Sentences with phrase «means less risk to the lender»
Essentially, auto loans are secured loans, with the vehicle itself acting as a sort of collateral against default (i.e., if you don't pay back your loan, the lender can sell the car to get their money back), which means less risk to the lender.
http://www.badcredit.org/ Not exact matches
In practise though, lenders aren't so keen on that scenario, they would rather have shareholders sharing the risk, and lending a less than 100 % proportion of the total of a companies finance means they are much more likely to get their money back if things go horribly wrong.
Banks deal with less risk meaning that they can offer rates as low as 2.7 % to customers but if private lenders take this approach, it could have dire consequences.
This means that a borrower still owns 15 % of the property, which is sufficient for our private lender but anything less than that is too huge a risk to bear.