When I first started out in the record business, and was struggling to get
by, my Aunt Joyce was kind enough to give me a small loan.
In my case, as maybe in yours, my aunt had heard through the
family grapevine that I needed a loan, and when I came knocking on
her front door, she was prepared with her offer. I was incredibly grateful,
took it very seriously, and paid her back—with generous interest—as
soon as I was able.
That loan kept the Virgin Records recording studio afloat. It gave
me the time and resources I needed to make my business a success. And
many years and...
Paying Down Budgetary Liabilities? As
discussed above, our forecast assumes that
special fund loans to the General Fund are paid
back consistent with recent repayment schedules
provided by the administration and that
$1.2 billion of such loans remain outstanding by
the end of 2017-18. The state could choose to pay
down these loans faster.
In implementing its program, NBD serves potential borrowers on site in the targeted area. The
methodology for implementing SME credit programs departs from the traditional lending structure
in Egypt both in terms of targeted types of borrowers and amounts involved. Upon simple and
thorough studies of potential and small borrowers, adequate uncollateralized loans with appropri-
ate repayment schedules are disbursed to clients to fulfil their credit needs. NBD has been chosen
as a model for the Middle East which relies on Microfinance best practice techniques.
Your education loan debt represents a serious financial
commitment that must be repaid. A default on any loan
engenders serious consequences, including possible
legal action against you by the lender or the government,
Law school graduate debt of $100,000 amounts to almost
$1,187 a month on a standard 10-year repayment plan.
Federal loans offer graduated and income-sensitive
repayment plans that lower monthly payment amounts
but increase the number of years of repayment.
Consistent with real-life credit-card and subprime mortgage
contracts but (we argue) inconsistent with natural specifications of rational time-consistent
theories, in the competitive equilibrium of our model firms offer seemingly cheap credit to be
repaid quickly, but introduce large penalties for falling behind this front-loaded repayment schedule.
The contracts are designed so that borrowers who underestimate their taste for immediate
gratification both pay the penalties and repay in an ex ante suboptimal back-loaded manner
more often than they predict or prefer.
Due to the nonredundancy
condition, the competitive-equilibrium contracts we derive exclude most options by assumption;
in particular, nonsophisticated borrowers’ only option to change the repayment schedule will be
to change it by a lot for a large fee. As is usually the case in models of nonlinear pricing, the same
outcomes can also be implemented by allowing other choices, but making them so expensive that
the borrower does not want to choose them.
Premium bond A bond that is selling for more than its par value.
Prepackaged bankruptcy A bankruptcy in which a debtor and its creditors pre-negotiate a plan or reorganization and then file it along with the bankruptcy petition. Prepayment speed Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities.
Prepayments Payments made in excess of scheduled mortgage principal repayments.