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Specified amounts of money borrowers must pay lenders for the use of money or borrowed funds is are known as?
Wiki User
∙ 10y ago
interest
Wiki User
∙ 10y ago
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Who are lenders and borrowers?
Lenders are the banks and finance companies who contract loans for the purchase of vehicles, homes, and other property. Borrowers are those who contract for the loans so they may purchase vehicles, homes, and other property. Although you did not ask, dealerships and realtors are those who act as the agents of the lenders to put borrowers in debt.
What advantages and disadvantages do commercial banks gain from maintaining lenders and borrowers?
Lenders (depositors) are an essential source of any bank's main tool i.e the fund. The borrowers provide the profit (interest) which makes the whole system revolve.
Do lenders have stringent guidelines when it comes to borrowers with bad credit?
People with bad credit have a hard time getting a loan. Lenders want to ensure they will be paid back.
What is conventional uninsured mortgage?
Candidates for conventional, uninsured loans are considered prime borrowers. They have at least a 20 percent down payment, good credit and enough income to make mortgage lenders feel safe. Lenders require insurance on loans when borrowers lack sufficient money or credit to offset the risk of financing a home.
What is Long term and short term loan why these difference?
A short term loan is a small loan that is most often used by borrowers to help cover expense while between paychecks. The loan is most often due for repayment by the borrowers next paycheck.Short term loans are lent at a high interest rate and come with additional fees - acting as a form of "security" for the lenders because a short term loan is a type of unsecured loan that is often borrowed by people with bad credit.A long term loan is a loan that is lent over a longer lending term.Usually short term loan lenders require the borrower to repay their loan by the time they receive their next paycheck. However, some online lenders allow borrowers to take up to 90 to 100 days to repay their loan.
What is the relationship between lenders and borrowers?
Lenders have something (usually money) that the borrowers want; and the Borrowers have something that the Lenders want (their money back).
Why borrowers considered as the slaves of the lenders?
Because - the borrower is 'in debt' to the lender until the borrower either returns the object (or money) borrowed.
Who are lenders and borrowers?
Lenders are the banks and finance companies who contract loans for the purchase of vehicles, homes, and other property. Borrowers are those who contract for the loans so they may purchase vehicles, homes, and other property. Although you did not ask, dealerships and realtors are those who act as the agents of the lenders to put borrowers in debt.
What is the interest?
The rate of interest is different in different countries, for different amounts, for different periods, for different purposes, from different lenders, for different borrowers and so on. You need to be more specific.
What advantages and disadvantages do commercial banks gain from maintaining lenders and borrowers?
Lenders (depositors) are an essential source of any bank's main tool i.e the fund. The borrowers provide the profit (interest) which makes the whole system revolve.
What are the typical loan amounts offered by payday lenders, and how do these amounts vary based on factors such as income and state regulations?
The typical loan amounts offered by payday lenders can vary based on several factors, including the borrower's income, state regulations, and the lender's policies. Here are some general observations regarding payday loan amounts: **State Regulations:** State regulations play a significant role in determining the maximum loan amounts for payday loans. Each state may have specific laws governing payday lending, including caps on loan amounts. Some states set maximum payday loan amounts as a percentage of the borrower's monthly income. **Income Level:** Payday lenders often determine loan amounts based on the borrower's income. Lenders may look at the borrower's pay stubs or other proof of income to assess their ability to repay the loan. Loan amounts are typically tied to the borrower's upcoming paycheck. **Lender Policies:** Different payday lenders may have varying policies regarding loan amounts. Some lenders may have a set maximum limit for all borrowers, while others may adjust the loan amount based on individual financial circumstances. **First-Time Borrowers vs. Repeat Customers:** Some payday lenders may limit the initial loan amount for first-time borrowers. Subsequent loans may have higher limits for repeat customers who have established a repayment history with the lender. **Online vs. In-Store Lending:** Online payday lenders may have different loan amount policies compared to brick-and-mortar stores. Online lenders may consider additional factors and may offer higher loan amounts in some cases. **Risk Assessment:** Payday lenders assess the risk associated with each borrower. Higher-risk borrowers may be approved for smaller loan amounts, while those deemed lower risk may qualify for larger loans. **Collateral and Secured Loans:** Payday loans are typically unsecured, meaning they do not require collateral. However, some lenders may offer secured payday loans, which could potentially result in higher loan amounts if collateral is involved. **Maximum Allowable Amounts:** State regulations may set a maximum allowable loan amount, and lenders must adhere to these limits. Borrowers should be aware of the legal restrictions in their state. It's important for borrowers to be aware of their state's regulations and carefully review the terms and conditions of any payday loan. Borrowers should only borrow what they can afford to repay and explore alternative lending options if needed. Why Use GreenDayOnline Loans Get emergency cash to help you quickly No hard credit checks Get an approval decision fast $100 to $5,000 can be used for any purpose Safe Secure and 100% online Call Us On: (800) 424-2789 greendayonline dot com
What do you called a charge borrowers pay to lenders?
Interest, late fee, returned check charge...
Do lenders have stringent guidelines when it comes to borrowers with bad credit?
People with bad credit have a hard time getting a loan. Lenders want to ensure they will be paid back.
When financial institutions lend money they charge borrowers?
The banks or lenders charge interest. The amount depends on your credit.
Getting a Low Interest Rate for an Auto Loan?
Interest rates for auto loans will vary from lender to lender so savvy borrowers should check with multiple lenders before choosing who to borrow from. Lenders base the interests rates they offer their borrowers on factors such as the borrowers' credit report score, income and collateral. Borrowers who are clearly in a position to afford the vehicles they are purchasing and who have credit history that puts them in good standing will be able to secure low interest rates for their auto loans, especially when they carefully consider the rates offered by different lenders before selecting their loan provider.
What Are Direct Lenders?
A direct lenderdirectly gives to customers, without brokering the borrowed funds.
What is conventional uninsured mortgage?
Candidates for conventional, uninsured loans are considered prime borrowers. They have at least a 20 percent down payment, good credit and enough income to make mortgage lenders feel safe. Lenders require insurance on loans when borrowers lack sufficient money or credit to offset the risk of financing a home.
