American Loan Guide

Personal Bank Loan,Bank Business Loan,Commercial Bank Loan,Mortgage Bank Loan,Debt Consolidation Bank Loan

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.

Bank Loan

Bank Loan

Web definition for a bank loan is a medium-term form of finance obtained from a commercial bank or other similar financial institution. The loan may be secured on the entity’s assets and the interest charged may be variable.

A loan from a bank can be of different types. A loan to buy consumer durable goods, such as, a car or furniture is a personal loan but also called a bank loan.
A mortgage from a bank is similarly called a bank loan. Basically any borrowing from a bank which is not of a short term nature can be known as a bank loan.
Getting bank loans can be a tedious, but if you do some quick homework the process becomes much easier – and you can save money too.

Getting a Bank Loan
Bankers usually look at what are called the three `c's`: character, credit and collateral (a security pledged for the repayment of a loan). Character means more than not having a criminal record. The banker should feel confident that you are not going to suddenly disappear to some unknown place if the business runs into trouble. Specifically bankers like to see ties to the community such as long residence, family ties, and home ownership. A person taking a loan should have clean credit history. A couple of late credit card payments doesn’t matter much, but if a person is missing mortgage payments for three months in a row will require a good explanation. Bankers like, good character and good credit, but they live for solid collateral. (Equipment, buildings and trucks--that's the kind of stuff that bankers really like for collateral--) even if the business goes bust these solid value are likely to be worth a lot. Inventory, raw material and goods are second choices for collateral--they will lose their value more quickly than fixed assets but still be worth something.

Banks usually consider the interest rate, usually described as the Annual Percentage Rate or APR. if you're borrowing a lot of money over a long period The differences can be dramatic . The difference between 7% and 10% doesn't look like much on paper, but it's likely to make a difference of several hundred pounds to your total repayments.

Fixed APRs are a good idea, especially at the moment when the economy's worn out. With a fixed APR if the interest rate rises, your payments won't. You can often get bank loans with very low variable APRs but you're taking a big gamble if interest rates rise.

Some bank loans charge a penalty fee if you repay them early, while others don't. You can skip three consecutive payments if times are hard; it's worth having because you don't know what's round the corner. Some firms also let you vary your payments, so you can pay more when you're loaded and less when you're broke.

Prior approaching to bank, you should have all of your key documents in order, starting with a solid business plan. You will also need to have the most recent financial statements available, projections for the business (this is typically in the business plan) and a repayment plan, plus collateral.

Collateral may include:
• Hard goods such as equipment
• Real estate
• Stocks or bonds
• other personal assets
• Personal guarantees


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