A debenture is type of a traditional loan, usually a long-term loan, that is borrowed by a company. There are usually different terms set out during the agreement including the interest, the loan amount, repayment terms, enforcement terms in case of a default and property provisions. Debentures differ from other ways of raising capital, such as bank loans, equity shares and bonds.Know More
There are two types of debentures, namely convertible and non-convertible debentures. Convertible debentures are considered hybrid securities that can be converted into equity shares. Investors prefer convertible debentures because they allow for conversion while companies like them due to their lower interest rates. Non-convertible debentures cannot be converted into equity shares thus making their interest rates very high.
Most debentures in the United States are usually unsecured but in other countries they are usually secured through the assets of the borrowing company. Debentures have a fixed interest rate, and the interest is paid prior to paying dividends to the shareholders. Investors who have debentures lack the privilege of voting during shareholders' meetings. The benefit that debentures have over other types of loans is the lower interest rates. Investors also have an effortless experience selling debentures in the stock market and have minimal risks compared to equities.Learn more in Personal Loans
ACE Cash Express notes that applicants for a car title loan do not have to be employed, but should be able to prove a consistent income stream. Applicants who apply for a title loan online are required to provide banking account information to facilitate the transfer of funds if approved for the loan. In-store applicants are not required to have a bank account to apply for a title loan.Full Answer >
Payday loans are small, short-term loans, typically of $500 or less, that mature or require payment on the borrower’s next payday. Prospective borrowers apply for payday loans either in person at a check-cashing center, online through a direct-lender’s site or via a loan-matching service. Common features associated with these loans include exorbitant interest rates or financing fees, small principals and two-week maturity dates.Full Answer >
A combo loan is a form of mortgage loan involving a combination of two loans against one asset, most commonly a house. The combo loan was created to eliminate the borrowers' need for private mortgage insurance when financing more than 80 percent of the home's value.Full Answer >
A loan agreement is a document that binds a borrower to a lender, whereby the borrower accepts to pay back the money in compliance with stated terms. The document is a compilation of various promises made by the involved parties. The agreement usually protects the lender, as it is a legal document that expects the borrower to adhere to the terms and conditions.Full Answer >