Learn how to evaluate and get a loan, from the different loan types to how to protect yourself from predatory lenders.

Frequently Asked Questions

Key Terms

Best Boat Loan
Best Boat Loans for April 2024
Loan
Loans Terms: Specific Terms Defined & How to Negotiate Them
Loan
What Is a Secured Loan? How They Work, Types, and How to Get One
Two smiling young children sit poolside and enjoy ice cream pops.
Best Pool Loans for April 2024
Collateral
Collateral Definition, Types, & Examples
Amortized Loan
Amortized Loan: What It Is, How It Works, Loan Types, Example
Covenant
What Is a Covenant? Definition, Meaning, Types, and Examples
Financing
Financing: What It Means and Why It Matters
Lender
Lenders: Definition, Types, and How They Make Decisions on Loans
Loan
What Is a Loan, How Does It Work, Types, and Tips on Getting One
Young man at laptop, calculating loan costs
Simple Loan Calculator
African American female using smartphone to calculate taxes
Loan Amortization Calculator
Amortization Table
Amortization Calculator
Applicable Federal Rate (AFR): The minimum interest rate that the IRS allows for private loans.
Applicable Federal Rate (AFR): What It Is and How To Use It
Balloon Payment
Balloon Payment: What It Is, How It Works, Examples, Pros and Cons
Grace period
Grace Period Definition for Borrowers, How It Works, Examples
Guarantor
What Is a Guarantor? Definition, Example, and Responsibilities
IOU
IOU: What It Is, How It Works, and Examples
Line of Credit (LOC)
Line of Credit (LOC) Definition, Types, and Examples
Loan
NINJA Loan: Definition, History, Current Availability
bank
Trade Line: Definition, How It Works, and Included Records
mailbox stuffed with letters with one saying payment due in red
Add-On Interest Definition, Formula, Cost vs. Simple Interest
Businessman Receiving Envelope From Colleague
What Is Asset-Based Lending? How Loans Work, Example and Types
Loans
Balloon Loan: What It Is, How It Works, Example, and Pros & Cons
Speeding bullet
Bullet Repayment: Definition, Examples, Vs. Amortization
Credit Facility
What Is a Credit Facility, and How Does It Work?
What Is the Default Rate? Definition, How It Works, and Criteria
Exposure at Default (EAD)
What Is Exposure at Default (EAD)? Meaning and How To Calculate
Fixed-Rate Payment: What it is, How it Works, Example
Woman leaning against small model house
What Is a Loan Commitment? Definition, How it Works, and Types
Time is money
Periodic Interest Rate: Definition, How It Works, and Example
Term Loan: Borrowing a lump sum with an agreed schedule for repayment.
Term Loan Definition, Types, and Common Attributes
Financial Data Analyzing
What Is Total Debt Service (TDS) Ratio? Example and Calculation
Variable Interest Rate: Definition, Pros & Cons, Vs. Fixed
a neoclassical building
Senior Bank Loan: Definition, How It Works, Rates & Risks
Guaranteed Loan: Definition, How It Works, Examples
Loans
Recourse vs. Non-Recourse Loan: What's the Difference?
Bank Guarantee vs. Letter of Credit
Bank Guarantee vs. Letter of Credit: What's the Difference?
Bank Confirmation Letter (BCL)
What Is a Bank Confirmation Letter (BCL)? How to Get One
Two people shaking hands in an office meeting with a third person looking on
What Is a Bridge Loan and How Does It Work, With Example
African American Banker and Hispanic Soldier Confer
Covenant-Lite Loan: Meaning, Overview, Pros and Cons
Haircut in Finance
Haircut: What It Means in Finance, With Examples
People in a business meeting in an office
What Is a Leveraged Loan? How Financing Works, and Example
Senior business restaurant doing paperwork at laptop
Negative Pledge Clause: Definition, How It Works, Pros & Cons
Nonperforming Loan (NPL)
Nonperforming Loan (NPL) Definitions, Types, Causes, Consequences
Digital security concept
Non-Recourse Debt: Definition, Example, vs. Recourse Debt
Notepad with prepayment on a wooden surface.
Prepayment: Definition, How It Works, Types, and Penalties
Two women in an office meeting in which one seems upset
Purchase Money Security Interest (PMSI) Definition, How It Works
Bank calculates the home loan rate
Rule of 78: Definition, How Lenders Use It, and Calculation
Unsecured Loan
Unsecured Loans: Borrowing Without Collateral
Lender going over a warehouse loan with a borrower
Warehouse Lending: Definition and How It Works in Banking
Couple looks over their finances after getting a loan from a loan shark
Loan Shark: Definition, Example, Vs. Payday Lender
Lender discussing a whole loan with two borrowers
Whole Loan: What It Is, How It Works, Example
Business individuals discussing non-recourse financing
Non-Recourse Finance: Definition, Uses, Vs. Recourse Loan
Banker has a discussion with two revolvers
What Is a Revolver? Definition in Lending and How It Works
Revolving Loan Facility: A form of credit issued by a financial institution that the borrower can draw from and pay back multiple times.
Revolving Loan Facility Explained: How Does It Work?
Standby Letter of Credit (SLOC)
What Is a Standby Letter of Credit (SLOC), and How Does It Work?
Low angle view of female loan officer reading book
Loan Officer: Definition, What They Do, Benefits and Compensation
Multinational development banker goes over soft loan with client
Soft Loan: Meaning, Overview, Pros and Cons
Lender discusses loan modification with a client
Loan Modification: Overview, Government Programs, Application