EXplain the loan structuring?

Q: What are the factors on which the cost of a loan depends?

A: Cost of loan are the expenses brought about by the borrower for taking the advance because of the…

Q: Explain the term Wraparound Loans?

A: Wraparound Loans:Wraparound Loans are also called as wrap. It is a type of mortgage loan.It allows a…

Q: Define the term loan cash flow?

A: Statement of cash flow: It refers to a financial statement that shows all the cash payments and…

Q: DEFINE credit policy

A: Credit policy is the set of policies governing a company’s credit sales, outstanding amounts;…

Q: Which are the major problems facing a lender when reviewing a loan request made by a borrower?

A: Introduction: A loan agreement is nothing but an agreement between a lender and the borrower which…

Q: Define cost of borrowing.

A: Company needs to complete the goal set initially by the top level of management. These goals include…

Q: What is a syndicated loan? What are its advantages anddisadvantages?

A: Syndicated loan: It is moreover called as a syndicated bank facility, is loaning given by a bunch of…

Q: Type of CPM Loan?

A: Introduction: CPM refers to constant payment mortgage, this is nothing but an arrangement…

Q: what is the best provisioning methodology in loan impairement and why?

A: Impairment refers to a reduction in an asset's value. It's similar to depreciation but it's applied…

Q: Define mezzanine loan?

A: Mezzanine funding: Mezzanine funding is a type of funding that has together the characteristics of…

Q: How can we determine a Loan's Balance, Principal, and Interest?

A: Loan balance can be determined with the help of formulae: PV is present value r is rate N is number…

Q: What is the loan cash flow?

A: Answer: A cash flow loan is nothing but a form of debt finance in which bank lends money usually for…

Q: What is the Effect of Loan-to-Value Ratio on Loan Cost?

A: LTV ratio tells about the maximum loan approved in terms of the value of the collateral given.

Q: Why loan support is needed, explain.

A: Loans are any type pf financial credit facility in which a sum of money is lent by one party to…

Q: Illustrate some examples in the area of loan transactions?

A: Loan transactions Accounting: Loans refer to one of the best options for financing. Every business…

Q: What is Unsecured financing?

A: Whenever a person requires financial assistance, they may contact a financial institution and seek…

Q: What contingencies are commonly found in permanent or take-out loan commitments? Why are they used?…

A: The contingencies found in permanent or take-out loan commitments and their use are as follows: A…

Q: Explain the Factors Important in Mortgage Loan Pricing?

A: Mortgage loan pricing: The process of analysis and arriving at the exact interest rate for a…

Q: Differentiate between the Loan and Project Cash Flows?

A: Loan Cash Flows:   It refers to the borrowing of unsecured nature that is used by small businesses…

Q: give the definition, recognition, measurement and derecognition of "borrowing cost"

A: A uniform group of principles, standards, and procedures that explain the basic financial accounting…

Q: What two types of current assets are frequently used as security for short-term loans?

A: Short term loans are generally obtained by companies in order to support their temporary business…

Q: Discuss the relationship between Credit View and Monetary Policy.

A: Monetary Policy:Monetary Policy is a policy that is planned and implemented by the central bank of a…

Q: What is unsecured borrowing?

A: Definition:   Liabilities: The claims creditors have over assets or resources of a company are…

Q: Why might the market value of a loan differ from its outstanding balance?

A: Loan outstanding balance: The outstanding balance or loan balance is the remaining amount that is…

Q: How can we determine the borrowing rate of return?

A: The borrowing rate of return is the return that is charged on the borrowings made by the firms or…

Q: What is meant by a term-loan agreement?

A: A Loan Agreement, also known as a term loan, demand loan, or loan contract. It basically is a legal…

Q: What does “nonrecourse” financing mean?

A: Nonrecourse financing is a branch of commercial lending. It makes the lender only to repay from the…

Q: Which are the fundamental relationships to know in any loan refinancing decision include at least…

A: Loan refinancing decision involves replacement of an existing debt with a new debt. The intention of…

Q: What is a secured loan?

A: Secured Loan :  it is a type of loan in which lender lend money on the basis of collateral or…

Q: What is the role of transferring credit risk? What is the various instruments used to transfer this…

A: Risk transfer is a management strategy that involves transferring the risk from one party to another…

Q: Explain the Financing Activities?

A: Cash Flow Statement is a fundamental financial statement that renders valuable information regarding…

Q: Explain Inflation, Mortgage Pricing, and Payment Structuring

A: Inflation:  Increase in price of the good is called inflation. When inflation increases, the…

Q: Why would a lender be willing to make a participation loan?

A: Introduction: Participation loan is a form of loan in which lender is participating in net operating…

Q: Define Seller Financing?

A: Seller financing : Seller financing is real estate agreement which means seller financing the real…

Q: Differentiate between leasing and long term bank loan as source of finance

A: Banks play an important role in financing; there are various types of bank financing one of them is…

Q: Define amortized loan

A: Amortized loan is a loan in which total loan will be paid off by same periodic payments. These…

Q: What are a few things to consider before you cosign a loan?

A: Cosigning a loan means that in case the borrower is unable to make the payments due on loan the…

Q: What are the benefits to the back for amortizing a loan

A: In finance amortized loan is one in which fixed monthly payments are made by the borrower to the…

Q: What are the pros and cons of loaning?

A: Loaning is a process of lending money. An interest rate is charged by the lenders on the money lent…

Q: Explain the term Verification of Borrower Assets?

A: Borrower is the person who take money on credit from a financial or non- financial institution.…

Q: What are the credit transfer markets?

A: Financial market is called as a place where all securities such as bonds, shares, debentures etc.…

Q: Explain the term Loan Repayment Schedule?

A: Loan is a sum of money borrowed by an individual/organization from a bank or lender that has to be…

Q: What is the meaning of Loan assumably?

A: Introduction: Assumable loan is nothing but a mortgage which can be passed to another party by the…

Q: What elements do each of the loans have in common?

A: LOAN -      A loan could be a sort of debt incurred by a personal or different entity. The…

Q: Explain the Market Value of a Loan?

A: The market price of Debt refers to the value investors would be willing to shop for a company’s debt…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.