Basic vanilla commercial loan is also known as term loans. The interest rates for this loan stays fixed, scheduled in quarterly and monthly repayment scheme that includes a number of maturity dates. $25,000 is the minimum amount of money that is available as loan and can go even greater.
This loan can be classified into two major categories:
(i) Intermediate-term loans
(ii) Long-term loans
Intermediate-term loans:
A loan which is running for less than three years is considered as Intermediate-term loans, the payment for these loans can be made in monthly installments.
Long-term loans:
These are the loans which are running for at least 3 years or more.
According to the President Mr. Barack Obama, Consumers applying for mortgages will automatically get a plain vanilla loan (a traditional 30-year fixed-rate mortgage) until and unless the consumer chooses other much riskier variety. This step has been taken by the president in order to protect the borrowers from the confusing and high-risk mortgage scheme that generally results in foreclosures.
Posted by
Ranabir Ghosh
on
Friday, July 10, 2009
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