wells Fargo, Bank of America), so you might want to first check with the bank that you currently bank with. Just complete the application, they will check your credit and let you know of any other required documents, then make you an offer of the amount and interest rate you are approved for. Then, they will need to request your school to certify the loan. This means that the school verifies that you are enrolled in the minimum number of units and that your awards do not exceed your schools estimated cost of attendance. Other than banks, you can check with lending companies such as Sallie Mae, Nelnet, or The Education Resource Institute (TERI).