Various Types of Loan Definitions
United States - All States
The Various Types of Loan Definitions, These are some types of loans , and various lingo used related to loans. Hope it will help some students out there, or professionals in the field.
1. (Banking) short-term loan provided to a customer until he can secure long-term financing.
1. Short-term loan until a long-term loan is secured.
Emergency loans and advances:
1. Loans to a bank that does not meet the necessary requirements for receiving credit.
1. Bank account held as a guarantee on the repayment of a loan.
1. To lend.
2. By way of location or loaning them out.
Loan to value ratio:
1. Relation between the amount of a property loan in comparison with the value of the property it was used to purchase.
1. Loan which is not given by a bank, loan from a source other than a bank.
Short term loan:
1. Loan for a short period of time, borrowing money from a bank for a period of time which is less than one year.
1. Bank loan for a short term that is determined in advance.
Automated teller machine:
1. Computerized bank machine where one can make transactions using a magnetic card.
Automatic bank services:
1. Automatic teller service, automated bank machine, mechanism for carrying out bank procedures via a magnetic card, ATM.
Automatic teller machine:
1. Cash machine, computerized bank machine where customers can make transactions using a magnetic card.
1. Special envelope for depositing checks in a bank without having to wait on line.
1. Receipt for money deposited into a bank account.
1. Slip certifying the amount of money deposited into a bank account.
1. Act of placing for safekeeping, putting in a bank account.
1. The temporary provision of money, usually given with interest attached.
2. To lend money for a short period.
1. The practice of buying stock or inventory on credit from other businesses. This credit means that the buyer is not expected to pay cash for the goods or services. The supplier asks the buyer to complete an application form and this is used to verify the creditworthiness of the buying firm.
This type of loan often comes with terms and credit limits. The creditor will usually expect payment 30 days after the good were issued, otherwise legal action will be taken to recover the money due.
1. This is also known as an overdraft option. It is a very common form of short term finance. Normally associated with a particular bank account. The Bank affords credit to its customer in the sense that it allows your balance to go below zero.
An application for overdraft is usually granted by a bank manager. It is seen as a risk so your credit score will be taken into account before granting you the option. It is sometimes recommended to have a business plan when you apply for an overdraft facility.
1. This is a source of medium term finance, it is a very popular method of financing fixed assets like motor vehicles, machinery, and property. This type of loan is a credit sale in which it is agreed that the purchase price of the goods will be payed using installments.
Although you as the buyer take possession of the item, you are not legally the owner of the item until the last installment has been paid.
2. In Hire purchase: There must be an agreement between buyer and seller, it must state any deposits. It should also contain a description of the goods being purchased.
1. It is common for a business to lease, rather than purchase, this would be the case if a business needs a piece of machinery that they want to use but do not want to own.
The owner of the asset (The lessor) grants the use of that asset to the buyer (The lessee) for a certain period at an agreed rate. The lessor is usually a bank or similar financial institution. The benefit of this approach is that the lessee does not have to fund the asset himself, just its usage.
Medium term loans:
1. Type of loan that is repayable in a 24 or 26 Month period. It is usually granted to finance working capital or for the acquisition of fixed assets. The lender will require some form of security for the loan and will impose certain restrictions on the loan.
1. This is the initial capital that is injected into a business. There is usually no obligation to repay the principle amount, or even to pay interest on the amount.
1. Loan designed to assist a contractor at the beginning of a building project.
1. Loan given as an incentive for increasing consumption in a business.
Current loan account:
1. Account which allows a withdrawal on a debit basis.
1. Loan given for the purpose of strengthening and improving a business, or developing venture.
Foreign currency linked loan:
1. Loan that is linked to the currency of another country.
Front end load:
1. Sales commission paid at the time of purchase, commission paid at the beginning of a financial transaction.
1. Financial loan given out by the the government.
1. Financial loan given out by the the government.
1. Loan whose rate is directly connected to the stock market.
Inter library loan:
1. System by which books may be borrowed by one library from another.
1. Loan given for a year more, and usually can last for three years.
1. Public institution which provides loans of limited amounts.
1. Loan which becomes a grant under certain circumstances.
1. Short-term financing intended to cover a temporary lack of funds.
Optionally linked loan:
1. Financial loan from the public to a country which is returned with a link which the citizen chooses from several options.
1. Financial loan for the country from the citizens.
1. A Loan given, mostly to students to pay for tuition, but sometimes could be used for transport, accommodation or other student requirements. Usually they have a requirement that once the student starts working they are able to pay back the loan with interest.
Student Loan Market Association:
1. United States corporation specializing in buying student loans from lenders and reselling them on the secondary market that helps ensure a constant supply of available funds for student loans.
1. Loan that is given or taken by ones own free will.
1. Loans accepted from family or friends, usually as an investment but sometimes as a gift that requires no repayment.