How to become debt free? Do you make any plan before taking or apply loan? How does your repayment sechedule effect your financial? This is common question about to become debt free or loan financing.
Loan is an arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk).
Refinancing is to provide new financing or new financing for, as by discharging a mortgage with the proceeds from a new mortgage obtained at a lower interest rate
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collacteral for the loan.
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 defaults 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.
Unsecured loan are monetary loans that are not secured against the borrower's assets. These may be available from financial institutions under many different guises or marketing packages such as credit card debt,personal loans, bank overdrafts, credit facilities or lines of credit and corporate bonds. The interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law.
Refinancing is to provide new financing or new financing for, as by discharging a mortgage with the proceeds from a new mortgage obtained at a lower interest rate
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collacteral for the loan.
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 defaults 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.
Unsecured loan are monetary loans that are not secured against the borrower's assets. These may be available from financial institutions under many different guises or marketing packages such as credit card debt,personal loans, bank overdrafts, credit facilities or lines of credit and corporate bonds. The interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law.
No comments:
Post a Comment