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An offset loan is a type of lending arrangement, usually for a mortgage, in which a borrower also maintains a savings account with the lender. Instead of receiving interest on the savings account, the interest payment due on the loan is calculated only on the net balance of the loan minus the savings account.
Offset mortgages are helpful because the interest rates on mortgages are higher than the interest rates of a savings account. For example, if one has a home loan of $600,000 at 5% per year and an offset account in which one has deposited $200,000, one would be charged interest only on the $400,000 ($600,000 − $200,000).
In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan. [1] [2] The collateral serves as a lender's protection against a borrower's default and so can be used to offset the loan if the borrower fails to pay the principal and interest satisfactorily under the terms of the lending ...
As the loan balance grows over time due to interest and fees, It could potentially consume all of your home's equity by the time the house is sold. This is an important consideration if you want ...
Types of secured loans. There are many types of secured loans. Five of the most common include: Mortgage: With a mortgage, you put your home or property up as collateral to buy that home.If you ...
The national debt of Pakistan (Urdu: قومی قرضہ جاتِ پاکستان), or simply Pakistani debt, is the total public debt, [1] or unpaid borrowed funds carried by the Government of Pakistan, which includes measurement as the face value of the currently outstanding treasury bills (T-bills) that have been issued by the federal government.
Term loan: With a term loan, businesses are given a lump sum to cover various business expenses, including payroll, inventory or the purchase of equipment or real estate. Loan amounts vary by the ...
This is a list of English-language words of Hindi and Urdu origin, two distinguished registers of the Hindustani language (Hindi-Urdu). Many of the Hindi and Urdu equivalents have originated from Sanskrit; see List of English words of Sanskrit origin.