A loan is a type of debt. All material things can be lent; this article, however, focuses exclusively on monetary loans. Like all debt instruments, loans entail the redistribution of financial assets over time, between the lender and the borrower.

The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt. A borrower may be subject to certain restrictions known as loan covenants under the terms of the loan.

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. Bank loans and credit are one way to increase the money supply.

Legally, a loan is a contractual promise of a debtor to repay a sum of money in exchange for the promise of a creditor to give another sum of money.

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 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.

Unsecured

Unsecured loans are monetary loans that are not secured against the borrowers 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.

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.

Abuses in lending

Predatory lending is one form of abuse in the granting of loans. It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over him or her. Where the moneylender is not authorized, it could be considered a loan shark.

Usury is a different form of abuse, where the lender charges excessive interest. In different time periods and cultures the acceptable interest rate has varied, from no interest at all to unlimited interest rates. Credit card companies in some countries have been accused by consumer organizations of lending at usurious interest rates and making money out of frivolous “extra charges”.

Abuses can also take place in the form of the customer abusing the lender by not repaying the loan or with an intent to defraud the lender.

LoanTuts.Com is a blog which provides you with comprehensive information, tips and advise on a wide range of loan products. Learn about the secrets of how to minimise your loan exposure and obtaining maximum benefit from loan facilities.

Auto Transport When You Need it Most

Car Transport You Can Trust

The past century has brought about a lot of changes. Most notably, people are more mobile than ever. If you want to get from New York to sunny California, all you have to do is hop in your car and drive, or you can take a plane flight or hitch a ride on a train all to get you there in anywhere from a matter of hours to a matter of days. However, despite being such a mobile community of travelers, many people are opting taking their vehicles on a cross-country trip because they simply don’t want to put that kind of wear and tear on their vehicles. This is where auto transport comes in.

Auto transport is proving to be more and more effective as increasing numbers of people are trying to save money, time and the headache that typically comes with all of the “extra” expenses of having to drive your vehicle or vehicles yourself. Shipping your vehicle coast to coast should not be a complicated experience for you. In fact the auto transport company you employ to do this should leave you feeling with a sense of security that your vehicle is in capable hands. The following are just some of the types of vehicles that an automobile transport company will transport:

• cars,
• motorcycles
• RV’s
• boats
• classic cars
• heavy machinery, etc.

Car Transport Services That Won’t Break the Bank

One of the biggest misconceptions about car transport companies is that they are specially reserved for car dealerships or corporate executives. On the contrary, car transport companies provide auto transport services to everyday people like you and me. For example, many snowbirds who have homes in both New York and Florida will utilize the services of a reputable car transport company in order to have their cars shipped from one location to the other. In this instance, auto transport makes sense because it saves them the hassle of having to drive their personal car or cars over the course of two days in order to reach their final destination. Instead, all they have to do is book their plane or train ticket, sit back and relax.

Some of the typical customers that a vehicle transport company will attract include some of the following:

• individuals relocating anywhere within the United States,
• automobile dealerships
• people going on vacations
• car collectors
• military personnel
• construction teams and crews
• corporations offering relocation packages

An Auto Transport Quote You Can Afford With an Auto Transport Company You Can Trust

Using a reputable auto transport company that will get your vehicle or vehicles from point ‘A’ to point ‘B’ doesn’t have to be a pain. On the contrary- it should be both relaxing and fun! The relaxing and fun part comes from knowing that your vehicle(s) will be in safe hands and will get to you a) in the exact condition that you left it in and b) on time. When you first look into using an auto transport company for your vehicle transport needs, make sure that you do your own research first. Some car transport companies will give you one price quote before you book an appointment with them and then change it to something else before you end up paying for everything.

When you contact an auto transport company for the first time, there are a few things that you should take note of:

• Does the representative that you’re speaking with on the phone seem friendly and attentive to all of the questions that you may have about the auto transport process?
• Does the car transport company have a website where you can view more details about the company?
• What do other customers have to say about the car transport company and how their vehicle(s) was transported? Is there a “testimonials” page?
• Does the car transport company have an online form that you can fill out in order to make your car transport reservations online?
• Is the car transport company up front with its pricing?
• Is the car transport company a federally licensed and permitted vehicle transportation company? What sort of training do the vehicle transport carriers have?
• What sorts of concessions are made if a customer is unhappy with the level of service that the automobile transport company provides?

In the automobile transport industry it’s essential that you do everything you can to make the customer feel like all they need to do is tell you where you want their vehicle to go in an effort to reassure them that everything will be taken care of. It is this dedication to quality service that will make a car transport company stand out against the rest.