Such loans are either unsecured, or secured by the asset purchased or by a co-signor (guarantor). Unsecured loans (called signature loans) are advanced on the basis of the borrower’s credit-history and ability to repay the loan from personal income. Repayment is usually through fixed amount installments over a fixed term. Also called consumer loan.
As student loan is a sum of money that a college student borrows from either the government or a private lender to help pay for college expenses. student loans and financial aid can be difficult enough without having to deal with confusing terminology. Our helpful glossary explains the ins and outs in clear language that anyone can understand.
Unsecured loans are loans that are approved without the need for collateral. Instead of pledging assets, borrowers qualify based on their credit history and income. Lenders do not have the right to take physical assets (such as a home or vehicle) if borrowers stop making payments on unsecured loans.
A loan application fee is a fee charged to a potential borrower for processing an application for a loan. Loan application fees can be required for all types of loans and are intended to pay for the.
A loan fee is any fee associated with a loan or credit card that does not include the interest rate. There are many kinds of fees associated with borrowing money. Any fee that you’re charged for borrowing money through a loan or credit card, that isn’t the interest rate, is considered a loan fee.
Are you confused by some of the terms and phrases used by auto loan lenders or at the dealership? Get up to speed on all of the car loan definitions with the.
Standard repayment plans for federal student loans set a timeline of 120 months until payoff, but the minimum monthly payments are $50. In this example, it would take me much less time (and much less money) to pay back a subsidized loan vs. an unsubsidized loan.
A loan is a liability, meaning the lender has a claim on a company’s assets. Loan payments due within one year are generally classified as short-term debt on a company’s balance sheet. Loan payments due in more than one year are considered long-term debt.