What is a soft loan

Other People Are Reading


According to a document published by the Library of Congress, soft loans consist of funds that lenders issue with either no interest or an interest rate below the loan's actual cost.


Soft loans often fund developing nations. Some commercial ventures may also qualify for soft loans, and lenders issue soft loans as low as $300,000. Commercial developers, municipalities, financial institutions and even state entities may use soft loans to begin or complete projects, fund purchases or continue operations.


Lenders may place several restrictions on soft loans. According to Triumph Capital Group, a lender's soft loan conditions include a minimum of $300,000, defined and realistic exit and repayment strategies, collateral or cash equity and a maximum 70 percent loan to value ratio.



Please enable JavaScript to view the comments powered by Disqus.
  • Photo Credit form -3 image by Rog999 from Fotolia.com

More Like This

What Is a Hardship Loan?

What Is Needed to Obtain a Personal Loan From a Bank?

How Does a Private Student Loan Work?

You May Also Like

Private-money lenders, otherwise known as "hard-money lenders" according to Foreclosure University. Unlike a loan from the bank or from "soft money".

This is in contrast to soft money loans where the promissory note is given in exchange for money to buy the property.

What Is the Definition of a Soft Second Mortgage. municipalities, governments and some private enterprises may engage in soft loans to.

A purchase money loan, also known as a seller financed mortgage. What Is a Soft Money Loan? As an alternative to.

The Definition of Soft Money vs. Hard Money. What Is a Soft Money Loan? How to Make Money; ehow.com. About eHow;.

Some sellers will also agree to a seller's second on the purchase of a commercial property. A second mortgage is any.

What Are Hard & Soft Costs in Construction. Project Smart: Residential Construction Loan; American Association of Insurance Services: Soft Cost, Hard.

What Is a Purchase Money Second Mortgage Loan. What Is the Definition of a Soft Second Mortgage? The mortgage is split.


View Blog Post

Source: ehow.com

Category: Credit

Similar articles: