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Financeis the science of fundsmanagement.[1]The general areas of finance are business

finance,personal finance, andpublic finance.[2]Finance includes savingmoney and often

includes lending money. The field of finance deals with the concepts of time,moneyand riskand

how they are interrelated. It also deals with how money is spent and udgeted.

Finance works most asically through individuals and usiness organi!ations depositingmoney in

aank. The ank then lends the money out to other individuals or corporations

forconsumptionor investment, and chargesintereston the loans.

"oans have ecome increasingly packaged for resale, meaning that an investor uys the loan

#det$ from a ank or directly from a corporation. %onds are det sold directly to investors from

corporations, while that investor can then hold the det and collect the interest or sell the det on

asecondary market. %anks are the main facilitators of funding through the provision of credit,

although private e&uity, mutual funds,hedge funds, and other organi!ations have ecome

important as they invest in various forms of det. Financialassets,known as investments,

are financially managedwith careful attention to financial risk managementto control financial

risk. Financial instrumentsallow many forms of securiti!edassets to etradedonsecurities

e'changessuch asstock e'changes, including detsuch as ondsas well as e&uityin pulicly(

traded corporations.[dubiousdiscuss]

)entral anks act as lenders of last resortand control the money supply, which affects the

interest rates charged. *s money supply increases, interest rates decrease.[+]

Finance is the set of activities dealing with the management of funds. ore specifically, it is thedecision of collection and use of funds. It is a ranch of economics that studies the management

of money and other assets.

Finance is also the science and art of determining if the funds of an organi!ation are eing used

properly. Through financial analysis, companies and usinesses can take decisions and

corrective actions towards the sources of income and the e'penses and investments that need to

e made in order to stay competitive.

FINANCE IS THE LIFEBLOOD OF BUSINESS

Finance is the concept of managing money. ost peoples personal finances really suck right nowdue to the economy. -ery few can pay their ills, orrow money much less save right now.Finance

the system that includes the circulation of money, the granting of credit, the making ofinvestments, and the provision of anking facilities

the science or study of the management of funds

http://www.merriam-webster.com/cgi-bin/dictionary?book=Dictionary&va=finance

http://en.wikipedia.org/wiki/Fundinghttp://en.wikipedia.org/wiki/Finance#cite_note-0%23cite_note-0http://en.wikipedia.org/wiki/Finance#cite_note-0%23cite_note-0http://en.wikipedia.org/wiki/Finance#cite_note-1%23cite_note-1http://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Timehttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Secondary_markethttp://en.wikipedia.org/wiki/Secondary_markethttp://en.wikipedia.org/wiki/Credithttp://en.wikipedia.org/wiki/Credithttp://en.wikipedia.org/wiki/Private_equityhttp://en.wikipedia.org/wiki/Mutual_fundshttp://en.wikipedia.org/wiki/Mutual_fundshttp://en.wikipedia.org/wiki/Hedge_fundshttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Financial_risk_managementhttp://en.wikipedia.org/wiki/Financial_riskhttp://en.wikipedia.org/wiki/Financial_riskhttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Securitizationhttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Securities_exchangehttp://en.wikipedia.org/wiki/Securities_exchangehttp://en.wikipedia.org/wiki/Securities_exchangehttp://en.wikipedia.org/wiki/Securities_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Wikipedia:Disputed_statementhttp://en.wikipedia.org/wiki/Wikipedia:Disputed_statementhttp://en.wikipedia.org/wiki/Wikipedia:Disputed_statementhttp://en.wikipedia.org/wiki/Talk:Finance#The_leadhttp://en.wikipedia.org/wiki/Talk:Finance#The_leadhttp://en.wikipedia.org/wiki/Talk:Finance#The_leadhttp://en.wikipedia.org/wiki/Lender_of_last_resorthttp://en.wikipedia.org/wiki/Lender_of_last_resorthttp://en.wikipedia.org/wiki/Money_supplyhttp://en.wikipedia.org/wiki/Finance#cite_note-2%23cite_note-2http://www.merriam-webster.com/cgi-bin/dictionary?book=Dictionary&va=financehttp://en.wikipedia.org/wiki/Fundinghttp://en.wikipedia.org/wiki/Finance#cite_note-0%23cite_note-0http://en.wikipedia.org/wiki/Finance#cite_note-1%23cite_note-1http://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Timehttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Secondary_markethttp://en.wikipedia.org/wiki/Credithttp://en.wikipedia.org/wiki/Private_equityhttp://en.wikipedia.org/wiki/Mutual_fundshttp://en.wikipedia.org/wiki/Hedge_fundshttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Investmenthttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Financial_risk_managementhttp://en.wikipedia.org/wiki/Financial_riskhttp://en.wikipedia.org/wiki/Financial_riskhttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Securitizationhttp://en.wikipedia.org/wiki/Trader_(finance)http://en.wikipedia.org/wiki/Securities_exchangehttp://en.wikipedia.org/wiki/Securities_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Wikipedia:Disputed_statementhttp://en.wikipedia.org/wiki/Talk:Finance#The_leadhttp://en.wikipedia.org/wiki/Lender_of_last_resorthttp://en.wikipedia.org/wiki/Money_supplyhttp://en.wikipedia.org/wiki/Finance#cite_note-2%23cite_note-2http://www.merriam-webster.com/cgi-bin/dictionary?book=Dictionary&va=finance

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The field of finance refers to the concepts of time, money and risk and how they are interrelated.The term /finance/ may thus incorporate any of the following

The study of money and other assets

The management and control of those assets

0rofiling and managing proect risks

The science of managing money

The industry that delivers financial services

*s a ver, /to finance/ is to provide funds for usiness or for an individuals large purchases #car,home, etc.$.

http://en.wikipedia.org/wiki/Finance

Analysis of

Decision problems involving the allocation of resources over time In a world of uncertainty Usually in the context of

Decisions made by firms

Investors Etc.

Different Finance types explained

The Drive Team, drive.com.au, March 28, 2007

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Lease or loan !hattel or cash "nderstandin# the different types of carfinance $ill save you money in the lon# run.

!%&'(&T)%&*L L%*&The easiest way to get car finance is to go to a bank or finance company and take

out a loan, which is usually secured against the vehicle itself. ost loans fromfinance companies must be paid off over two to five years, although banks offer

personal loans that can be repaid over a longer period.!utomotive loans are generally set at a fi"ed interest rate, which simplifies budgeting

for repayments. #ne of the biggest factors behind the record sales of new cars has

been the low interest rate environment and the ability of consumers to borrowagainst the e$uity in their homes to buy new cars.

+(-%&*L L(*-(

! personal lease basically means you rent the car for a given period %usually one tofive years& and make monthly repayments as you would when you are renting a

house.The big difference is that at the end of the agreed rental period, the car may be sold

or, in some cases, the finance company may take it back and sell it as a used car.

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The personal lease is generally used by people who will use their car for private orhousehold use more than '( per cent of the time, although some ta" deductions may

be available if the vehicle is also used for business purposes.

)( +"!*-(

The hire purchase option is often used by small businesses because of the fle"ibilityit offers. !s with a lease you are obligated to buy the car by making a final payment

at the end of the agreedhire purchase period. This payment is known as the balloon payment.

The hire purchase option gives a business the ability to arrange the deal in such away that the monthly repayments are suitable for the business)s cash*flow and

budget + by increasing the sie of the deposit or balloon payment, the monthlypayments can be made smaller.

This is handy for businesses that are starting up and have a lot of different calls ontheir cash*flow. some ta" deductions may be available for depreciation and interest

charges.

%+(*T)&/ L(*-(

This is the best option for the business that runs its vehicles hard and turns them

over fre$uently, such as a company with sales representatives or delivery vehiclesthat are constantly on the road.-nder an operating lease, the financing company retains ownership of the vehicle

and provides the customer with e"clusive use of the vehicle for one to five years inreturn for lease rental payments + ust like a long*term hire car.

/ back to previous

&e$sDifferent Finance types explained

The Drive Team, drive.com.au, March 28, 2007

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Lease or loan !hattel or cash "nderstandin# the different types of car

finance $ill save you money in the lon# run.0mportantly, the user does not have to worry about the residual value at the end of

the lease and the finance company bears the risk of losing money on the resale ofthe vehicle. #perating leases will not show up as assets on the balance sheet, so

vehicle borrowing costs will not affect gearing levels. 0n addition, lease payments arefully ta"*deductible, e"cept for lu"ury vehicles.

!*TT(L M%T/*/(This financing option suits businesses that account for their operations on a cash

basis.0t works the same as a hire purchase agreement the customer makes a seriesof monthly payments, then a final balloon payment. 0t also offers a great deal of

fle"ibility, because the buyer is able to set the length of the lease payment andadust the monthly repayments by increasing or decreasing the amount paid as a

deposit or balloon payment.

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-nder a hire purchase agreement, businesses are allowed to claim back some or allof the ST contained in the price of the vehicle. 3ut where a business that uses an

accrual accounting system can claim the ST back in one 3usiness !ctivityStatement, businesses that use a cash accounting system must claim the ST over

the full term of the finance contract.

This can create cash*flow problems and adds to a company)s administrative burden.

3ut the ta" office has ruled that using a chattel mortgage allows a cash business toclaim the ST back in one hit. !ndrew ibson, general manager of sales and

marketing for 34 5inancial Services, says 60t)s come to the fore because of thecashflow benefits for traders.7

%T( %+T)%&-5inancing companies have e"panded their product offerings in the past few years,

and many of the 8uropean mar$ues + including 9olkswagen, :aimler;hrysler and34 + follow the e"ample set by their parent companies, which often offer

customers a complete range of banking and financial services products.0n !ustralia, automotive financing companies offer products including insurance, fleet

management, maintenance, fuel cards and even credit cards.

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Overdraft* popular form of finance ecause it has the advantages of availaility, convenience and fle'iility. 3owever,ecause interest rates are high, it should only e used for short(term re&uirements such as funding workingcapital. Find out more aout 4verdraft.

Bank term loansThese provide fi'ed(term finance for longer periods. They are often secured y a charge against companyassets and re&uire you to sign legally inding covenants. Find out more aout our "oans and Financeproducts

Asset-ased financeThis descries financing an asset over its estimated life span using the asset as security for the loan. It cane structured so that the orrower has the sole right to use the asset and ownership transfers to theorrower at the end of the loan period. Find out more aout our*sset Financeproducts

!eceivales FinanceThis form of finance uses outstanding customer invoices as security. Find out more aout 5eceivalesFinance.

Invoice disco"ntin#6imilar to 5eceivales Finance, this is usually only offered to larger companies with strong creditmanagement systems.

An#el f"ndin#*n individual invests in a company in return for shares in the company.

$ent"re ca%italThere are organisations that specialise in investing in un&uoted companies which they elieve will offer highreturns to investors. There is strong competition for this type of finance and you should only consider it afterassessing all the alternatives.

&ersonal reso"rcesThese include personal savings, money orrowed from family and friends, or profits generated y theusiness.

Need for Financial Statement Anal'sis

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Financial statement analysisis used to identify the trends and relationships between

financial statement items. 3oth internal management and e"ternal users %such as

analysts, creditors, and investors& of the financial statements need to evaluate a

company

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:hether youre a do(it(yourself or rely on guidance from an investment professional, learningcertain fundamental financial statement analysis skills can e very useful ( its certainly not ustfor the e'perts. 4ver thirty years ago, usinessman 5oert Follet wrote a wonderful little ookentitled /3ow To 9eep 6core In %usiness/ #1;for now, simply make a permanent mental note that the cash flow statement contains criticallyimportant analytical data. #To learn more, check outReading The Balance Sheet, UnderstandingThe Income StatementandThe Essentials ! "ash Flo#.$

+no,in# ()ats Be)ind t)e N"mersThe numers in a companys financials reflect real world events. These numers and the financialratios?indicators that are derived from them for investment analysis are easier to understand ifyou can visuali!e the underlying realities of this essentially &uantitativeinformation. For e'ample,efore you start crunching numers, have an understanding of what the company does, itsproducts and?or services, and the industry in which it operates.

T)e Diversit' of Financial !e%ortin#@ont e'pect financial statements to fit into a single mold. any articles and ooks on financialstatement analysis take a one(si!e(fits(all approach. The less(e'perienced investor is going to getlost when he or she encounters a presentation of accounts that falls outside the mainstream orso(called /typical/ company. 6imply rememer that the diverse nature of usiness activitiesresults in a diversity of financial statement presentations. This is particularly true of the alance

sheet> the income and cash flow statements are less susceptile to this phenomenon.

T)e C)allen#e of Understandin# Financial .ar#onThe lack of any appreciale standardi!ation of financial reporting terminology complicates theunderstanding of many financial statement account entries. This circumstance can e confusingfor the eginning investor. Theres little hope that things will change on this issue in theforeseeale future, ut a good financial dictionary can help consideraly.

Acco"ntin# is an Art/ Not a ScienceThe presentation of a companys financial position, as portrayed in its financial statements, is

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influenced y management estimates and udgments. In the est of circumstances, managementis scrupulously honest and candid, while the outside auditors are demanding, strict anduncompromising. :hatever the case, the imprecision that can e inherently found in theaccounting process means that the prudent investor should take an in&uiring and skepticalapproach toward financial statement analysis. #For related content, see $on%t Forget To ReadThe &ros'ectus(and)o# To Read Footnotes * &art + E-aluating Accounting Ris..$

T,o +e' Acco"ntin# ConventionsAenerally accepted accounting principles#A**0$ are used to prepare financial statements. Thesum total of these accounting concepts and assumptions is huge. For investors, a asicunderstanding of at least two of these conventions ( historical cost and accrual accounting( isparticularly important. *ccording to A**0, assets are valued at their purchase price #historicalcost$, which may e significantly different than their current market value. 5evenues are recordedwhen goods or services are delivered and e'penses recorded when incurred. Aenerally, this flowdoes not coincide with the actual receipt and disursement of cash, which is why the cash flowecomes so important.

Non-Financial Statement InformationInformation on the state of the economy, industry and competitive considerations, market forces,technological change, and the &uality of management and the workforce are not directly reflected

in a companys financial statements. Investors need to recogni!e that financial statement insightsare ut one piece, aleit an important one, of the larger investment information pu!!le.

Financial !atios and IndicatorsThe asolute numers in financial statements are of little value for investment analysis, whichmust transform these numers into meaningful relationships to udge a companys financialperformance and condition. The resulting ratios and indicatorsmust e viewed over e'tendedperiods to reflect trends. 3ere again, eware of the one(si!e(fits(all syndrome. 8valuativefinancial metrics can differ significantly y industry, company si!e and stage of development.

Notes to t)e Financial StatementsIt is difficult for financial statement numers to provide the disclosurere&uired y regulatoryauthorities. 0rofessional analysts universally agree that a thorough understanding of the notes to

financial statementsis essential in order to properly evaluate a companys financial condition andperformance. *s noted y auditors on financial statements /the accompanying notes are anintegral part of these financial statements./ Take these noted comments seriously. #For moreinsight, seeFootnotes Start Reading The Fine &rint.$

T)e A"ditors !e%ort0rudent investors should only consider investing in companies with audited financial statements,which are a re&uirement for all pulicly traded companies. %efore digging into a companysfinancials, the first thing to do is read the auditors report. * /clean opinion/ provides you with agreen light to proceed. Bualifying remarks may e enign or serious> in the case of the latter, youmay not want to proceed.

Consolidated Financial Statements

Aenerally, the word /consolidated/ appears in the title of a financial statement, as inaconsolidated alance sheet. )onsolidation of a parent company and its maority(owned #morethat CDE ownership or /effective control/$ susidiaries means that the comined activities ofseparate legal entities are e'pressed as one economic unit. The presumption is that aconsolidation as one entity is more meaningful than separate statements for different entities.

The financial statement perspectives provided in this overview are meant to give readers the igpicture. :ith these considerations in mind, eginning investors should e etter prepared to copewith learning the analytical details of discerning the investment &ualities reflected in a companysfinancials.

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Financial statements#or financial re%orts$ are formal records of the financial activities of a

usiness, person, or other entity. In %ritish 8nglish,including nited 9ingdom company law,

financial statements are often referred to as acco"nts, although the term financial statements is

also used, particularly y accountants.

Financial statements provide an overview of a usiness or persons financial condition in oth

short and long term. *ll the relevant financial information of a usiness enterprise, presented in a

structured manner and in a form easy to understand, are called the financial statements. There

are four asic financial statements[1]

1. Balance s)eetalso referred to as statement of financial position or condition, reports on

a companys assets,liailities,and4wnership e&uityat a given point in time.

2. Income statement also referred to as 0rofit and "oss statement #or a /0G"/$, reports on

a companys income, e'penses, and profits over a period of time.0rofit G "oss account

provide information on the operation of the enterprise. These include sale and the

various e'penses incurred during the processing state.

+. Statement of retained earnin#s e'plains the changes in a companys retained earnings

over the reporting period.

. Statement of cas) flo,s reports on a companys cash flow activities, particularly its

operating, investing and financing activities.

For large corporations, these statements are often comple' and may include an e'tensive set

of notes to the financial statementsand management discussion and analysis. The notes typically

descrie each item on the alance sheet, income statement and cash flow statement in further

detail. Hotes to financial statements are considered an integral part of the financial statements.

Loans And The Meaning Of Them

A oan is a debt that is !s!ay re"!ired to be repaid. #here is a borrower and a ender invoved

in the oan and most often the oan is repaid with interest. $oans have evoved over the years

ike any good ind!stry wo!d.

$et%s take a ook at the different types of oans and the terminoogy invoved in getting a oan.

http://en.wikipedia.org/wiki/British_Englishhttp://en.wikipedia.org/wiki/British_Englishhttp://en.wikipedia.org/wiki/United_Kingdom_company_lawhttp://en.wikipedia.org/wiki/United_Kingdom_company_lawhttp://en.wikipedia.org/wiki/Accountanthttp://en.wikipedia.org/wiki/Financial_statements#cite_note-0%23cite_note-0http://en.wikipedia.org/wiki/Financial_statements#cite_note-0%23cite_note-0http://en.wikipedia.org/wiki/Balance_sheethttp://en.wikipedia.org/wiki/Balance_sheethttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Legal_liabilityhttp://en.wikipedia.org/wiki/Legal_liabilityhttp://en.wikipedia.org/wiki/Legal_liabilityhttp://en.wikipedia.org/wiki/Ownership_equityhttp://en.wikipedia.org/wiki/Ownership_equityhttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Statement_of_retained_earningshttp://en.wikipedia.org/wiki/Statement_of_cash_flowshttp://en.wikipedia.org/wiki/Statement_of_cash_flowshttp://en.wikipedia.org/wiki/Notes_to_the_financial_statementshttp://en.wikipedia.org/wiki/Notes_to_the_financial_statementshttp://en.wikipedia.org/wiki/British_Englishhttp://en.wikipedia.org/wiki/United_Kingdom_company_lawhttp://en.wikipedia.org/wiki/Accountanthttp://en.wikipedia.org/wiki/Financial_statements#cite_note-0%23cite_note-0http://en.wikipedia.org/wiki/Balance_sheethttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Legal_liabilityhttp://en.wikipedia.org/wiki/Ownership_equityhttp://en.wikipedia.org/wiki/Income_statementhttp://en.wikipedia.org/wiki/Statement_of_retained_earningshttp://en.wikipedia.org/wiki/Statement_of_cash_flowshttp://en.wikipedia.org/wiki/Notes_to_the_financial_statements

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A oans are created based on the Ann!a ercentage 'ate or A' for short. #his is the interest

rate that wi be paid on a oan. A' makes it easier for cons!mers to compare enders and

their oan options. (nterest and fees are how enders make their money.

)hen a oan is created it becomes debt to the borrower. Debt is something that is owed. A

debt is !s!ay granted with the borrower e*pected to pay it back p!s interest. #here are

many different types of debts+ b!t in this artice we want to ook at oans.

#oday there are mainy two types of oans+ sec!red and !nsec!red. A sec!red oan is most

cosey associated with a mortgage oan. #he ender is oaning money to b!y the home with

the home itsef as sec!rity for the oan. (f the borrower defa!ts the mortgage ender can

forecose on the home and !se the proceeds to pay back the oan.

,ar oans can be sec!red oans as we. #his is known as a tite oan. As ong as the payments

are on time the oan is fine. nce the borrower begins to defa!t on their payments the a!to

ender may reposes the car and se it to pay off the oan. ince the ender owns the tite they

have sec!rity in the a!tomobie and can do this.

An !nsec!red oan is defined as a oan that is not backed by any coatera. An !nsec!red oan

is a greater risk to the ender and generay re"!ires better credit to receive. ome !nsec!red

oans wi re"!ire a co-signer who is responsibe to pay for the oan if the borrower does not

make the payments.

,redit ,ards are a type of !nsec!red oans and are revoving charges where interest is

charged if the f! baance is not paid off each month.

t!dent oans are another type of oan. t!dent oans are oans offered to st!dents to assist in

payment of the costs of professiona ed!cation. #hese oans !s!ay carry ower interests than

other oans and are !s!ay iss!ed by the government.

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ften they are s!ppemented by st!dent grants which do not have to be repaid. eca!se of

the high cost of coege+ and trade schoos most st!dents can "!aify easier for a st!dent oan

or a parent oan to hep pay it back.

#he Free Appication for Federa t!dent Aid is known as FAFA. #his is a form that can be

fied o!t every year by st!dents 0both !ndergrad!ate and grad!ate1 and their parents to

determine their eigibiity for federa st!dent financia aid. (n addition+ most states and schoos

!se information from the FAFA to award non-federa aid.

#he FAFA consists of n!mero!s "!estions regarding the st!dent%s finances+ as we as those of

his or her famiy to determine how m!ch they wi "!aify for.

Aong the ines of st!dent oans are tafford $oans. A tafford $oan is a st!dent oan offered to

st!dents enroed in American instit!tions of higher ed!cation to hep finance their ed!cation.

#he oans are offered !nder #ite (2 of the 3igher 4d!cation Act of 5678 0with s!bse"!ent

amendments1 and are therefore g!aranteed by the 9.. Department of 4d!cation either

directy or thro!gh g!arantee agencies.

(n 56+ ,ongress renamed the Federa ;!aranteed t!dent $oan program the 'obert #.

tafford t!dent $oan program+ in honor of enator 'obert tafford of 2ermont+ for his work on

higher ed!cation.

Another oan that is gaining in pop!arity and credibiity is a payday oan. A payday oan or

paycheck advance is a sma+ short-term oan that heps who is in need of cash before payday.

ayday oans are aso sometimes referred to as cash advances+ and do not re"!ire good credit

to get as ong as yo! have a checking acco!nt and verifiabe income.

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awnbrokers are wiing to end money on the va!e of something. efore payday oans peope

who needed money wo!d take something to a pawnshop and trade it for a sma amo!nt of

money ess the fee the pawnbroker kept. )hen yo! were wiing to repay the pawnbroker yo!

wo!d get yo!r item back.

let have for a limited time> /I will lend you my

car/> /loan me some money/ loan ( loanword a word orrowed from another language> e.g. lit! is a

Aerman word orrowed into modern 8nglishwordnetwe.princeton.edu?perl?wewn

"oan ( In association footall, a loan involves a particular player eingallowed to temporarily play for a clu other than the one he is currently ...en.wikipedia.org?wiki?"oanJ#associationJfootall$

loan ( * sum of money or other valuales or consideration which anindividual, group or other legal entity orrows from another individual,group or legal entity #the latter often eing a financial institution$ with thecondition that it e returned or repaid at a later date #sometimes withinterest ...en.wiktionary.org?wiki?loan

*ny program descried as a loan re&uires repayment, usually with

interest, to the source of the funding. "oans often come from the institutionor private lender. Aenerally, the greater the financial need, the larger theloan. ...www.nacacnet.org?0ulications5esources?steps?*rticles?0ages?Fin*idTerms.asp'

Financial assistance that must e repaid.

www.gprc.a.ca?aout?glossary? 3ousing loans to veterans y anks, savings and loans, or other lenders

that are guaranteed y the -eterans *dministration, enaling veterans to

http://www.google.co.in/url?q=http://en.wikipedia.org/wiki/Loans&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBIQpAMoAA&usg=AFQjCNEEG-0uUZeibzfVvC0NVOu6NarJcwhttp://www.google.co.in/url?q=http://wordnetweb.princeton.edu/perl/webwn%3Fs%3Dloan&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBMQpAMoAQ&usg=AFQjCNF0lg91t_MioAQAW1fVCcsf7TDvGghttp://www.google.co.in/url?q=http://en.wikipedia.org/wiki/Loan_(association_football)&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBQQpAMoAg&usg=AFQjCNEi4TKxynkQ8vpLJAWs-WX5GCt31ghttp://www.google.co.in/url?q=http://en.wiktionary.org/wiki/loan&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBUQpAMoAw&usg=AFQjCNH2mOnKGQHPx8XOIa1hAwP6N9OwtQhttp://www.google.co.in/url?q=http://www.nacacnet.org/PublicationsResources/steps/Articles/Pages/FinAidTerms.aspx&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBYQpAMoBA&usg=AFQjCNEFS424luDa_DrB8BT9e_osg6xt0Ahttp://www.google.co.in/url?q=http://www.nacacnet.org/PublicationsResources/steps/Articles/Pages/FinAidTerms.aspx&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBYQpAMoBA&usg=AFQjCNEFS424luDa_DrB8BT9e_osg6xt0Ahttp://www.google.co.in/url?q=http://www.gprc.ab.ca/about/glossary/&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBcQpAMoBQ&usg=AFQjCNFLoL8Luyb85pf0GR2mtiMbnbX9ZQhttp://www.google.co.in/url?q=http://en.wikipedia.org/wiki/Loans&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBIQpAMoAA&usg=AFQjCNEEG-0uUZeibzfVvC0NVOu6NarJcwhttp://www.google.co.in/url?q=http://wordnetweb.princeton.edu/perl/webwn%3Fs%3Dloan&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBMQpAMoAQ&usg=AFQjCNF0lg91t_MioAQAW1fVCcsf7TDvGghttp://www.google.co.in/url?q=http://en.wikipedia.org/wiki/Loan_(association_football)&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBQQpAMoAg&usg=AFQjCNEi4TKxynkQ8vpLJAWs-WX5GCt31ghttp://www.google.co.in/url?q=http://en.wiktionary.org/wiki/loan&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBUQpAMoAw&usg=AFQjCNH2mOnKGQHPx8XOIa1hAwP6N9OwtQhttp://www.google.co.in/url?q=http://www.nacacnet.org/PublicationsResources/steps/Articles/Pages/FinAidTerms.aspx&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBYQpAMoBA&usg=AFQjCNEFS424luDa_DrB8BT9e_osg6xt0Ahttp://www.google.co.in/url?q=http://www.nacacnet.org/PublicationsResources/steps/Articles/Pages/FinAidTerms.aspx&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBYQpAMoBA&usg=AFQjCNEFS424luDa_DrB8BT9e_osg6xt0Ahttp://www.google.co.in/url?q=http://www.gprc.ab.ca/about/glossary/&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBcQpAMoBQ&usg=AFQjCNFLoL8Luyb85pf0GR2mtiMbnbX9ZQ

8/13/2019 Qais Finance

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uy a residence with little or no down payment.www.lighthouseastract.com?glossary.html

loan ( money lent at interest. * lender makes a /loan/ with the idea that it

will e paid ack as agreed and that interest will e paid for the use of themoney.

www.smalli!.nsw.gov.au?smallusiness?5esources?%usinessKTools?AlossaryKofK%usinessKTerms? loan ( * form of financing wherey you orrow money to purchase a

vehicle.www.wachoviadealer.com?)onsumers?)ustomer6ervice?*uto"oanAlossary?default.asp

loan ( oney orrowed from a lending institution or the @epartment that

must e repaid.https??loanconsolidation.ed.gov?appstatus?help?glossary.shtml

loan ( :hen a lender gives money or property to a orrower, and theorrower agrees to return the property or repay the orrowed money along

with interest, at a predetermined date in the future.investors.div'.com?glossary.cfm * loan is when a person orrows money from a financial institution or

other type of lender with an agreement to pay ack the full amount plusinterest over a period of time. "oans are usually guaranteed with assetslike a vehicle or home. ...www.carfa'.com?@efinitions?Alossary.cfm

* LD1#k$ loan is taken from a LD1#k$ retirement account. )ertain plansallow an individual to withdraw a percentage of an account alance, withset minimum and ma'imum amounts allows. The loan is generally paidack, with interest, through payroll deductions. ...

www.shoe.com?2D1M;2;L2C.html

Student loans are financial aid, along with grants, scholarships, and work*study. Student loans areborrowed money that must be repaid, with interest, ust like car loans and mortgages.8ven with other types of aid, many students have to rely on borrowing a loan to help cover theireducation e"penses. ost students do not receive enough grant and scholarship funding to cover

their college e"penses. !ppro"imately, 1 of financial aid fundin#in the state of Te"as comesfrom education loans.

8ducation loans from different sources have varying terms %e.g., interest rates, repayment plans,fees, and credit worthiness re$uirements&. 5or e"ample, federal Stafford and Perkins loans have no

credit worthiness or cosigner re$uirements and the interest rates are generally lower than othertypes of loans. 4here as, P=-S loans re$uire good credit and have higher interest rates.

* loanis a type of det."ike all det instruments, a loan entails the redistriution of

financialassetsover time, etween the lenderand the orrower.

In a loan, the orrower initially receives or borro#san amount of money, called the'rinci'al, from

the lender, and is oligated to'ay bac.or re'ayan e&ual amount of money to the lender at a

later time. Typically, the money is paid ack in regular installments, or partial repayments> in

an annuity, each installment is the same amount. The loan is generally provided at a cost,

http://www.google.co.in/url?q=http://www.lighthouseabstract.com/glossary.html&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBgQpAMoBg&usg=AFQjCNGeePnCNXmjAExG6D0dULB-u11TRQhttp://www.google.co.in/url?q=http://www.smallbiz.nsw.gov.au/smallbusiness/Resources/Business%2BTools/Glossary%2Bof%2BBusiness%2BTerms/&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBkQpAMoBw&usg=AFQjCNFBcCjZCJTblk6TRAVKVRFSNlZngghttp://www.google.co.in/url?q=http://www.smallbiz.nsw.gov.au/smallbusiness/Resources/Business%2BTools/Glossary%2Bof%2BBusiness%2BTerms/&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBkQpAMoBw&usg=AFQjCNFBcCjZCJTblk6TRAVKVRFSNlZngghttp://www.google.co.in/url?q=http://www.wachoviadealer.com/Consumers/CustomerService/AutoLoanGlossary/default.asp&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBoQpAMoCA&usg=AFQjCNFcb4CibrDRFHWmXQiE0BdL75JCighttp://www.google.co.in/url?q=http://www.wachoviadealer.com/Consumers/CustomerService/AutoLoanGlossary/default.asp&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBoQpAMoCA&usg=AFQjCNFcb4CibrDRFHWmXQiE0BdL75JCighttp://www.google.co.in/url?q=https://loanconsolidation.ed.gov/appstatus/help/glossary.shtml&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBsQpAMoCQ&usg=AFQjCNHvUTTGqrm8LF-f6Y8OS1OhtfUsKghttp://www.google.co.in/url?q=http://investors.divx.com/glossary.cfm%3FFirstLetter%3Dl&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBwQpAMoCg&usg=AFQjCNETCb-h5EssdiNaO86BbL2yCg2mcwhttp://www.google.co.in/url?q=http://www.carfax.com/Definitions/Glossary.cfm&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CB0QpAMoCw&usg=AFQjCNE23iPQSATquJ_WABf_anEE-Zn-5ghttp://www.google.co.in/url?q=http://www.shobe.com/2016929425.html&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CB4QpAMoDA&usg=AFQjCNGwUOAbXuiipQcHAJkr_aoUJtHdNQhttp://www.tgslc.org/pdf/sosa.pdfhttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Assethttp://en.wiktionary.org/wiki/lenderhttp://en.wiktionary.org/wiki/borrowerhttp://en.wiktionary.org/wiki/borrowerhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Annuity_(finance_theory)http://www.google.co.in/url?q=http://www.lighthouseabstract.com/glossary.html&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBgQpAMoBg&usg=AFQjCNGeePnCNXmjAExG6D0dULB-u11TRQhttp://www.google.co.in/url?q=http://www.smallbiz.nsw.gov.au/smallbusiness/Resources/Business%2BTools/Glossary%2Bof%2BBusiness%2BTerms/&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBkQpAMoBw&usg=AFQjCNFBcCjZCJTblk6TRAVKVRFSNlZngghttp://www.google.co.in/url?q=http://www.smallbiz.nsw.gov.au/smallbusiness/Resources/Business%2BTools/Glossary%2Bof%2BBusiness%2BTerms/&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBkQpAMoBw&usg=AFQjCNFBcCjZCJTblk6TRAVKVRFSNlZngghttp://www.google.co.in/url?q=http://www.wachoviadealer.com/Consumers/CustomerService/AutoLoanGlossary/default.asp&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBoQpAMoCA&usg=AFQjCNFcb4CibrDRFHWmXQiE0BdL75JCighttp://www.google.co.in/url?q=http://www.wachoviadealer.com/Consumers/CustomerService/AutoLoanGlossary/default.asp&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBoQpAMoCA&usg=AFQjCNFcb4CibrDRFHWmXQiE0BdL75JCighttp://www.google.co.in/url?q=https://loanconsolidation.ed.gov/appstatus/help/glossary.shtml&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBsQpAMoCQ&usg=AFQjCNHvUTTGqrm8LF-f6Y8OS1OhtfUsKghttp://www.google.co.in/url?q=http://investors.divx.com/glossary.cfm%3FFirstLetter%3Dl&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CBwQpAMoCg&usg=AFQjCNETCb-h5EssdiNaO86BbL2yCg2mcwhttp://www.google.co.in/url?q=http://www.carfax.com/Definitions/Glossary.cfm&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CB0QpAMoCw&usg=AFQjCNE23iPQSATquJ_WABf_anEE-Zn-5ghttp://www.google.co.in/url?q=http://www.shobe.com/2016929425.html&ei=WCIpS7TBJNGHkAWCze30DA&sa=X&oi=define&ct=&cd=1&ved=0CB4QpAMoDA&usg=AFQjCNGwUOAbXuiipQcHAJkr_aoUJtHdNQhttp://www.tgslc.org/pdf/sosa.pdfhttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Assethttp://en.wiktionary.org/wiki/lenderhttp://en.wiktionary.org/wiki/borrowerhttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Annuity_(finance_theory)

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referred to as intereston thedet, which provides an incentive for the lender to engage in the

loan. In a legal loan, each of these oligations and restrictions is enforced y contract, which can

also place the orrower under additional restrictions known as loan covenants. *lthough this

article focuses on monetary loans, in practice any material oect might e lent.

*cting as a provider of loans is one of the principal tasks for financial institutions.For other

institutions, issuing of detcontracts such as ondsis a typical source of funding.

Contents

!hide"

# $ypes of loans

o #.# %ecured

o #.& Unsecured

o #.' Demand

& (oan payment

' Abuses in lending

United %tates taxes

) Income from discharge of

indebtedness

* %ee also

+ ,eferences

0edit1T'%es of loans

0edit1Sec"red

*secured loanis a loan in which the orrowerpledgessome asset #e.g. a car or property$

ascollateralfor the loan.

*mortgage loanis a very common type of det instrument, used y many individuals to

purchase housing. In this arrangement, the money is used to purchase the property. The financial

institution, however, is given security N a lienon the title to the house N until the mortgage is

paid off in full. If the orrower defaultson the loan, the ank 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 e secured y the car, in

much the same way as a mortgage is secured y housing. The duration of the loan period is

consideraly shorter N often corresponding to the useful life of the car. There are two types of

auto loans, direct and indirect. * direct auto loan is where a ank gives the loan directly to a

http://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Loan_covenanthttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Bond_(finance)http://toggletoc%28%29/http://en.wikipedia.org/wiki/Loan#Types_of_loans%23Types_of_loanshttp://en.wikipedia.org/wiki/Loan#Secured%23Securedhttp://en.wikipedia.org/wiki/Loan#Unsecured%23Unsecuredhttp://en.wikipedia.org/wiki/Loan#Demand%23Demandhttp://en.wikipedia.org/wiki/Loan#Loan_payment%23Loan_paymenthttp://en.wikipedia.org/wiki/Loan#Abuses_in_lending%23Abuses_in_lendinghttp://en.wikipedia.org/wiki/Loan#United_States_taxes%23United_States_taxeshttp://en.wikipedia.org/wiki/Loan#Income_from_discharge_of_indebtedness%23Income_from_discharge_of_indebtednesshttp://en.wikipedia.org/wiki/Loan#Income_from_discharge_of_indebtedness%23Income_from_discharge_of_indebtednesshttp://en.wikipedia.org/wiki/Loan#See_also%23See_alsohttp://en.wikipedia.org/wiki/Loan#References%23Referenceshttp://en.wikipedia.org/w/index.php?title=Loan&action=edit&section=1http://en.wikipedia.org/w/index.php?title=Loan&action=edit&section=1http://en.wikipedia.org/w/index.php?title=Loan&action=edit&section=2http://en.wikipedia.org/w/index.php?title=Loan&action=edit&section=2http://en.wikipedia.org/wiki/Secured_loanhttp://en.wikipedia.org/wiki/Secured_loanhttp://en.wikipedia.org/wiki/Pledgeshttp://en.wikipedia.org/wiki/Pledgeshttp://en.wikipedia.org/wiki/Pledgeshttp://en.wikipedia.org/wiki/Collateral_(finance)http://en.wikipedia.org/wiki/Collateral_(finance)http://en.wikipedia.org/wiki/Collateral_(finance)http://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Househttp://en.wikipedia.org/wiki/Lienhttp://en.wikipedia.org/wiki/Default_(finance)http://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Loan_covenanthttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Bond_(finance)http://toggletoc%28%29/http://en.wikipedia.org/wiki/Loan#Types_of_loans%23Types_of_loanshttp://en.wikipedia.org/wiki/Loan#Secured%23Securedhttp://en.wikipedia.org/wiki/Loan#Unsecured%23Unsecuredhttp://en.wikipedia.org/wiki/Loan#Demand%23Demandhttp://en.wikipedia.org/wiki/Loan#Loan_payment%23Loan_paymenthttp://en.wikipedia.org/wiki/Loan#Abuses_in_lending%23Abuses_in_lendinghttp://en.wikipedia.org/wiki/Loan#United_States_taxes%23United_States_taxeshttp://en.wikipedia.org/wiki/Loan#Income_from_discharge_of_indebtedness%23Income_from_discharge_of_indebtednesshttp://en.wikipedia.org/wiki/Loan#Income_from_discharge_of_indebtedness%23Income_from_discharge_of_indebtednesshttp://en.wikipedia.org/wiki/Loan#See_also%23See_alsohttp://en.wikipedia.org/wiki/Loan#References%23Referenceshttp://en.wikipedia.org/w/index.php?title=Loan&action=edit&section=1http://en.wikipedia.org/w/index.php?title=Loan&action=edit&section=2http://en.wikipedia.org/wiki/Secured_loanhttp://en.wikipedia.org/wiki/Pledgeshttp://en.wikipedia.org/wiki/Collateral_(finance)http://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Househttp://en.wikipedia.org/wiki/Lienhttp://en.wikipedia.org/wiki/Default_(finance)

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consumer. *n indirect auto loan is where a car dealership acts as an intermediary etween the

ank or financial institution and the consumer.

* type of loan especially used inlimited partnershipagreements is therecourse note.

* stock hedge loan is a special type of securities lendingwherey the stock of a orrower ishedged y the lender against loss, using options or otherhedgingstrategies to reduce lender risk.

[citation needed]

* pre(settlement loan is a non(recourse det,this is when a monetary loan is given ased on the

merit and awardale amount in a lawsuit case. 4nly certain types of lawsuit cases are eligile for

a pre(settlement loan.[citation needed]This is considered a secured non(recourse det due to the fact if

the case reaches a verdict in favor of the defendant the loan is forgiven.

0edit1Unsec"red

nsecured loansare monetary loans that are not secured against the orrowers assets. These

may e availale from financial institutions under many different guises or marketing packages

credit card det

personal loans

ank overdrafts

credit facilities or lines of credit

corporate onds

The interest ratesapplicale to these different forms may vary depending on the lender and the

orrower. These may or may not e regulated y law. In the nited 9ingdom, when applied to

individuals, these may come under the)onsumer )redit *ct 1;=L.

0edit1Demand

@emand loans are short term loans that are atypical in that they do not have fi'ed dates for

repayment and carry a floating interest rate which varies according to the prime rate. They can e

/called/ for repayment y the lending institution at any time. @emand loans may e unsecured or

secured.[1]

The History of Home Loans

Contributor

http://en.wikipedia.org/wiki/Limited_partnershiphttp://en.wikipedia.org/wiki/Limited_partnershiphttp://en.wikipedia.org/wiki/Limited_partnershiphttp://en.wikipedia.org/wiki/Recourse_notehttp://en.wikipedia.org/wiki/Recourse_notehttp://en.wikipedia.org/wiki/Recourse_notehttp://en.wikipedia.org/wiki/Securities_lendinghttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Nonrecourse_debthttp://en.wikipedia.org/wiki/Nonrecourse_debthttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/w/index.php?title=Loan&action=edit&section=3http://en.wikipedia.org/w/index.php?title=Loan&action=edit&section=3http://en.wikipedia.org/wiki/Unsecured_loanhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Overdrafthttp://en.wikipedia.org/wiki/Corporate_bondhttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Consumer_Credit_Act_1974http://en.wikipedia.org/wiki/Consumer_Credit_Act_1974http://en.wikipedia.org/wiki/Consumer_Credit_Act_1974http://en.wikipedia.org/w/index.php?title=Loan&action=edit&section=4http://en.wikipedia.org/w/index.php?title=Loan&action=edit&section=4http://en.wikipedia.org/wiki/Loan#cite_note-0%23cite_note-0http://en.wikipedia.org/wiki/Loan#cite_note-0%23cite_note-0http://www.ehow.com/members/ds_a2e4de6a-248a-4f34-be55-5586c8b626fe.htmlhttp://en.wikipedia.org/wiki/Limited_partnershiphttp://en.wikipedia.org/wiki/Recourse_notehttp://en.wikipedia.org/wiki/Securities_lendinghttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Nonrecourse_debthttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/w/index.php?title=Loan&action=edit&section=3http://en.wikipedia.org/wiki/Unsecured_loanhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Overdrafthttp://en.wikipedia.org/wiki/Corporate_bondhttp://en.wikipedia.org/wiki/Interest_ratehttp://en.wikipedia.org/wiki/Consumer_Credit_Act_1974http://en.wikipedia.org/w/index.php?title=Loan&action=edit&section=4http://en.wikipedia.org/wiki/Loan#cite_note-0%23cite_note-0

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yessica Anne 4i>abetheHow Contributing Writer

Artice 'ating:0 'atings1

3ome oans are !s!ay the argest oans that cons!mers wi ever make. eca!se ofthis+ it is important to know how home oans started+ the different types of homeoans and the simiarities and differences between them. (n this way+ cons!mers canmake the best decision on which oan is the best for their p!rposes.

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History: Fannie Mae and Freddie Mac5. For many years+ the ony way in which to obtain money to p!rchase a home

was to appy for a conventiona home oan. #his type of oan was obtained thro!gh abank+ credit !nion or other private+ non-government-affiiated financia instit!tion.(n 56@+ the Federa ationa

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Benefits. 3aving different types of home oans to choose from aow more peope to be

abe to own their own home. Depending on the terms and conditions+ it may beeasier to obtain a oan from one entity than from anotherH however+ the same goa isattained: home ownership.

Potential8. As ong as there are financia instit!tions that wi make home oans+ there wi

be the opport!nity for peope to own a home. #here wi probaby be changes+especiay in s!ch areas as interest rates+ simpy beca!se the ho!sing marketchanges at different times+ depending on the nationa economy.

ome Loans and other )nformation

8choice is one of the sites on the internet which is providing the best home loans. There are many

types of home loans and these are as follows

3asic =oans

5i"ed >ate =oans

0nterest #nly

=o :oc

Standard 9ariable >ate

Split >ate

=ine #f ;redit

?o :eposit

5ollowing are the above mentioned loans which one can enoy. The e"planation of all the loans is as

follows

3asic =oans

#ne can go for this type of loan, by getting this loan you can avail the lowest interest rates and thefees of bank as well. The bank fee is also very low. The features are very minimal@ the people donate =oans

0f the person wants to avoid the increase of interest rate than the person should go for the fi"edrate loan because these loans provide the stability in the monthly payments and the stability in theinterest rates mostly it happens between one to five years but after then one can choose for thevariable rate. 4ith the help of the fi"ed rate one can stabilie the amount of budget.

0nterest #nly

These loans are very suitable for the people who are actually investors and like to invest in different

places. Aere the amount of repayment is very low and the investors can get a large amount of

benefit from these loans. =o :oc =oans

5ollowing are some of the features of the loans and also suitable for some specific people and these

are as follows

#ne can get simple and very $uick type of financing from these loans.

The people who are self employed can avail this loan very easily.

The application procedure of the loan is very easy and systematic.

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The paperwork is very less in this type of loan and this thing help the borrower to get the

loan very easily and without any hassle.

The one who is applying for the loan must maintain the proper and clear history of the

credit.

The line of credit is very much common because of the features and also because of the fle"ibility.

Aere the amount of the limit is very much than the original credit cards. ?ot every one can availthese lines because these lines basically offer freedom to the people but not to every one. Aere theinterest rates are actually very much lower than the interest rates on the credit cards. These home

loans can be used for the buying the personal poverty and also to purchase the investmentproperties. So there are many options for the consumers to make a decision for getting the loan.

ortgage loans are very secured loans because to get these loans, one has to give some valuable

asset to the lender. 0f the borrower is not able to pay back the loan then the lender is obliged to getthe valuable given asset on the permanent basis and after that the lender can sell out the propertyto get the money out. #ne can get the real and accurate information about the mortgage home loanfrom the banks and any other financial institutions. The needy people with bad credit can also apply

for the bad credit home loan.

The banks and other financial institutions are providing the home loan rate to the people withoutany discrepancies. The members of the credit unions can avail the home finance facility. Aome loan

refinance is the term which one must know because sometimes it happens that to repay the amountof money taken is very must on urgent basis so the loan refinance helps the person to repay all the

liability. Aome financing is very important term in finance and all the financial loan sites areproviding the information about the home financing.

Aome mortgage loan could be used to repay the amount of loan has taken previously to buy the

loan. #ne can get the loan for the re*establishment and one should know that in the world ofadvancement, you can also go for home improvement loan. These loans one can use for thepurpose of improving the home lifestyle, the structure of the home as well.

There are many financial institutions which are offering the best package for the bad credit homeloans, the person with the bad credit history record and the bad credit report can also gain theadvantages of the home loans. So the fact remain the same that every one should know that fromwhere to search the best package of home loans because without searching it may happen that you

are not able to avail the best offer which is available in the market by the banks or any other

financial institutions. Aome loan interest is the toughest thing in the loan procedure because therepayment of the amount is not big issue but the interest rate is the issue for the customers. Aomeloan calculator is able to define the interest rates and the amount of the payment which the

borrower has to make every month. The calculator provides the accurate figures to the borrowersand the lenders. #ne can get the calculator from offline stores and as well as from online stores. 3utone should buy the calculator from the place which provides the calculator at the lowest rate. 0f youwant to know about the home loan rates you can see the financial magaines and you can also visit

any bank or credit union for the accurate figures.

So now you can not only apply for the car loan etc but also can apply for the home loan. 3ut beforegoing for the loans one should know the reason to have the loan.

3ome loan financing is the money which is orrowed for home. )ome loan !inancingis asicallytaken for the purpose of uying things which are needed for the renovation or for the construction

which high priced. The rate of interest charged for the home loan financing is low. The rates arelow as the lender doesnt lose his money even in case of default of payment.any people spend a great deal of time looking for their home, but neglect to spend muchtime researching options for their home loan. 5inding the perfect home loan is ust asimportant to finding the perfect home because determining the home loan that is right for youcan save you a great deal of money. 4e aim to connect home buyers with a specialist that canhelp them with their specific needs.

Please use our home loan resources to find out more about 5A! loans and the options

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available to you or start the process now by contacting one of our $ualified 5A! home loane"perts. #ur e"perts can help find the right loan for your perfect home.

%vervie$Bour Aome is a place where you rela" after coming back from your day)s tiring work, it is that placewhere you can give time to your family C spend beautiful moments with them. To ac$uire a homewhich can be christened your 6#wn Aouse7 is a life*time decision C has to be taken with a lot of

planning C re$uires huge finances. Bour :ream Aome is not very far away with a Aome =oan whichwill fulfill your :ream into a reality. 4e at :ealD=oansare working constantly to get you the 38ST=oan :eal C have brought a small guide which would answer some important $uestions related toAome =oan C help you decide your loan deal.

hat is a ome loanAome =oan is a Secured =oan offered against the security of a houseEproperty which is funded bythe bank)s loan, the property could be a personal property or a commercial one. The Aome =oan is a

loan taken by a borrower from the bank issued against the propertyEsecurity intended to be boughton the part by the borrower giving the banker a conditional ownership over the property i.e. if theborrower is failed to pay back the loan, the banker can retrieve the lent money by selling theproperty. et more 0nformation on home loan section click !rticles about Aome =oanand Aome =oan

must read.

5or determining home loans eligibility one needs to understand the calculations involved in it.!s calculations are rarely e"plained in a simple form, it can be hard for a layman tounderstand them. 4ith the view to e"plain easily, following is an illustration for thedetermination of homeloaneligibility and the reasons for the same.

8asy onthly 0nstallments i.e. 80 Payments are calculated on the basis of monthly income ofthe individual. Aousing 5inancial ;ompanies %A5;s& consider different percentage ofmonthly incomefor 80 payments for different monthly salary slab. The following table showshow the percentage of monthly salary that is considered for 80 payments depends on the netmonthly salary.

?et onthly Salary

F of salary %monthly& factored in determining 80 payments

3etween >s. G,((1 + H,HHH

D'F1(,((( + 1H,HHH '(F2(,((( + ID,HHH ''FI',((( and greater J(F

!s per the table if an individual is earning 2',((( monthly salary, ''F of his salary will beconsidered for 80 payments. The amount calculated is %''F of 2',(((& is e$ual to >s1I,K'(, which is also known as disposable income.!nd if another individual is drawing salary of >s D',((( per month. 0n his case, >s. 2K,((( willbe considered for 80 payments i.e. J(F of his salary. 0t means that percentage of salaryconsidered for 80 payments rises with the increase in salary and vice versa.!ll A5;s lists in 80 table monthly 80 per lakh for varying tenures andinterest rates, which is

different for every A5;. The eligibility for home loans is determined by 80 per lakh andindividual income available for making 80 payments. =ets understand this with the table

onthly 0ncome %>s&2',(((0ncome available for 80 payments %i.e. ''F of >s 2',(((& or disposable income 1I,K'(>ate of 0nterest %F& G.((Tenure %Brs& 2(80 per lakh %>s& GIJAome loan 8ligibility %>s& 1,JJD,(((

http://www.deal4loans.com/http://www.deal4loans.com/http://www.deal4loans.com/loans/category/home-loan/http://www.deal4loans.com/Contents_Home_Loan_Mustread.phphttp://www.deal4loans.com/Contents_Home_Loan_Mustread.phphttp://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23http://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23http://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23http://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23http://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23http://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23http://www.deal4loans.com/http://www.deal4loans.com/loans/category/home-loan/http://www.deal4loans.com/Contents_Home_Loan_Mustread.phphttp://www.deal4loans.com/Contents_Home_Loan_Mustread.phphttp://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23http://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23http://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23http://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23

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0n the above table rate of interest is GF, tenure is 2( yrs and 80 per lakh is GIJ. 5orcalculating home loan eligibility the disposable income %i.e. >s1I,K'(& is divided by 80 perlakh %i.e. >s GIJ&, which works out to be >s 1,JJD,(((.

This is the fundamental nature of calculating home loan eligibility but some A5;s havedifferent method of calculations. =ike they may consider gross salary instead of net salary for

calculations. !lso for determining income available, they may have different percentagestructure from that of table shown above. 0n case of self*employed persons different methodof calculations are adopted.Some intangible factors are also considered for the eligibility, they are *

L Profession of the individual A5;s have a list of professions, which are negative or blacklisted. Though the list is not official but any individual from these professions face lots ofdifficulties in getting a loan.L Property)s =ocation =ike negative profession there is a list of negative area for which loan

can)t be granted. 5or the loan the property has to be within geographical area defined byA5;s.L 0ndividual Personal :etails These details include individual)sfinancialstatus, his creditrepayments history, saving habits etc. for deciding home loan eligibility.

http://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23http://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23http://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23http://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23http://www.articlesbase.com/business-articles/eligibility-for-home-loan-101181.html#%23

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Doc"ments re2"ired for Home Loan Sanction

ICICI Bank Home Loans, IndiaOs leading Home Loans &rovider, offersattractive interest rates and uneatale enefits to ensure that you getthe est deal. 9eeping your convenience in consideration, we ask youfor minimal mandatory documents for thesanctionin# of your )omeloan, to keep the process totally hassle(free.

:e re&uire the following documents to sanction your home loan

Sanction Doc"ments

)ompleted application form

0hotograph

Fee )he&ue 0hoto Identity 0roof

*ge 0roof

6ignature -erification 0roof

5esidence *ddress 0roof

Doc"ment for t)e Salaried

"ast + monthsO 6alary 6lip

Form 1M

%ank 6tatement for the last M months from 6alary *ccount

5epayment Track record of e'isting loans ? "oan closure letter

Doc"ment for t)e Self-em%lo'ed

Income Ta' 5eturn ? )omputation of Total Income ? *uditors

5eport ? %alance 6heet ? 0rofit G "oss *ccount certified y)hartered *ccountant for last 2 years #+ years for 3ome 8&uity$#oth for usiness and personal of partners?directors$

%ank statement for the last M months from operating account

5epayment Track record of e'isting loans ? "oan closure letter

%oard 5esolution in case of a company

0roof of e'istence

4ffice *ddress 0roof

0hoto Identity 0roof, 5esidence *ddress 0roof, 6ignature

-erification 6tatement for all the main partners ? directors.

http://www.icicibank.com/Pfsuser/loans/homeloans/hlhomepage.htmhttp://www.icicibank.com/Pfsuser/loans/homeloans/hlhomepage.htm

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3ome loan eligiility norms!bmitted by adminon eptember EE+ E6 I :58 pmE ,omments

Ashish Gupta

A host of factors affect the eigibiity of a potentia borrower. A bank has its own parameters

and criteria to determine the eigibiity and "!ant!m of ho!sing oan. A borrower wo!d do we

by being aware of these factors.Verification

#he appication form provides information abo!t the appicant. #he information that is

s!bmitted in the appication form by the individ!a is verified from vario!s primary and

secondary so!rces - thro!gh interview+ caing !p the empoyer+ verifying from the bankJs

database etc. (n case of wrong information/ inconsistencies+ the oan appication is iabe to be

reected.

Repayment capacity

#he financia position of the individ!a is an important determinant. #he individ!aJs financia

profie is an important consideration for the bank. #he oan eigibiity as we as repayment

capacity depends on the financia position of the borrower. #he income eve+ net income+

iabiities etc determine the amo!nt of oan a person is eigibe for. #he re"!irements inc!de a

partic!ar minim!m income or a fi*ed so!rce of income. #he credit history of the borrower aso

pays an important roe. 9s!ay+ the enders maintain a database of the borrower and verify

the credit history to check o!t previo!s repayment defa!ts+ even from other enders.

Profile

#he persona profie of the individ!a is aso important. anks take into acco!nt the persona

profie of an individ!a. #hese inc!de factors ike ed!cationa "!aifications+ profession+

n!mber of dependents+ assets owned+ iabiities owed+ savings history etc. A higher n!mber of

dependants or e*isting iabiities impies ower repayment capacity.

Age

(t pays a maor roe in determining the earnings potentia of an individ!a. (n case a property is

co-owned+ the co-owner cannot be a minor. Aso+ the co-owner cannot be above a certain age

imit. #he age imits are set to minimise ownership disp!tes. #he age imit aso affects the

ten!re of the home oan and 4

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in case the bank has a C8-year age imit for a co-appicant+ and if the appicant is years od

and the co-appicant is 7 years od+ the home oan wi be sanctioned for a ma*im!m period of

58 years ony.

Location of property

#his aso affects the eigibiity. ,ertain areas are specified as being KnegativeJ in the books of

some banks. (f an individ!a intends to b!y a property in s!ch an area+ he wi not be granted a

oan. anks have specific norms with respect to a minim!m area of the fat. #his may be b!it-

!p area or carpet area. #he age of the property is aso an important consideration in case of

p!rchase of e*isting properties. 3ome oans on resae properties are sanctioned ony if they

are ess than 8 years od.

anks cond!ct ega and technica appraisas of the property to see whether the tite of the

property is cear+ there are no ownership disp!tes+ the property is free from any enc!mbrances

etc. (n case there are any obections in these appraisas+ the oan appication is bo!nd to be

t!rned down.