Loan Consolidation: The combining of a number of loans into a single new loan. Consolidation typically extends your repayment period and lowers your monthly payments, thereby greatly increasing the amount of interest you pay over the life of your loan.

 

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Loan Consolidation: The combining of a number of loans into a single new loan. Consolidation typically extends your repayment period and lowers your monthly payments, thereby greatly increasing the amount of in . . . View Full Definition

Open-End Loan: A loan that permits the borrower to draw money from time to time up to a credit limit. A home equity line of credit (HELOC) is an open-end loan secured by a home.

Package Loan: A real estate loan used to finance the purchase of both real property and personal property, such as in the purchase of a new home that includes carpeting, window coverings and major appliances.

Parallel Loan: A process whereby two companies in different countries borrow each other's currency for a specific period of time, and repay the other's currency at an agreed maturity for the purpose of red . . . View Full Definition

Participation Loan: A large loan made by a group of lenders, that enables a borrower to obtain financing above the legal lending limit of an individual lender.

Nonrecourse Loans: Farmers or processors participating in government commodity programs may pledge certain stored commodities as collateral and obtain a loan from the CCC at a commodity-specific, per-unit loan . . . View Full Definition

Nonproductive Loan: A loan that increases spending power, but is used in business that does not directly increase the economy's output, such as a leveraged buyout loan.

Nonpurpose Loan: A loan with securities pledged as collateral, but which is not to be used in securities trading or transactions.

Nonrecourse Loan: A loan taken by limited partners used to finance their portion of the partnership, which is secured by their ownership in the venture.

Personal Loan: Loans available from banks and other financial institutions to private individuals for personal use such as the purchase of a motor vehicle, holiday or similar item are personal loans. Repay . . . View Full Definition