Loans & Credit:

The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. The lender also adds interest and/or finance charges to the principal value which the borrower must repay in addition to the principal balance. Loans are for a specific, one-time amount, or be available as an open - ended line of credit up to a specified limit. Loans come in many different forms including secured, unsecured, commercial, and personal loans.

Types of Loans:

Short-term loans are usually extended by financial institutions generally for a period of 1-2 years. These are mostly unsecured, and need not required to pledge collateral as security to avail them. These are "short-term" as the associated repayment tenor can be paid off in full within 6-18 months rather than the speed of funding. Long Term Loans are defined as a type of debt that can be repaid over an extended time, typically exceeding the time frame of a few years. This time period ranges between 3-30 years. These loans may have a fixed interest rate, or a floating rate based upon the prime rate or other benchmarks.
Loan Shark:
A loan shark might:
Fin Quest