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Question 1

What exactly is an "instalment loan"?

Answer

An installment loan lets you get money at a predetermined amount and make monthly payments to pay back the loan. It is possible to use an installment loan for any reason such as car purchases or home renovation as well as debt consolidation, medical expenses, or mortgage consolidation. A personal loan or credit card has a higher interest rate and an installment loan will have a lower rate of interest. The terms of the loan (the time frame for repayment and the amount of each payment) can be customized to meet your requirements. If you want to get large amounts of cash and break down the payments into smaller, easily manageable installments, this is an option. Is Bank Loans Internal or External.

Question 2

What is an "direct loan"?

Answer

Direct loans can be described as a kind of loan that is funded by U.S. Department of Education. It is offered through a school authorized to take part in the Federal Direct Loan Program. There are two kinds of direct loans. The government is responsible for the interest on subsidized loans while you are at school at least half-time for the first six years following graduation, and also during deferments. Unsubsidized loans are your responsibility from the moment the loan is made until the final payment. You have two options to pay the interest while you're in school, or make it a capitalization (added to your principal balance). Is Bank Internal or External.

Question 3

What is a loan assumption?

Answer

A loan assumption occurs the process of taking on the payments on a loan. The new borrower is usually approved by the lender and then makes the regular repayments to the lender. The main benefit of an assumption of loan is the ability to let the original borrower, without them having to wait for the approval of a lender before they can get a mortgage and to close the deal. A loan assumption could have some drawbacks. It can be more difficult to get an approval for a mortgage than a brand new one and could need fees. Is Internal or External.

Question 4

How do you calculate your loan's interest payment?

Answer

To calculate the interest payment on a loan first determine the principal amount and interest rate. Then, calculate the monthly installments. To convert the annual interest rate into a decimal, first divide it by 100. Divide the result by the principal amount you have to get the annual income. The monthly interest is calculated by dividing this number by 12. For instance, let's say you have $10,000 in debt with an annual 8% rate. The monthly payment for interest for this loan would be $83.33 that's $10,000 x.08/100 = $80/12 = $6.67/month. Is Bank Loans Internal or External.

Question 5

What exactly is a "lender credit"?

Answer

The lender can provide credit to customers. Credit offered by lenders allows borrowers to borrow greater amounts than they could use only their own credit. Lender credits are offered by lenders to attract more business. They usually take the form or a percentage off the amount of loan. In other words in the event that you borrow $10,000, and the credit from the lender was 10%, you would be required to repay $9,000. Rates for credit from lenders may differ across lenders, and it's important that you check rates and shop around before deciding which lender is the best fit for your needs. Is Bank Internal or External.

Question 6

What is what is a "heloc" loan?

Answer

A HELOC loan, also known as a home equity line credit is one type if loan that allows the borrower to draw on the loan in a revolving manner. This loan is often used to finance major costs such as home repairs and renovations, college expenses, or medical expenses. The amount borrowed is usually determined by the equity of the borrower's home. HELOC loans come with an interest rate that is lower than conventional mortgages and personal loans. HELOC loans generally are more expensive that credit cards. Is Internal or External.

Question 7

What are non-recourse loans?

Answer

A non-recourse loan is a loan that is not backed by the borrower's assets. The lender isn't able to acquire the assets used to collateralize the loan if the borrower can't repay the loan. Let's take an example: you apply for a non-recourse loan to purchase the latest car. If you don't pay your monthly payment, the lender has the right to take possession of the car , but it isn't able to seek any additional money. This is not the case with a recourse mortgage, in which the lender could take your wages and garnish them or engage in another legal recourse if not paid back. Is Bank Loans Internal or External.

Question 8

How much can I qualify for a VA loan?

Answer

The VA does not have a maximum loan limit. Instead, it uses the conforming loan limit established by Fannie Mac and Fannie Mae to determine how large you can take out. Your location in relation to your house can affect the limit. The limits are protected by the VA. It is necessary to have additional funds if you intend to take out more than the amount guaranteed by the guarantee. The VA Loan Limit Calculator is an free online tool that lets you to determine the amount of loan you could be eligible for. Is Bank Internal or External.

Question 9

What can be used for collateral in a personal loans?

Answer

It is possible to use collateral for a personal loan in a variety of ways, such as the purchase of a home, a car, stocks or bonds. When you are applying for a personal loan it is crucial to discuss with the lender about the options for collateral available. Some lenders are more flexible in relation to what is considered acceptable collateral. It is recommended for all parties to have an honest, open conversation with lenders about the possibilities for collateral prior to submitting an application. This will ensure everyone is on the same page and will avoid any unexpected surprises later. Is Internal or External.

Question 10

Who is a Micro lender?

Answer

A micro-lender can be described as a bank that lends money to small businesses or individuals, usually with a limit of less than US$50,000. A majority of micro lenders serve entrepreneurs, as well as those with lower incomes who may not otherwise be able to borrow from traditional banks. Because they are more at risk of lending to those who might not be able pay back the loans, micro lenders usually charge high interest rates. However, micro lenders are a great resource for entrepreneurs by helping them to get their business up and running and growing. Is Bank Loans Internal or External.