金融英语 chapter 6.pptVIP

Part Six Loans Fundamental Issues: Ⅰ.Definition and Categories of Loans Ⅱ.Credit Process (P210) Ⅲ.Post-Disbursement Management (P231). I. Definition and Categories of Loans 1. Defination A loan is a sum of money advanced to a borrower, to be paid at a later date, usually with interest. A loan may be payable on demand (a demand loan), in equal monthly installments (an installment loan), or it may be good until further notice or due at maturity (a time loan). As for the mortgage, the bank is given the title to the house until the mortgage is paid off in full. 2. Categories of Loans U.S.’s bank loans can be classified by (1) commercial and industrial loans; (2) inter-bank loans; (3) loan participations; (4) real estate loans. In China, we can divide loans according to different criteria: By Maturity short term loan: less than 1 year long term loan: more than 1 year The short term loan is used for working capital and the long term loan is used for fixed capital. B. By Interest Rate floating rate loans (eg. LIBOR). fixed rate loans. C. By Number of Lenders bilateral loans, syndicated loans. D. By Type of Borrowers corporate and institutional loans (CI loans), personal loans. E. By Nature of Common Usages working capital loans, fixed asset loans. F. By Nature of Particular Usages real estate development loans, mortgage loans, agriculture loans, education loans, etc.. G. Other Categories secured loans unsecured loans, redeemable loans irredeemable loans, interest free loans interest bearing loans, commercial loans government backed loan. 3. Introduction of Major Loan Categories A. Working Capital and Fixed Asset Loans Temporary working capital loan, Short-term working capital loan, Mid-term working capital loan. Revolving liquidity loan, Liquidity loan with ins