Sentences with phrase «higher loan risk»

Sub-prime mortgages have a higher interest rate to make up for the higher loan risk when they offer you this loan.

Not exact matches

Quite apart from the argument over OSFI - style oversight, the former federal official and others stress this segment of the market at least requires more transparency and clearer data so regulators and the Bank of Canada can better understand the credit landscape and the extent of high - risk loans issued by private lenders.

It may sound like a classic entrepreneurial story: taking on a massive student - loan debt load and erasing it through hard work and perseverance while finding success in the high - risk startup world.

To cover some of the risk, lenders charge higher interest rates for longer term loans.

Unsecured loans typically come at a high interest rate due to the risk involved.

These types of loans also carry other risks, such as demand provisions under which a bank can arbitrarily demand repayment, as well as high default rates, putting borrowers in a difficult spot.

They also use risk - based pricing to issue loans with rates that are equal or slightly higher than banks.

«What we're doing is reducing exposure to more cyclical industrial corporate credit risk around the globe — high yield bonds, bank loans, investment - grade corporate bonds,» said Collins.

Big Wall Street banks have found a way to continue funneling money to high - risk borrowers — by lending to other institutions who make the so - called subprime loans.

Subordinated debt: Has a higher interest rate than senior debt does, in exchange for slightly higher risks (since loans get paid only after senior debt is paid).

A: Microloan interest rates are much higher than typical loan rates because their risks are higher: 12.5 % to 15 % is common.

You do not want to put your home at risk with a home equity loan nor do you want to run up high - interest credit card debt or dip into money in your retirement portfolio, which you'll need for your future.

Having a poor credit score will either keep you from obtaining credit altogether or place you in a high - risk category, which means that if you're approved for credit or loans, the interest rates you'll be offered will be significantly higher than someone with excellent credit.

Jumbo loans have higher interest rates to compensate for the additional risk.

You'll have more trouble getting a loan and will likely pay higher interest for the unknown risk that you present.»

When rates are rising interest rate risk is higher for lenders since they have foregone profits from issuing fixed - rate mortgage loans that could be earning higher interest over time in a variable rate scenario.

A seemingly insignificant misclassification of your industry could put you in a higher risk category and make it more difficult for your business to qualify for a loan.

However, there is the risk that the variable interest rate will be much higher if the average student loan interest rate has risen significantly after the set period of time is over.

This is because there is a higher risk that you won't pay back the loan if you borrow a lot or if you plan to repay the loan over a long period of time.

Many lenders consider the increased flexibility of a business credit line higher - risk financing than a more traditional term loan because the business is borrowing in the future based upon their creditworthiness today.

Because a small business loan is considered a higher - risk loan, to reduce that risk to the lender, the SBA will frequently guarantee 50 % to 85 % of an eligible loan (within their 7 (a) loan program, for example).

Based on BlackRock's long - term assumptions, some of the better return - to - risk ratios are in high yield bonds, EM dollar - denominated debt and bank loans.

Private lenders are looking for the same information and will conduct similar due diligence as the banks, but they typically specialize in an industry and are more willing to take on higher - risk loans if they see the potential.

Because small businesses are considered higher risk than their larger cousins, the SBA loan guarantee helps banks offer more flexible loan terms, meaning borrowers can be approved even if they have fewer assets than what would be required with a traditional term loan at the bank.

Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.

As such, we regularly approve loans for businesses with limited credit history (e.g. 2 - 3 months), and that have credit scores deemed «high risk» or «bad» by commercial rating firms.

Variable rates currently offer lower interest rate options, resulting in additional interest savings, but keep in mind — variable rate student loans are often higher risk for borrowers than fixed interest rate student loans.

While crowdfunding websites offer loans to people who can't or don't want to get money elsewhere, these sites also let people invest their money in these high - risk loans.

Investing in higher - yielding, lower - rated, floating - rate loans and debt securities involves greater risk of default, which could result in loss of principal — a risk that may be heightened in a slowing economy.

Students who rack up a large amount of debt and begin their careers in an entry - level position can be particularly at risk, especially if they owe larger monthly payments on high - interest debt, such as private student loans.

Personal guarantees will frequently be paired with collateral requirements to lower the bank's risk in lending to you (small business loans are considered risky for banks due to the higher failure rates of small businesses).

They automate the loan underwriting, data management and risk assessment processes and provide a platform where accredited and institutional investors seeking high - yield, short - term, asset - collateralized investments can be matched with borrowers seeking more timely and consistent sources of funding for rehabbing properties across America.

«Short - Term Loans for Consumers Research Findings Illustrate the High Risk of High - Cost Short - Term Loans for Consumers»

To compensate for these risks, lenders may charge higher interest rate for jumbo loans.

«Short - Term Loans for Consumers Research Findings Illustrate the High Risk of High - Cost Short - Term Loans for Consumers» Jean Ann Fox, Consumer Federation of America, February 2012

Once my student loans are done for, we definitely plan on investing more aggressively, and that includes hunting for some high risk but potentially high reward investments.

Vague terms and condition statement — In some loan services, there may be certain terms and conditions that place you in a high - risk situation.

Specifically, Defendants made false and / or misleading statements and / or failed to disclose that: (i) the Company was engaged in predatory lending practices that saddled subprime borrowers and / or those with poor or limited credit histories with high - interest rate debt that they could not repay; (ii) many of the Company's customers were using Qudian - provided loans to repay their existing loans, thereby inflating the Company's revenues and active borrower numbers and increasing the likelihood of defaults; (iii) the Company was providing online loans to college students despite a governmental ban on the practice; (iv) the Company was engaged overly aggressive and improper collection practices; (v) the Company had understated the number of its non-performing loans in the Registration Statement and Prospectus; (vi) because of the Company's improper lending, underwriting and collection practices it was subject to a heightened risk of adverse actions by Chinese regulators; (vii) the Company's largest sales platform and strategic partner, Alipay, and Ant Financial, could unilaterally cap the APR for loans provided by Qudian; (viii) the Company had failed to implement necessary safeguards to protect customer data; (ix) data for nearly one million Company customers had been leaked for sale to the black market, including names, addresses, phone numbers, loan information, accounts and, in some cases, passwords to CHIS, the state - backed higher - education qualification verification institution in China, subjecting the Company to undisclosed risks of penalties and financial and reputational harm; and (x) as a result of the foregoing, Qudian's public statements were materially false and misleading at all relevant times.

High - risk loan factors, which are associated with higher mortgage rates, include a history of late or «slow» repayments to creditors; borrowing for a multi-unit home or a condominium; and, borrowing to finance a vacation home or an investment property.

Floating - rate loans» low credit ratings indicate greater potential risk of default relative to investment - grade bonds (though default rates for floating - rate loans historically have been lower than on high - yield bonds).

Banks attach higher interest rates to jumbo loans in an effort to compensate for the additional risk.

Yet, bond investors have only piled on more risk, from record growth in high - risk, covenant - lite loans to leveraged - loan funds holding billions in collateral in over-indebted retailers to sustained lows in junk bond yields.

These banks work tirelessly to build credit and risk cultures that protect the bank from the type of high - risk loans that have crushed Bank of America, Regions Financial, Citi, and others.

Traditional lenders look for high - dollar collateral, like buildings and equipment, to finance a sale, and most buyers don't have the hard assets needed for a loan without putting their personal assets at risk.

There are extra risk - based loan fees for manufactured housing, so rates are slightly higher.

Rates on an unsecured business loan vary depending on your risk factor, however, they can be as low as 14 % or much higher if you're considered high risk.

With an unsecured business loan, interest rates tend to be higher so that lenders can make up for the added risk.

Even if you are considered a moderate - or high - risk borrower, some finance companies will be willing to offer a near - prime car loan.

In the open market, a VA loan should carry a higher rate due to more lenient lending guidelines and higher perceived risk.

Be aware that jumbo loans have higher interest rates to offset the added risk on the part of the lender.