Secured, unsecured and demand loans

Secured, unsecured and demand loans – Federal Direct Loans & Student Loans

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.

In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount.

The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.

Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.

How-To Guides

• Differentiate Between Good and Bad Debt
• Calculate How Much House You Can Buy
• Determine Whether You Should Refinance
• Repay Your Student Loans
• Avoid Car Loan Mistakes

Calculators

• How long until my loan is paid off?
• Compare a « no-cost » versus traditional mortgage
• What would my loan payments be?
• What is my current cash flow?
• Comprehensive mortgage calculator

Secured

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan.
A subsidized loan is a loan that will not gain interest before you begin to pay it. It is known to be used at multiple colleges.
An unsubsidized loan is a loan that gains interest the day of disbursement.

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.

A type of loan especially used in limited partnership agreements is the recourse note.
A stock hedge loan is a special type of securities lending whereby the stock of a borrower is hedged by the lender against loss, using options or other hedging strategies to reduce lender risk.[citation needed]

A pre-settlement loan is a non-recourse debt, this is when a monetary loan is given based on the merit and awardable amount in a lawsuit case. Only certain types of lawsuit cases are eligible for a pre-settlement loan.[citation needed] This is considered a secured non-recourse debt because if the case reaches a verdict in favor of the defendant the loan is forgiven.

Unsecured

Unsecured loans 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:

credit card debt
personal loans
bank overdrafts
credit facilities or lines of credit
corporate bonds (may be secured or unsecured)

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. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974.

Demand

Demand loans are short term loans (typically no more than 180 days)[1] that are atypical in that they do not have fixed dates for repayment and carry a floating interest rate which varies according to the prime rate. They can be « called » for repayment by the lending institution at any time. Demand loans may be unsecured or secured.

See also :

Payday Loan in 1 Hour | MyPaydayLoanCash.com $1500 Payday Loan in One Hour No Credit Check. Low Fees. Act Now
www.mypaydayloancash.com/Loan1Hour

bad Credit Loans – Get up to $1500 Cash Loans in 1 Hr. No Credit Check. Easy Fast Approve
www.700advancescash.com

LOANS – Get $1500 Cash Advances in 1 Hour. | very-fast-loan.com No Faxing, Bad Credit OK Apply Now!
www.very-fast-loan.com

2.6% Home Loans  No Hidden Fees – 3.14% APR! As Featured on CNNMoney and Forbes.
loans.deltaprimerefinance.com

Royal Gems Pawnbrokers Get a Cash Loan For Your Jewelry
Pawn Jewelry, Diamonds, Watches+ 55 West 47th St #203, New York (212) 575-1943
www.royalgemspawn.com

Short-Term Loans Info  Get Info On Short-Term Loans Access 10 Search Engines At Once.
www.info.com/Short-TermLoans

Sallie Mae® Student Loans Sponsored Result Pay Off Loans In Less Time With Sallie Mae Smart Option. Apply Now.
www.salliemae.com/SmartOption

Bad Credit Long Term Loan Sponsored Result Get up to $5000. Super low fees! Flexible Payments.Bad Credit OK
www.securelinkcorp.com

College Student Loans Sponsored Result School-certified student loans. Apply in as little as 15 minutes.
www.collegiatestudentloans.com

$1,500 Bad Credit Loans Sponsored Result Pay Monthly – Limited Time Poor Credit OK – Apply Now!
www.eloanpersonal.com

Loans – $100 to $15,000 Sponsored Result Bad credit? Need a cash loan? See 5 loan options. Apply fast!
www.badcreditoffers.com/Loans

Christian Financial Help Free services for the struggling We help anyone who wants it
www.christianhelptoday.com

GovLoans.gov – Find the Right Loan for You
GovLoans is a partnership of many Federal agencies and organizations with a shared vision – to provide improved, personalized access to government loan …
www.govloans.gov

Compare all UK Cheapest Loans for Free at Moneysupermarket.com
Get the Lowest Loans Rates & Exclusive Deals only at Moneysupermarket.com. Apply Online – its Quick & Easy to get a Personal Loan for any purpose.
www.moneysupermarket.com/loans

Loans | Credit.com With Credit.com, you can find the right loan for you and receive a free, no-obligation loan quote from one of our network lenders.
www.credit.com/products/loans/

Unsecured Loan Source
BUSINESS & PERSONAL LOAN SOLUTIONS Why use Unsecured Loan Source for a Business loan or a Personal loan? For the average person, obtaining the right ..
unsecuredloansource.com

Federal Direct Loans
Apr 26, 2010 – This website provides information for college students, parents, and financial aid professionals about the U.S. Department of Education’s ..
www.direct.ed.gov

Bad Credit Loans & Personal Loans… Instant online approval
Do you have bad credit? We are offering solutions in finding a bad credit loan, bad credit personal loans, home loans, & debt consolidation.
www.drcredit.com

FinAid | Student Loans
An education loan is a form of financial aid that must be repaid, with interest. (Scholarships, on the other hand, do not have to be repaid.) ..
www.finaid.org/loans

Direct Loans
U.S. Department of Education site explaining how to view Federal student loan documents, entrance counseling and how to sign promissory notes.
https://studentloans.gov