Payday loan

A payday loan (also called a paycheck advance or payday advance) is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. The loans are also sometimes referred to as cash advances, though that term can also refer to cash provided against a prearranged line of credit such as a credit card (see cash advance). Legislation regarding payday loans varies widely between different countries and, within the USA, between different states.

Some jurisdictions impose strict usury limits, limiting the nominal annual percentage rate (APR) that any lender, including payday lenders, can charge; some outlaw payday lending entirely; and some have very few restrictions on payday lenders. Due to the extremely short-term nature of payday loans, the difference between APR and effective annual rate (EAR) can be substantial, because EAR takes compounding into account. For a $15 charge on a $100 2-week payday loan, the APR is 26 × 15% = 390% but the EAR is 1.15²⁶ - 1 × 100% = 3686%. Careful reporting of whether EAR or APR is quoted is necessary to make meaningful comparisons.

FOR MORE VISIT-http://www.guardian.co.uk/money/2008/jun/29/interestrates.internet

http://www.denverpost.com/ci_8298922?source=bb

http://www.readthehook.com/stories/2008/01/31/TOUGHCUSTOMER-0705.rtf.aspx

Acom

Acom (アコム, Akomu^?, TYO: 8572) is one of Japan's largest consumer loan companies, or sarakin. The name "Acom" stands for Affection, Confidence and Moderation. The company was founded by Masao Kinoshita, who was later replaced by his eldest son Kyosuke Kinoshita, the current chairman of the company. In addition to providing loans, Acom issues credit cards.

FOR MORE VISIT-http://www.acom.co.jp/ir/english/index.html

Student Loans Company

The Student Loans Company Limited is a non-departmental public body of the United Kingdom government, responsible for the provision of financial support to students attending university. The company offers loans to students at the rate of inflation - as measured by the retail price index - and administers repayment once the student has entered employment and is earning a salary in excess of a defined threshold, currently £15000.

Historically loans were collected directly from the student by direct debit (mortgage style loans), more recently Income Contingent Repayment (ICR) loans have been introduced. ICR loans are paid back via Her Majesty's Revenue and Customs who actually collect the repayments and send the details of the repayment collected back to the Student Loans Company. Borrowers outside the UK tax system repay directly to the Student Loans Company.

The Company was established in 1990 when it lent out £190 million to eligible students. Since then, changes in the provision of higher education have seen the phasing out of non repayable maintenance grants, and the charging of tuition fees. In the financial year 2004-05, the Company lent out £2,712 million, with total outstanding loans valued at £15,974.6 million at the end of that financial year.

The Student Loans Company is based at Bothwell Street, Glasgow, Scotland, and also has offices at Hillington, Darlington and Colwyn Bay.

The UK Government sold off two tranches of debtor accounts in 1998 and 1999 to Finance for Higher Education (FFHE), a company formed by Greenwich NatWest, and Honours Student Loans Company a trading name of Honours Trustee Limited, a private limited company

FOR MORE VISIT-http://www.slc.co.uk/
http://www.studentloanrepayment.co.uk/
http://www.honoursstudentloans.co.uk/

Industrial loan company

An industrial loan company (ILC) or industrial bank is a financial institution in the United States that lends money, and may be owned by non-financial institutions. Though the bank itself would be heavily examined by the Federal Deposit Insurance Corporation and state regulators, a debate exists to allow parent companies such as Wal-Mart, which would remain unregulated by the financial regulators, to own such a bank. "FDIC-insured entities are subject to Sections 23A and 23B of the Federal Reserve Act, which limits bank transactions with affiliates, including the parent company." (FDIC.gov) The ILC is permitted to have branches in multiple states (which is permitted by many states on a reciprocal basis). They are state-chartered, and insured by the Federal Deposit Insurance Corporation. They are currently chartered by seven states, with most chartered by Utah. Other states permitting them include California, Colorado, Minnesota, Indiana, Hawaii, and Nevada.

Companies that have set up industrial banks include UBS, General Electric Co., General Motors, Merrill Lynch & Co. Inc., Morgan Stanley, American Express Co. Target Corp, Nordstrom, Harley-Davidson, First Data, UnitedHealth Group, BMW, and Sallie Mae. In May 2005, Warren Buffett's Berkshire Hathaway, Inc. announced plans to operate a Utah industrial bank to handle consumer loans for its R.C. Willey Home Furnishings stores. The Blue Cross and Blue Shield Association, automakers Ford Motor Co. and DaimlerChrysler AG, Ceridian Corp., Home Depot and DaimlerChrysler await approval.

Top Ten FDIC-Insured Industrial Banks by Assets, 2005 ($ millions)

FOR MORE VISIT-http://www.fdic.gov/about/learn/advisorycommittee/ilc060204.html

MORTGAGE LOAN

A mortgage loan is a loan secured by real property through the use of a mortgage (a legal instrument). However, the word mortgage alone, in everyday usage, is most often used to mean mortgage loan.

A home buyer or builder can obtain financing (a loan) either to purchase or secure against the property from a financial institution, such as a bank, either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably.

Mortgage loan types

There are many types of mortgages used worldwide, but several factors broadly define the characteristics of the mortgage. All of these may be subject to local regulation and legal requirements.

* Interest: interest may be fixed for the life of the loan or variable, and change at certain pre-defined periods; the interest rate can also, of course, be higher or lower.
* Term: mortgage loans generally have a maximum term, that is, the number of years after which an amortizing loan will be repaid. Some mortgage loans may have no amortization, or require full repayment of any remaining balance at a certain date, or even negative amortization.
* Payment amount and frequency: the amount paid per period and the frequency of payments; in some cases, the amount paid per period may change or the borrower may have the option to increase or decrease the amount paid.
* Prepayment: some types of mortgages may limit or restrict prepayment of all or a portion of the loan, or require payment of a penalty to the lender for prepayment.


For more visit: http://fcac.gc.ca/eng/publications/mortgages/Mortgage_TOC_e.asp
http://www.usa.gov/shopping/realestate/mortgages/mortgages.shtml
http://www.dmoz.org/Business/Financial_Services/Mortgages//