ДепартаментЧужди езици и култури

 

 

Loan

by Mihaela Kovacheva

Definition

• A thing that is borrowed, especially a sum of money that is expected to be paid back with interest: ‘borrowers can take out a loan for £84,000’
•  An act of lending something to someone: ‘she offered to buy him dinner in return for the loan of the flat’

What do you mean by loan?

• A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 30 years in some cases. A term loan usually involves an unfixed interest rate that will add additional balance to be repaid.

How can I get a loan?

• Funds from approved loans are delivered electronically to your bank account, usually within a few days. If you are looking for a small personal loan — less than £ 2,500 — you may find that some lenders don't offer them. A credit union should be your first stop.

Student loans

• Student loans are offered to college students and their families to help cover the cost of higher education. There are two main types: federal student loans and private student loans. Federally funded loans are better, as they typically come with lower interest rates and more borrower-friendly repayment terms.

Mortgages

• Mortgages are loans distributed by banks to allow consumers to buy homes they can’t pay for upfront. A mortgage is tied to your home, meaning you risk foreclosure if you fall behind on payments. Mortgages have among the lowest interest rates of all loans.

Autoloan

• Like mortgages, auto loans are tied to your property. They can help you afford a vehicle, but you risk losing the car if you miss payments. This type of loan may be distributed by a bank or by the car dealership directly but you should understand that while loans from the dealership may be more convenient, they often carry higher interest rates and ultimately cost more overall.

Small business loan

• Small business loans are granted to entrepreneurs and aspiring entrepreneurs to help them start or expand a business. The best source of small business loans is the U.S. Small Business Administration (SBA), which offers a variety of options depending on each business’s needs.

Payday loans

• Payday loans are short-term, high-interest loans designed to bridge the gap from one paycheck to the next, used predominantly by repeat borrowers living paycheck to paycheck. The government strongly discourages consumers from taking out payday loans because of their high costs and interest rates.

Borrowing from Retirement & Life Insurance

• Those with retirement funds or life insurance plans may be eligible to borrow from their accounts. This option has the benefit that you are borrowing from yourself, making repayment much easier and less stressful. However, in some cases, failing to repay such a loan can result in severe tax consequences.

Consolidated loan

• A consolidated loan is meant to simplify your finances. Simply put, a consolidate loan pays off all or several of your outstanding debts, particularly credit card debt. It means fewer monthly payments and lower interest rates. Consolidated loans are typically in the form of second mortgages or personal loans.

Borrowing from Friends and Family

• Borrowing money from friends and relatives is an informal type of loan. This isn’t always a good option, as it may strain a relationship. To protect both parties, it’s a good idea to sign a basic promissory note.LOANS in Guardian:The class of 2012 has the highest student loan burden of any graduating college class in history, continuing a five-year trend of rising debt loads on millennials just coming out of school.

 

LOANS in Guardian:

"The average student debt load made a big jump in the past year, from $26,600 in 2011 to $29,400 in 2012, according to the Project on Student Debt at The Institute for College Access and Success.

It's increasingly rare for students to get out of college without student loan debt. Of 1,075 private and public colleges, 42 reported that more than 90% of their graduating class are leaving college with some student debt – meaning the vast majority of their students had to take loans to graduate. Meanwhile, 122 colleges reported the average debt per student is more than $35,000. Overall, currently only three out of every 10 US graduates are graduating without debt. "

December 2013

 

LOANS in Telegraph:

"Drivers may face tougher affordability checks to qualify for car loans amid fears of a new financial crisis triggered by pay-as-you-drive deals.

The amount of money being borrowed to buy new cars has trebled over the past eight years to more than £30 billion and there are growing concerns over the lack of financial checks made on potential borrowers.

Motorists can be offered loans worth more than their own salaries in a growing scandal which has echoes of the sub-prime mortgage boom which helped spark the global financial crisis."

 

April 2017