A loan involves borrowing money for a set period of time for repayment under terms that are agreeable to the lender. In most cases, loans involve interest payments, which result in the lender receiving more money back over time than was initially lent. Obtaining a loan can require a multistep process. In most cases, borrowers seek out loans through banks, credit unions or other similar institutions. Approval can depend on the amount request, the creditworthiness of the applicant and sometimes the purpose for the request. Loans can be backed with collateral, secured, or given on signature and faith alone, unsecured.

Improve Your Credit Score - Free Consultation

What is a simple interest loan?

A simple interest loan assesses fees based only on a flat percentage. The principal amount is multiplied by an interest rate, and the resulting... »

What Is Simple Interest?

Simple interest is the most basic form of financing charge a lender can issue. With simple interest, a flat percentage fee is added to... »

How do you qualify for a portfolio loan?

Qualifying for a portfolio loan is easier than qualifying for most standard loans. These loans do not need to meet the conforming standards of... »

What Is a Portfolio Loan?

A portfolio loan is held permanently by the lending institution that extends it. Since the loan is never sold on the secondary market, it... »

More Articles in Loan

What is a simple interest loan? What Is Simple Interest? How do you qualify for a portfolio loan? What Is a Portfolio Loan? How does zombie debt affect your credit? How do you fight zombie debt? What Is Zombie Debt? Collateral Loans: Title Loans How do you qualify for a conduit loan? What are the advantages of conduit loans? What are the drawbacks of conduit loans? What Is a Conduit Loan? What is the best way to refinance your mobile home loan ? Is interest on a mobile home loan tax deductible? Can you get a mobile home loan with bad credit? What are the IRA withdrawal exceptions? What are the tax implications of borrowing from your IRA? Can you borrow tax-free money from your IRA? What is a 60-day grace period for an IRA account? What are the early withdrawal exceptions for an IRA account? What Is a Tax Lien? What Is a Non-Tax Lien? Does Rent to Own Furniture Save You Money? Rent-to-Own Electronics: Are They Worth It? Are Rent-to-Own Appliances a Good Idea? Rent to Own Programs Explained The Basics of Debt Equity 3 Types of Debt that May Result in Wage Garnishment What Happens to a Loan if the Borrower Dies? Chapter 7 Bankruptcy Explained 4 Situations to Consider Peer-to-Peer Lending What is Social Lending? How to Identify Predatory Lending Practices Getting Loan Approval: Credit History vs Down Payment Your Loan against a Lawsuit Was Denied: What Now? 4 Questions a Lawsuit Loan Lender Will Ask You How Long Does It Take to Get Approved for a Loan for a Lawsuit? Where to Find Loans for Lawsuit Costs and Expenses 5 Lawsuit Loan Funding Options to Consider 3 Reasons a Lender Could Deny Loans for Lawsuits What Does Getting a Loan against a Lawsuit Mean? 5 Tips before Applying for a Loan for Lawsuits 4 Reasons Lawsuit Loans Are a Bad Idea How a Commercial Lawsuit Loan Can Keep Your Business Afloat What Is a Lawsuit Loan? 4 Requirements for Getting a Structured Settlement Loan How Difficult Is It to Obtain a Structured Settlement Loan? When a Structured Settlement Loan Can Get You in Trouble 4 Common Uses for a Structured Settlement Loan What Types of Lenders Offer Structured Settlement Loans? 4 Reasons to Get a Structured Settlement Loan How to Repay Your Settlement Loan after You Win the Case What Can I Use Lawsuit Settlement Loans For? Lawsuit Settlement Loan Limits 4 Types of Cases that Qualify for a Pre-Settlement Loan What Are Structured Settlement Loans? Why Pre-Settlement Loans Don't Require Good Credit What Are the Upfront Costs Related to Settlement Loans? What Is a Settlement Loan? Who is Eligible for Credit Union Membership? The Value of Using Automatic Loan Payment Services What Is Loan Delinquency? 3 Reasons Consumers Choose Banks over Credit Unions What Happens to Your Credit Score if You Marry Someone with Bad Credit? The Tax Consequences of Filing for Bankruptcy Can You File for Bankruptcy More than Once? How to Prepare for a Consultation with a Bankruptcy Lawyer How to Prepare for a Meeting with a Trustee in Bankruptcy What is a Trustee in Bankruptcy? What Do you Need to Start the Bankruptcy Process? How Will My Spouse Be Affected by Bankruptcy? What Happens to Retirement Savings during a Bankruptcy? 4 Ways a Trustee in Bankruptcy can Help Protect Debtors Do You Need an Attorney when Filing for Bankruptcy? 4 Reasons a Corporation Should File for Bankruptcy What Happens when a Cosigner Declares Bankruptcy? The Difference between a Discharged Bankruptcy and a Dismissed Bankruptcy 3 Debt Collection Practices Prohibited By Law How to File a Complaint about a Debt Collection Agency 4 Types of Debt Bankruptcy Can Erase Filing for Bankruptcy? What to Do if You Can't Afford a Lawyer Business Bankruptcy Options Explained 4 Features to Look for in a Bankruptcy Lawyer What Happens if a Bankruptcy is Dismissed? 5 Things You Can Do to Increase Your Chances for a Bankruptcy Discharge How Much Will Filing for Bankruptcy Cost? 4 Assets You Can Keep if You File for Bankruptcy 3 Types of Credit Lines that Do Not Help Build Your Credit Rating Loan Interest: Simple and Compound Interest Structures Compared Legal Actions That Can Be Taken against You for Loan Non-Payment? Unfair Lending Practices: Single-premium Credit Insurance Explained Fixed and Floating Interest Rates Compared Unfair Lending Practices: Unjustified Risk-Based Pricing Explained Comparing the Advantages and Disadvantages of a Bullet Loan What is a Bullet Loan? What is the Truth in Lending Act? 3 Things You Can Do to Improve Credit Worthiness 3 Signs You Are a Victim of Loan Fraud How Credit Rating Agencies Determine Credit Worthiness Who Can Provide Help for Victims of Predatory Lending? 4 Tips to Protect Yourself from Predatory Lending How the Federal Reserve Determines the Interest Rate 3 Common Criticisms about Credit Rating Practices How Inflation Affects Your Interest Rate The Benefits of Buying a Home in a Mortgage Auction Comparing the Features of Conforming and Non-Conforming Loans Comparing the Features of Conforming and Non-Conforming Loans Refund Anticipation Loan Guidelines for the Self-Employed The Basics of Assuming a Boat Loan Residential Land Loan Savings Through Smart Bargaining How to Avoid Falling into Subprime Status How to Get Out of Subprime Status What Fees to Expect on a Refund Anticipation Loan Comparing a Recourse Loan and a Non-Recourse Loan How to Borrow against Your IRA Account Does an IRA Loan Really Exist? How the Economy has Affected the Peer-to-Peer Lending Industry Peer-to-Peer Lending Explained The Risks of Peer-to-Peer Lending The Benefits of Peer-to-Peer Lending How is the Loan Value of a Life Insurance Policy Determined? 4 Scenarios to Take Out a Life Insurance Policy Loan The Disadvantages of a Life Insurance Policy Loan The Benefits of a Life Insurance Policy Loan What is a Life Insurance Policy Loan? 4 Requirements for Private Money Loans Is a Private Money Loan Right for You? The Pros and Cons of a Private Money Loan What is a Private Money Loan? 4 Key Differences Between Banks and Credit Unions FICO Score Ranges: Where You Want to Be How Your Credit Score is Calculated? Difference Between APY & APR How Do 401K Loans Work? Loans for People with Poor Credit What are the Tax Penalties of Getting a 401K Loan? 401K Loans Explained How to Qualify for a Mobile Home Loan 4 Requirements to Get a Mobile Home Loan Risks of Mobile Home Loans Benefits of Mobile Home Loans Applying for a Federal Land Construction Loan The Slow Economy's Impact on Federal Loan Programs What are Closed-End Loans 2 Disadvantages of a Closed-End Loan 2 Advantages of a Closed-End Loan How Does the Prime Interest Rate Affect my Loan Rates Credit Union Services: Understand Your Options Truth in Lending Act: Know Your Rights Home and Land Equity Loans Compared Debt Free? How a Loan Can Protect Your Credit Rating 2 Loan Types that Do Not Offer a Rescission Period How Predatory Lending Affects Military Families Comparing Instant Online Cash Loans Using Excel Does Checking My Credit Report Affect My Credit Score? What is the Right of Rescission? How to Figure Out the Break-Even Point Available Boat Loan Terms: 15 vs 20 Year? What is the Break-Even Point? Banks and Credit Unions: What You Should Know Credit Union or Bank for Motorcycle Loans? Approval Guaranteed! Motorcycle Loan Application Tips Do Online Motorcycle Loan Lenders Offer Better Service? Used Motorcycle Loan Lenders to Consider Refinance Your Motorcycle Loan How to Check Your Credit Score Residential and Investment Property Mortgage Loans: 3 Differences Investment Loan Risk Reduction for Higher Net Profits What is Negative Amoritization? Saving on Loan Broker Fees 3 Requirements for a Bad Credit Land Loan Land Loan Collateral: What Lenders Will Accept Land Loan and Mortgage Terms and Restrictions Should You Apply for an Instant Loan Decision Online? Guaranteed Instant Loan Questions for the Concerned Borrower Loans With Instant Online Approval: The Fine Print Qualifying for the Best Motorcycle Loan Rates Is Getting a Motorcycle Title Loan a Feasible Option? I've Declared Bankruptcy - Is a Motorcycle Loan Possible? Using Credit vs. Motorcycle Loans: Pros and Cons Motorcycle Loan Basics Finding Instant Loans Online Without Google: 10 Alternatives Apply for a Payday Loan Without Steady Paycheck Optimize Your Application for Instant Loan Approval Finding Competitve Instant Cash Loans Online Apply For a Bank Loan Extension What is a Cosigner? 4 Signs of Predatory Lending Bad Credit Instant Loan Approval -- What's the Catch? Can Instant Cash Advance Loan Repayments Improve Your Credit? Instant Cash Loan Pros and Cons Finding a Instant Loan While Guarding Your Privacy Evaluating Instant Cash Loan Websites: A Comparison Table 3 Major Credit Bureaus: Who They Are Instant Loan Karma: How Fast Cash Can Haunt You How To Apply for a VA Loan While In Service How to Apply for a Jumbo VA Loan How a Typical Instant Money Loan Works Why You Should Repay an Instant Approval Cash Loan ASAP Managing an Instant Cash Advance Loan Responsibly Examining Instant Decision Loans: Secured and Unsecured Online and Offline Instant Cash Loans Compared Choosing The Best Subprime Loan Lenders For You What is Loan Servicing? Commercial Boat Loans: Start Your Nautical Industry What Does Loan Maturity Mean? When to Expect Boat Title After Loan Completion Subprime Loans: The Pros and Cons Revolving Credit For Students: Pros and Cons Selecting the Best Revolving Credit Line for You How Revolving Credit Works What is Loan Origination? No Doc Loans: Evaluating the Qualifications Hybrid Loans: What to Consider Are Land Equity Loans the Same as Home Equity Loans? Secured vs. Unsecured Loans Can You Refinance An Interest Only Loan? How a Wholesale Loan What is a Subprime Loan? Which Type of Bank Offers Boat Loans? Getting A Used Boat? Loans and Other Financing Options How Does Boat Loan Financing Differ from Car Loans? How to Secure a Low Rate Boat Loan Your Boat Loan: Refinance the Smart Way Finding a Loan to Buy Land with Low Interest Land Only Loans: An Uncommon Financing Option Land Development Loans: How to Finance Commercial Properties Bank Land Loans: Funding and Developing Vacant Lots Where to Get Land Loan Financing for Residential Lots 3 Types of Land Loans Clarified The Difference Between Vacant and Raw Land Loans Is a Land Home Loan Under Bankruptcy Possible? Hard Money Land Loans for Commercial Development Residential and Vacant Land Lot Loans: A Comparison Investment Property Loans Demystified Getting The Best Land Loans Refinance Your Land Loan the Right Way Refinance Your Land Loan the Right Way How Land Purchase Loans Can Help Farm Land Loans Filing Your Federal Loan Application Federal Loans When is early payoff a good investment? Why do FICO scores matter so much? What are jumbo loans? What are Truth in Lending laws? What is a Good Faith Estimate?"" What is an Overage? What is the best way to obtain your credit report? What is the difference between Biweekly and a Bimonthly? What is the difference between Qualifying and Approval? What mistakes do shoppers make? How long should it take -- why so long? How much house can you afford? How to Make Wise Remodeling Decisions in Today's Jittery Housing Market Increasing the Market Value of Your Home Do lender inquiries hurt my score? How do I find an ethical loan provider? How do I improve my FICO score? How do I interpret my credit report? 5 Tips That Will Lower Your Homeowners Insurance Costs Are VA Loans a good deal?