Questions tagged [loans]
This tag is a generic tag to be used when asking a question on Loans / lending. If there is a specific question the other related tags like home-loan, student-loans, etc should be used.
1,111
questions
-4
votes
3
answers
102
views
Why aren’t amortized loans outlawed and replaced with a more equitable model to the borrower?
I completely understand that banks are in the business of making money and capitalism prioritizes profit above all other values. However why aren’t laws enacted that would ban amortized loans and ...
- 1
0
votes
0
answers
27
views
Credit Investing - Best Metric To Compare Spread / Yield Per Unit of Risk
Do people investing in credit (leveraged loans / high yield) that want to compare different industries / different valued businesses ever look at spread per turn of LTV (or the inverse, 1/LTV = asset ...
- 1
1
vote
1
answer
2k
views
Are banks willing to lend money to one-man APP startups?
I am one person building a social-media-ish APP. I am 2 years along. Let's say that it's 90% finished.
How do you get a bank to lend you money for this APP?
7
votes
5
answers
2k
views
How to compare loan interest rate to savings account interest rate?
I don't understand how to compare my loan's interest rate to my savings account interest rate.
My savings account states:
The Interest Rate on your account is 4.0249% with an Annual Percentage Yield ...
- 173
0
votes
1
answer
39
views
Minimizing tax liability in business purchase w/ personal loan from other partner
I'm purchasing an existing business with a business partner. They're in a better position than I am regarding liquid assets. I've got most of my assets in positions where I'd be paying high short term ...
- 109
0
votes
0
answers
31
views
Determine loan interest rate from income statements and balance sheets
I'm trying to determine the loan interest rate from financial statements, e.g https://finance.yahoo.com/quote/VLVLY/balance-sheet?p=VLVLY
Here's what I got
Interesting expense 1,205,000 = 12.05B
...
- 375
2
votes
1
answer
55
views
Consequences of frequent share holder loan and repayment to and from my Ontario Corporation?
Let's say I have an Ontario Corporation in Canada. My corporate fiscal year is from July 1 to June 30. I also have a personal line of credit with my personal bank and I owe $50k to the bank. The ...
- 849
0
votes
1
answer
42
views
Creating an amortization schedule for a loan with variable interest that compounds 2x per year
Has anyone created an amortization schedule for a loan with a variable interest rate that also compounds 2x per year?
The loan has a set payment amount (15k monthly), but because the interest is ...
- 1
2
votes
1
answer
2k
views
My girlfriend helped me buy a car - Who is responsible if she takes it back?
My original car was totaled, and I couldn't get a car on my own due to bad credit. The dealership approved me at a high rate with money down. When I get my trust fund, I can buy one.
My girlfriend ...
- 21
4
votes
3
answers
971
views
How does a rollover work with Bonds?
I understand how a rollover works with personal loans. An easy example would be a car. Someone wants to buy a new car, but they still have an outstanding balance on their current vehicle. So the ...
- 351
3
votes
1
answer
546
views
Can applying for a new loan affect my existing mortgage? (US)
I live in the US and I am a somewhat mature full-time graduate student. I have gone back to grad school after having spent some years working and I have children and a mortgage. My school has a policy ...
- 695
0
votes
1
answer
53
views
Do student loans capitalize daily after the grace period?
As I understand it, for many student loans, when you take out the loan, there is a daily, fixed, simple interest that accrues. This accrues on the principal but does not capitalize. Therefore, if I am ...
- 312
1
vote
0
answers
56
views
Does a loan for purchasing land provide a tax benefit?
I want to take a loan for land. In the future we want to build house on it, but now we can only afford the land. Would this be a personal loan or home loan?
If I take this land loan can I benefit in ...
- 111
6
votes
3
answers
2k
views
How do loan payments made before the end of the month affect payment due for that month?
I would to understand how loan repayments work. Let's say I take out a loan for $100,000 at 5% for 5 years. I would have a monthly payment of $2,124.70. This payment is expected to be paid monthly. ...
- 171
8
votes
7
answers
5k
views
When is it worth taking out a loan for something I could pay in cash?
I'm trying to better understand the time-value of money and how to compare interest rates vs. investment returns.
In general, if I can pay for something in cash or short-term credit (paid off monthly),...
- 297
18
votes
5
answers
8k
views
I have to pay back my student loan. When is the best time to do it?
Today, I received the news that my "Payback phase" for my student loan has begun. I was afraid this day would come soon, but it came quicker than I anticipated. However, I got the news that ...
- 313
9
votes
2
answers
3k
views
Are demand and time deposit accounts really loans _to_ the bank?
Borrowers pay interest to borrowees any time they take out a loan.
The Government even pays interest when you "buy" it's notes and bonds.
Banks, too, pay interest to deposit holders. Does ...
- 50.5k
2
votes
1
answer
309
views
Tidal loan insurance
I received notification of approval from Lending Club. He said it was structured as a "tidal loan" and an insurance fee would need to paid upfront to allow funding.
Does this sound legit??
...
- 31
2
votes
0
answers
180
views
Can we hand over blank cheques to a bank when applying for any kinda loans?
I applied for a 4 lakh car loan with HDFC Bank, but before they will approve it, they require four blank cheques with my signature. Is it safe to give the bank those cheques?
0
votes
1
answer
140
views
Salary doubled on credit app - what could happen?
I recently applied for credit for a loan for a solar system. I submitted the form on the solar companies website. They sent it to some loan company who sent me their credit application doc to sign ...
- 143
4
votes
3
answers
293
views
Musk bought Twitter with $13b loans - why is *Twitter* liable for this debt rather than Musk?
Elon Musk bought Twitter in late 2022 for $44 billion. My understanding is that $13b of the total price was financed by bank loans.
So, why is Twitter itself on the hook for the loan repayments?
If I ...
- 149
1
vote
1
answer
121
views
Is car loan the better option when one has already saved enough to cover the purchase
Let's say someone has saved $100 000. There is no specific purpose for this saving
Now there is a car that cost $62 000
Financing the car entirely via a bank loan would cost around 50% of the salary ...
- 11
2
votes
4
answers
310
views
Which is cheaper: 50% down with 50% loan or 100% loan with 50% immediately paid after signing
I find myself in a position of needing to finance a large purchase. Fortunately, I saved a significant amount in expectation of this expense so I have about 50% of the total cost on hand and ...
- 123
0
votes
1
answer
105
views
Would a personal loan likely be denied if the intended use was real estate?
I have an excellent credit score and long history with my bank. I would like to buy an apartment outside of my country (the US). Since I can't take out a mortgage with my US bank for this purpose, I'm ...
10
votes
12
answers
6k
views
Do I use savings to buy a car?
My current car worth £700 needs £1500 of repairs. It’s a bit of a money pit at the moment with big repairs needed a lot.
I want to buy a new car. I’m looking at used cars and I found a 2015 Corsa that ...
- 101
21
votes
7
answers
9k
views
Why would a loan company deposit a small amount into my account and require I send it back?
Why would a loan company deposit a small amount of money into your account to verify if you are honest about repaying the loan you’re asking for?
They want to deposit a small amount into my account, ...
- 235
8
votes
1
answer
803
views
US: tax on revenues from loans (I'm the lender) and other services?
I have some spare money and would sometimes loan it to strangers in need on the internet. Let's say that I loan $100 and get $150 back after 5 weeks. Only that $50 should count as my income right? And ...
- 301
0
votes
2
answers
151
views
Why offer at a lower interest rate on a loan then the expected ROI of investing in the stock market?
A quick google search told me that the expected ROI of investing in the stock market is roughly just under 10% That's admittedly a bit higher then I had anticipated, but quick scanning of their ...
- 1,186
20
votes
9
answers
5k
views
What would be a recommended interest rate for an unsecured loan to individuals with mediocre credit rating and income close to expenses?
I have a friend whose new wife is paying an absurdly high interest rate on her auto loan. They've asked if I was willing to loan them money at a more reasonable rate to pay off that loan and have ...
- 1,186
5
votes
2
answers
3k
views
Why the calculated cost of a loan is less than expected? Is the bank working at a loss?
Let's say I want to borrow $1000 from a bank at an interest rate of 12% per year, for one year. The number of payments in this case is equal to 12 (one year * months per year) and the interest rate ...
- 169
2
votes
0
answers
56
views
How do I find company exposures to specific loan types? [closed]
I think student loan liabilities are likely to become a big problem pretty soon. How do I find the companies that would be most exposed to this? not sure where to start.
- 143
1
vote
1
answer
64
views
Calculate Loan Balance and Future Balance with Extra Repayments
So, here's the current situation.
I took out a £7000 loan over 42 months at the insane interest rate of 47.4%.
I needed the loan, couldn't borrow it off family, and the interest rate is due to some ...
- 328
2
votes
1
answer
128
views
Borrow from 401k (and pay interest to myself) or take a loan from bank (and pay interest to the bank) to buy a car?
Should I borrow against my 401k at 6% interest rate (which I pay to myself) or take a loan through a bank at 3.5% interest rate (which is paid to the bank)? Buying a car for my kids and can't afford ...
- 21
0
votes
3
answers
224
views
If informal debt agreements ( e.g. IOUs ) aren't legally enforcable, how are they useful? When should you use a loan agreement instead?
I am unsure when to use IOUs for my business & friends' debt. Investopedia states that loan agreements are similar to IOUs but legally enforceable.
If informal debt agreements carry no legal ...
- 11
1
vote
2
answers
140
views
Is there a way to not receive a credit score drop when paying off an auto loan by keeping the account active in another way?
I know the credit score drop is minimal if you have good credit and will recover eventually, but it just occurred to me that perhaps there is a work around like updating the account or restructuring ...
- 121
1
vote
5
answers
216
views
What’s the real benefit of taking loan when interest rate is lower than inflation
This question is particularly regarding taking out a loan for a specific purpose, let’s say buying a car.
I understand that when taking out a loan when inflation is high and interest rates are low you ...
- 111
0
votes
1
answer
148
views
What's the name for a group of people pooling fund every period then loaning the collected sum to a single member periodically?
I got into an argument with a family member about a loaning mechanism they and their friends are using. They detailed it this way: in a group of 5, every member submits $200 to a safe keeper in the ...
-2
votes
1
answer
111
views
Are there any home-loans that compound every quarter or half-year or annually?
Are there any home-loans that compound every quarter or half-year or annually?
Asking for a friend who keeps bugging my other friend to give them money to buy a house, and the friend doesn't want to ...
- 147
0
votes
1
answer
146
views
What is a reasonable ROI on friends & family capital loan for startup venture?
Every investor obviously interested in max ROI but what is a realistic ROI an investor would seek on a capital loan for startup venture?
What is a reasonable duration for that receiving back the ...
- 279
0
votes
1
answer
215
views
Bank appears to be charging me more interest on a loan than they should
I have a car loan. This is a simple interest loan. When I enter in the details into a loan amortization calculator online, I get a different payment amount than what I have been paying. And, the ...
- 103
20
votes
7
answers
7k
views
How is making a down payment different from getting a smaller loan?
What is the difference between these two things?
$100k loan with $20k down payment to buy a $100k thing
$80k loan with $0 down payment to buy a $100k thing
They seem effectively identical. But in ...
- 521
1
vote
2
answers
80
views
Is this a weekly compounding loan amortization schedule?
I am currently having a disagreement with my colleagues regarding whether a loan is compounding or not.
I have linked below an image of a amortization schedule for a 52 week term for a $50,000 loan. ...
2
votes
2
answers
122
views
How can I calculate amortized payment when the payments are made in advance?
I'm trying to calculate the payment amount on an amortized loan with interest where the payments are made in advance.
If the payments are made in arrears there's a simple formula, but since the first ...
- 21
0
votes
2
answers
396
views
Extension of Credit meaning
I'm reading some finance literature and often when it refers to loan it instead uses these term:
extending credit
extension of credit
credit extension
When I google define "credit extension&...
- 113
3
votes
1
answer
304
views
Effective interest rate of two loans
Let's say I have two loans and want to calculate the "effective" interest rate. To make things easy let's assume they have the same principal and the same terms (30 years), just two ...
- 7,605
0
votes
1
answer
218
views
When using land as a down payment for a construction loan, how much money can I borrow?
I am looking to purchase some land in cash (in the USA) and build a house on the land. I intend to use the land as equity (as part of the down payment) for a construction loan.
I'm looking to ...
1
vote
1
answer
86
views
Income Tax Return: Is the co-op's mortgage (not the lending institution mortgage) a secured or unsecured loan?
I have two 1098 forms: One from the lending institution and another from the Corporation. For the lending institution 1098 form, I deduct the mortgage interest and there are no real estate taxes. It's ...
- 145
-1
votes
1
answer
154
views
Should I buy a second car at 18 years old? [closed]
Is it smart to buy a 43k car when I have saved up 26k and make around 1000 a week as an 18 year old
- 11
3
votes
1
answer
185
views
Title company doesn't know how to amortize a loan?
More likely I don't get it/am not used to this. Can anyone explain/formulate what I'm told is a "Daily amortized, 5.5%, fixed interest rate loan"?
I've been buying and selling properties for ...
- 1,541
1
vote
3
answers
170
views
Put down only 10% or put 20% down and pay a family member back the other 10% at 2.99% interest rate?
I am buying a 350K condo with 10% down, 2.99 interest rate, 30 yr fixed mortgage (I hope to pay it off in 15 yrs).
I cannot put down more without depleting my savings. Should I ask my dad for a $35K ...
- 11