Secured Loan Guide

People turn to the loan companies for numerous reasons. The need for some cash can arise at any point. This need provides a good opportunity to the loan companies. You can obtain a variety of loans depending on your needs.

The type of loan being discussed here is the secured loan. This is a loan that needs some kind of collateral as insurance to the lender, in the event that you cannot meet the repayments. The variant called the home equity Loan is secured on property and is solely for home owners and mortgage payers.

The number one advantage of a secured home loan is the interest rate, which is normally less than an unsecured loan. If you own your own home then it is probable that you will qualify for a secured loan. This type of loan has long been a very popular way of borrowing for home owners everywhere. While there are so many secured and unsecured loans on offer it can invariably be quite difficult to select the loan that is ideally suited to you and your circumstances.

Secured loans are now very popular owing to their flexibility. If you have a bad credit rating, a good use of this type of borrowing is that by consolidating your bad credit into a lower rate secured loan, you can help to repair your credit rating. This great tool called the internet is a great place to start your research into obtaining the correct secured loan for your needs.

You can also obtain a secured business loan to finance any of your business needs. One of these types of loans can be used to buy materials, purchase land, pay wages, building, or machine plant, etc. A business loan can be secured against your home as well as any commercial type of property. At the end of the day please make sure you shop around, as there are some good deals to be found.

Get a Secured Loan and Find Solutions in a Secure Manner

The secured loan is given to borrowers after they have given some sort of security to the lenders. This security can be in the form of their houses, factories and other intangible form of assets.

An individual who wants to take a secured loan is required to follow some rules and complete some requirements. These rules and requirements are simple and do not pose much of a problem.

Secured loans are given by banks and financial institutions. Many companies also provide secured loans now. Therefore, there are many choices for the borrower in the form of numerous banks, financial institutions and companies.

Before taking the loan, there is an extremely important step which needs to be taken by the borrowers. They need to find out one simple thing. This 'simple thing' is their eligibility for taking a secured loan.

The borrower has to be a citizen of UK and has to be at least eighteen years old. He also needs to have a permanent residence. The bank requires something in return for the money that it gives in the form of a secured loan. This is normally referred to as 'pledging' and is one of the primary requirements for taking a secured loan.

The basic documents that are required for taking a secured loan are also the normal ones which are generally required. The borrower needs to give an age proof, an identity proof and a copy of the relevant documents.

The UK loans sector has been one of the major examples of strength and fortitude. The current global situation is that of recession. Money is no longer a 'freely flowing entity' in most of the economies. However, the UK economy has been successful in keeping its lending sector relatively safe.

Hence, the borrower still has many banks and financial institutions who are giving secured loans. Entrepreneurs have also ventured into the business of secured loans. Company (loan based) is the basic medium for the borrowers. Therefore, companies of most of these entrepreneurs are also giving secured loans. This has increased the trust of the common man in the British economy.

Hence, a secured loan is still being applied for. The standard of living is quite high and the income being earned is also quite impressive. The credit rating of borrowers taking secured loans is normally very good. This has increased trust of the banks on them.

The Internet is one of the major source of information about a secured loan. There are many websites which give all the required information about secured loans. The borrower, therefore, needs to go to any of these websites in order to have a complete understanding about a secured loan.

These websites are normally the official websites of major banks and financial institutions. There are also websites of financial intermediaries giving information about secured loans.

There are also many innovative and useful applications present on most of these websites. One of them is the comparison tool. This is an application which is normally present on websites of the intermediaries.

The purpose of a comparison tool is to provide an outlook about the features of the secured loans being given. The parameters for comparison are normally the interest rate and the tenure for giving the borrowed money back.

Secured Loan Company - How to Choose the Best Company Online!

They are several secured loan companies to choose from in the UK but which one is the best for you and your personal needs? The answer is, you don't know until you compare loan plans with a broker. It's very true; many people take the first offer and go with it not realizing that a better offer is just round the corner or a click away.

When you search for a secured loan company online on Google or Yahoo and you have a look around and choose a listing to find the information your looking. You do not really know if that company your looking at can give you what you're looking for. Going to a company directly can be a good idea but comparing hundreds of different companies and loan plans at the same time is a much better option for you.

That's what a broker does for you; they take all your information then they contact all the major banks and other big lenders to find a appreciate rate of interest for you. They do a good job and they're not tied to a particular company or tied to the companies' rates.

They are around five good secured loans brokers in the UK, First Plus owned by Barkley's bank, closed down there are secured loan company because they only planned to in the market for a short while. They offered very good rates at the time for homeowners and good customer service. When you use a broker they know all the companies and that will save you a load of time and probably money. They are other companies just as good as First Plus and better.

Your personal circumstance will also reflect your loan terms and agreement, you may have some bad credit or other related risk factors to consider but nothing should stop you applying and being accepted for a secured homeowner loan. Why don't you...

Choosing the Right Secured Loan Company

Shopping for a loan isn't fun, and deciding which secured loan company is the best one for your financial needs can be even less fun. It's a necessary step in locating the right loan, however, and it doesn't need to be nearly as difficult or stressful as many people make it out to be.

In order to find the right secured loan company for your loan, you simply need to collect and compare loan quotes from the various lenders in your area and online so that you can find the loan offer that's better than the rest.

Okay, so there's a little bit more to the process of finding a good secured loan company than that... but not a whole lot more. Below you'll find tips on what to look for in a lender and in a loan, how to collect and compare loan offers from the different lenders that you find, and ways to maximize the value of your loan by minimizing the interest that you pay.

Where to Look for Lenders

Before you can find a secured loan company, you have to know where to look for them and what you're looking for. When looking for lenders, one of your first stops should be your local telephone directory.

From here, you can begin compiling a listing of the names, addresses, and phone numbers of the various banks, finance companies, and other lenders in your area that might be able to offer you the loan that you're wanting. Make a special note of any names that you recognize, especially if you recognize the name from good experiences that either you or someone that you know has had.

Once you've finished your list, you should take a little time to get online and search for additional lenders in your area that might not be listed in the directory as well as several lenders who operate solely online. These lenders can offer exceptional deals with sufficient collateral, and shouldn't be overlooked in your loan search.

Choosing Your Collateral and Loan Amount

After you've finished your listing, it's time to choose the collateral and loan amount that you're going to use when requesting a quote from each secured loan company. In general it's best to use a high-value collateral, such as the equity that you've built up in your home, as the higher the value of the collateral is the more likely a lender is to give you an exceptional interest rate or flexible loan terms.

The amount that you want to borrow should be enough to cover your expenses, but you'll want it to be less than the total value of your collateral. This shows potential lenders that they'll be able to get their money back no matter what, and makes them more willing to offer you a good deal regardless of your credit rating.

Collecting and Comparing Quotes

With your collateral and loan amount decided, it's time to begin visiting each secured loan company and bank on your list and requesting a rate quote.

Once you've received quotes from each lender in your area and the various online lenders that you were able to locate, take a little bit of time to read over the quotes and compare them to each other. This will help you to determine which lender has the best interest rates overall, and can show you which loan is really the right one for you to apply for.

How to Find the Best Secured Loan Company Online

There are many secured loan companies to choose from in the UK, but which is the best secured loan company? The actual answer is we don't know until we sit down and compare them against one another. This can be done by getting an insurance broker, to be honest most people we take up the first offer that I put in front of us, but with careful studying we can save thousands on pounds by just comparing secured loans.

When we search online using Google and Yahoo to search for a secured loan company, at this point you don't really know if the company you're looking for. You can always got the companies office but that very hard when you have so many companies to look at. That is basically what broker will do for you; they will take all the information for you and look for the best interest rate for your secured loan. As they are not tied to any particular company they will search for the best offer for you and not them.

First Plus are a good secured loan company in the UK who offer good service and excellent interest rates, there are many other good insurance brokers currently in the market in the UK.

Your personal finances will affect the amount of loan that you can take and your loan terms and conditions. As you may have some bad credit or other related risk factors that could affect your loan application. But generally secured home loans are easily to apply and be accepted.

Choosing a Cheap Secured Loan Company

In the current financial climate, it can be difficult to find a cheap secured loan. You have to trawl through the various loan companies, comparing prices, terms and interest rates.

If you have a poor credit rating, finding a secured loan is even more difficult, as many lenders will refuse to even consider you. Fortunately, there are still many options when you are looking for a quick loan.

Before applying to a company, you should consider your circumstances, to ensure you get the loan that is right for you.

Both secured and unsecured loans are available, so it is important to weigh up which of these options is most appropriate for your own financial situation. When applying for a loan, the borrower puts forward an asset (usually their home or car) as collateral. Unsecured loans do not have this collateral and are paid out based solely on the borrower's credit rating.

A poor credit rating doesn't need to hamper you: it simply means that it makes more sense for you to choose a cheap secured loan.

There are many reasons for taking out a quick secured loan, including:

o Home loans - whether for a mortgage or for home improvements.
o Holiday loans - to fund a dream family trip.
o Debt consolidation - to ensure your debts do not spiral out of control.

Debt consolidation can dramatically reduce monthly outgoings. This is why it has become one of the most popular reasons to apply for a cheap secured loan.

Many people speed up the process by going to loan comparison sites. Websites that compare companies can help ensure that you find the loan best suited to your requirements. Loan advisors will take many things into account, including:

o The loan amount you require.
o The term for repayments.
o Your employment status - many companies provide self-employed and self-certification loans.
o The purpose of the loan - secured loans for buy-to-let properties can be available.

Having access to many loan providers in one place can make it much easier to find a quick loan that meets all your needs. To help the application process go smoothly, you should make sure you have all the paperwork you need at hand. This includes:

o Proof of ID, including name, photograph and address.
o Recent utility bills.
o Bank statements from the last three months.
o Payslips or accounts references.

You can help ensure your loan is processed quickly by organising the necessary paperwork, as well as choosing a secured loan company that promises to meet your needs.

What Are Secured Loan Rates

Financial companies usually offer people two main types of loans namely unsecured and the secured loans. Secured loans mean that borrowers have to put collateral in order to get the loan. Unsecured loans on the other hand, don't need any collateral to be provided.

Because there are smaller risks associated with them, secured loans will usually have smaller interest rates. You can also get much bigger loans if they are of the secured variety.

In most cases the types of secured loans that can be taken by people are of the multipurpose type. You can use the money you borrow for any type of need you might have. While some people use the money to buy cars or houses, others use them to pay for holidays or weddings. In other cases, people use secured loans to help their business.

A lot of people use secured loans in the UK. To meet their needs, plenty of people take homeowner and personal loans. In most cases, people from UK use it to make home improvements, consolidate existing debts, paying for medical or education expenses and for buying different types of goods.

To understand the secured loan rate, you need to know a number of things. Even though you already get lower rates when taking secured loans, you should still try to find the cheapest rate available.

That's because the money you save by paying a lower secured loans rate can be put aside and used later or reinvested. The secured loan rate that someone can get will depend on a number of things.

The most important one is the credit history of that person. In countries like the US and the UK, credit history is very important when deciding on the interest loan rate of the borrower. If you want to obtain the best secured loan rate, then try to keep your credit history perfect.

PRINCIPLES OF BANK LENDING POLICIES

The main business of banking company is to grant loans and advances to traders


as well as commercial and industrial institutes. The most important use of banks money is lending. Yet, there are risks in lending. So the banks follow certain principles to minimize the risk:


1. SAFETY


Normally the banker uses the money of depositors in granting loans and advances. So first of all initially the banker while granting loans should think first of the safety of depositor’s money. The purpose behind the safety is to see the financial position of the borrower whether he can pay the debt as well as interest easily.


2. LIQUIDITY


It is a legal duty of a banker to pay on demand the total deposited money to the depositor. So the banker has to keep certain percent cash

of the total deposits on hand. Moreover the bank grants loan. It is also for the addition of short term or productive capital. Such type of lending is recovered on demand.


3. PROFITABILITY


Commercial banking is profit earning institutes. Nationalized banks are also not an exception. They should have planning of deposits in a profitability way pay more interest to the depositors and more salary to the employees. Moreover the banker can also incur business cost and can give more benefits to customer.


4. PURPOSE OF LOAN


Banks never lend or advance for any type of purpose. The banks grant loans and advances for the safety of its wealth, and certainty of recovery of loan and the bank lends only for productive purposes. For example, the bank gives such loan for the requirement for unproductive purposes.


5. PRINCIPLE OF DIVERSIFICATION OF RISKS


While lending loans or advances the banks normally keep such securities and assets as a supports so that lending may be safe and secured. Suppose, any particular state is hit by disasters but the bank shall get benefits from the lending to another states units. Thus, he effect on the entire business of banking is reduced.


OBJECTIVES OF THE STUDY


The following are the main objective of the studies.


1. To study the problem in financial crisis and money related query.


2. To evaluate banking is one of the most regulated businesses in the India.


3. To Analysis the role developing economy for the nation.


4. To study dynamic role in delivery and purchase of consumer durables.


Scope of the Study


All persons need money for personal and commercial purposes. Banks are the oldest lending institutions in Indian scenario. They are providing all facilities to all citizens for their own purposes by their terms. To survive in this modern market every bank implements so many new innovative ideas, strategies, and advanced technologies. For that they give each and every minute detail about their institution and projects to Public. They are providing ample facilities to satisfy their customers i.e. Net Banking, Mobile Banking, Door to Door facility, Instant facility, Investment facility, Demat facility, Credit Card facility, Loans and Advances, Account facility etc. And such banks get success to create their own image in public and corporate world. These banks always accept innovative notions in Indian banking scenario like Credit Cards, ATM machines, Risk Management etc. So, as a student business economics I take keen interest in Indian economy and for that banks are the main source of development.


So this must be the first choice for me to select this topic. At this stage every person must know about new innovation, technology of procedure new schemes and new ventures.


METHODOLGY


Theoretical study conducted on the basis of secondary data, collected from books, journal and annual reports.


2. BANK PROFILE:


Indian Bank


Name of the Branch : Karaikal. [0090]


Date of Opening : 1971


District/Port Open : Karaikal/Port Town.


Category/Size : Large.


Population : Urban.


Computerisation : CBS.


Name of the Branch Head : R.Muralitharan,(Senior Branch


Manager)


Staff Strength Officers : 06


Award Staff : 06


Sub Staff : 03


Productivity : Rs. 281.39 Lacs.


Branch Classification : Profit Centre.


Location of the Branch : No. 96-98 Bharathiyar Road,


Karaikal-609607


Competition in the area : Almost All Banks are functioning.


Potential Available : Situated in a Commercial Area with a number of shops around Scope for trade finance. Branch has to tap more trade finance.


Computerised : ATM/CBS.


Commercial Activity : Being a union territory, large commercial Industrial activities are on.

secured loans company (UBS Bank USA)

UBS Bank USA comprises a team of professionals, dedicated to serving the deposit and borrowing needs of affluent and high-net-worth investors.

Senior officers at the Bank, with a total of 174 years of experience, include:

• Raymond J. Dardano, Chief Executive Officer
• George F. Coburn, Chief Operating Officer
• Julie M. Schleck, Chief Financial Officer
• Steven Stewart, Chief Credit Officer
• Jan M. Bergeson, Community Reinvestment Officer
• Shane Harvey, Chief Investment Officer
• Richard Mumford, General Counsel
• Don Hill, Compliance Officer & BSA Officer
• Leeto Tlou, Bank Risk Officer

The Board of Directors of UBS Bank USA comprises the following members:

• Rosemary Berkery, Chairman, UBS Bank USA
• Raymond J. Dardano, Chief Executive Officer, UBS Bank USA
• D. Gerald Searfoss, Professor Emeritus of Accounting, University of Utah
• David R. Wilson, Retired, Executive Vice President, First Security Corporation
• Gary J. Myers, Partner, Lake Hill & Myers, Certified Public Accountants
• Karen F. Shepherd, Shepherd Investments

secured loans company (Merrill Lynch Bank USA)

Merrill Lynch Bank USA

Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, more than 18,000 ATMs and award-winning online banking with more than 25 million active users. Bank of America offers industry leading support to more than 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients in more than 150 countries and has relationships with 99 percent of the U.S. Fortune 500 companies and 83 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.

Following the combination with Merrill Lynch, Bank of America has become:

• The largest brokerage in the world, with more than 15,000 Financial Advisors and approximately $2.2 trillion in client assets
• A leading provider of global corporate and investment banking services, including commercial lending, global high-yield debt, global equity and global M&A
• A global leader in wealth management, private banking and retail brokerage
• Bank of America owns approximately 34% of the economic interest in BlackRock, an independent, publicly-traded investment management firm

secured business loans

Cheap Secured Business Loans Overview

A secured business loan, once approved by the lender, can go a long way in transforming your dreams into reality. The reason why these loans are referred to as "secured loan” is simply because your property is used as collateral or a guarantee to protect and safeguard the lender’s financial interests. The property used as collateral could be your home, vacation or rental home or even undeveloped land which you may own. If you owe money on the property you wish to collateralize for your secured business loan, the amount of equity or the amount of principle you have already paid toward the property will determine the amount of your secured business loan. The single most distinct advantage of securing your business loan with your personal property is that you will be able to borrow at a lower interest rate. A lower interest rate means lower monthly payments and less financial liability for your start-up business. Unsecured business loans are also available from our lenders but they carry a higher interest rate.

A Final Word about Cheap Secured Business Loans

Although we guarantee that you will receive a highly competitive rate of interest—a really cheap rate—when you apply for a secured business loan from one of our pre-approved lenders, you must understand that there will never be a compromise with quality and service. Our business loan managers will carefully assess the potential and viability of your business proposition, examine its USPs, work with you closely on a solid business plan and help you receive approval for your cheap secured loan. They will even ask you to tweak your value proposition if necessary so that you are as close to profitability as possible in a record amount of time. So why not complete our handy inquiry form and request more information about our various cheap secured loan for small, medium and large businesses. Let us join forces and transform your vision into actuality

secured personal loans

During the course of our hectic and stress-prone lives, there often comes a time when we need access to emergency funds beyond our current means. It is at this critical juncture that cheap secured personal loans emerge as a viable value proposition. Like an oxygen tank for a struggling scuba diver, personal loans serve as a life line to peace of mind and tranquility at a time of financial distress. Not to worry… cheap secured personal loans to the rescue!

To Secure or Not to Secure

When you find yourself suddenly strapped for cash, you have to first decide whether to go either for a secured or a non-secured personal loan. When applying for a secured personal loan, lenders expect you to designate a tangible asset such as your home, undeveloped land or even commercial real estate as collateral. On the other hand, unsecured personal loans require no collateral. You do not have to pledge anything to be able to borrow. Secured personal loans carry a lower rate of interest as opposed to unsecured personal loans because the loan principle or the amount you wish to borrow is guaranteed with a tangible asset. Apply for cheap secured personal loans only if you believe that you can pay the loan amount in full and on time. There is really no point in jeopardizing a precious necessity such as your home. Lending institutions including banks, credit unions and loan companies usually offer both bypes of personal loans.

Factors to Consider when Applying for Cheap Secured Personal Loans

When you need to instantly borrow funds to meet an emergency such as hospitalization expenses, automobile repairs, roof damage and other unavoidable circumstances caused either by Man or Nature, personal loans can serve as undisguised blessings. Here are a few tips to consider when applying for personal loans:

• Vote for secured personal loans that carry a reasonable penalty should you choose to repay before the stipulated loan period. Read the fine print carefully to ensure that you are not being charged hefty administrative and loan processing fees.
• Check to make sure that the loan repayment amount is within your monthly budget.
• If your lender offers payment breaks also known as deferred payments during the life of the secured personal loan, check to make sure that you aren’t being penalized to exercise this option.

The interest rate at which you will qualified for an inexpensive secured personal loan also known as the annual percentage rate or APR, is determined by factors such as your credit record, job stability, monthly income and repayment history. Even if your credit reputation is bruised due to bankruptcy or foreclosure, you can still qualify for a cheap secured personal loan.

Remember that the loan marketplace is a buyer’s market today and competition is keen. Leverage the opportunity by completing our handy Information Request Form which will take only one or two minutes of your time to apply. Our pre-screened lenders will send you detailed information about unsecured personal loans and quote exact prices. It might be a good idea to research an inexpensively priced secured or unsecured personal loan well in advance, before an emergency raises its ugly head. So complete the inquiry form today and submit it to us. As always, there is never any obligation and your personal information is closely guarded at all times. Request information today !

secured home loans

If you are planning to graduate from rented living to ownership living and have already selected your dream home to purchase, congratulations are indeed in order. There are a few things you should know about cheap secured home loans before you sign the dotted line. First of all, all home loans are secured. There is no such thing as an unsecured home loan because all home loans, also known as mortgages, are secured with your home. The house, condo or duplex you own is the collateral for the home loan. Second mortgages are also secured in the same way. Second mortgages carry a slightly higher rate of interest because the primary lender who has granted you the first mortgage has first rights to your property in the form of collateral.

Qualifying for Cheap secured Home Loans
Lending institutions such as banks, insurance companies, mortgage companies and investment trusts typically conduct a comprehensive risk analysis when they receive your application for a secured home loan. Factors that determine eligibility for cheap secured home loans include:
Credit rating and credit history
Monthly income potential
Job stability

If your credit history has been bruised due to bankruptcy or foreclosure, you are considered high risk and may have to pay a higher rate of interest. This is not to imply by any stretch of the imagination that you will not qualify for a cheap secured home loan . Bad credit in no way implies no credit. Lenders who process applications for cheap secured home loans need to ensure that their investments circulate actively in the marketplace. It is a borrower’s market due to the large number of lending institutions competing against each other to process papers for cheap secured home loans.

Legal Help and Cheap Secured Home Loans
The documentation process involved in securing a competitively priced first or second mortgage can be rather complex. You may have to read up to one hundred pages of complex legal jargon much of which may be unclear to you. We therefore recommend that you use the services of a real estate attorney or solicitor to work for you. Do not allow the lending institution to pay for his or her fee because the loyalties may shift.
We have a long list of highly reputable financial institutions which are standing by to work closely with you to grant you a cheap secured home loan . So please be sure to complete the online Information request Form for a price quote and more information about a borrower-friendly cheap secured home loan .

AVAILABILITY OF SECURED LOANS

Secured loans readily available through banks, mortgage companies, and other lending institutions because there is a guarantee from loss when the borrower has put his home, auto, or pay check on the line as security. Home or business lending is the largest and most popular of secured lending in our society. Virtually every American wants to own his or her own home, and many people buy property for a company as well. There are many secured loan options available for a prospective homeowner. If a military veteran is seeking to borrow, the Veterans Administration (VA) will help with a low interest mortgage. Federal Housing Authority (FHA) lending is available, and conventional lending, where a substantial down payment gets a borrower on track toward home ownership. Until it's paid for, the home is owned by the bank or mortgage company. Every buyer looks forward to the day the title is finally handed over to him/her when the note is paid in full.

It is possible to use the same security for more than one loan, as when a homebuyer or business owner gets a second mortgage on the property. Then the equity in the property is the security for the amount. These kinds of secured loans give homeowners the needed resources for consolidating other debts, and paying them off with a lower interest rate than each separate bill had required. Or perhaps the homeowner needs to add on or make revisions to the basic house plan with the equity option. A child needing tuition funds is another common reason for an equity secured loan. The only drawback with these secured loans is the possible loss of revenue if something were to happen so the borrower had to sell the house before the debts where cleared. Second mortgages have to be paid out of the funds from the house sale, reducing the amount realized from the sale.

When buying a car, and after agreeing to a price and terms, the bank or finance company holds the title to the automobile until the last payment is made on this secured loan, and that may be somewhere between one and five years. Although ownership remains with the financial institution until the purchase price is paid in full, this type of borrowing allows the buyer full use of the house or car while payments are being made. There are other items purchased under the contract such as home appliances, shop tools, or farm equipment. With all these secured loans, there is recourse if payments are not made -- there is a product that can be repossessed, so borrowers need to commit to paying back their debt.

what are secured loans

Secured loans are those loans that are protected by an asset or collateral of some sort. The item purchased, such as a home or a car, can be used as collateral, and a lien can be placed on such purchases. The finance company or bank will hold the deed or title until the loan has been paid in full, including interest and all applicable fees. Other items such as stocks, bonds, or personal property can be put up to secure a loan as well.

Secured loans are usually the best way to obtain large amounts of money quickly. A lender not likely to loan a large amount without more than your word that the money will be repaid. Putting your home or other property on the line is a fairly safe guarantee that you will do everything in your power to repay the loan.