Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [lending]

51 questions
75
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11 answers

Parent asking for money after I moved out

My parents are divorced and my dad has to pay to my mom financial support for everyone in the family. Because I moved out, my dad removed part of this financial support that he gives my mom. She is now asking that I give her the money that my dad…
crvswb
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71
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11 answers

How does a bank make money on an interest free secured loan?

I was having a discussion about the ethics of charging interest on a loan, and I was of the position that allowing the charging of interest encourages more loans to be given, and thus contributes to economic growth and prosperity. Therefore it is a…
Luke
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36
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7 answers

How does a bank lend your money while you have constant access to it?

How do banks / fintechs lend your money while you have constant access to it, ie. can withdraw at any moment? I assume there is some kind of liquidation pool, but how exactly is that managed with limited risk?
Anonona
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34
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7 answers

Can I lend a small amount of my own money to a bank at the federal funds rate?

I have a dollar that I won't be needing tonight, and I hear that banks are in the market for short-term loans. In fact, the present Fed funds rate is higher than the interest rate on any savings account I can find. Is it possible for me to lend at…
Display Name
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20
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9 answers

What precautions should I take when lending money to a friend?

I'm thinking of helping out a friend by lending him some money (~ $10k). I totally trust him, but I still have a feeling that I should have a contract or something similar. Are there standard contracts out there for these kind of things? If not,…
znq
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12
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1 answer

Why would you risk bankruptcy if you lend more money than you own?

Difficult to summarize the question in just a few words, so let me elaborate here. I am currently reading the Financial Times Guide to Banking by Glen Arnold, section Money creation, and there is something I cannot wrap my head around. The section…
user1301428
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1 answer

What's the logic for the length of service (employment) criteria for mortgage applications?

On a mortgage application, what's the logic - and is there any evidence for it - regarding longer length of service being 'better' for an applicant? I can understand if you've only been in the job a week, sure. But having been at a company for 5…
user36305
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9
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3 answers

Is person-person lending/borrowing protected by law?

Suppose that individual A lends his money to individual B. In order for A to be protected, what does he need to do? Is his lending protected by law? (I would prefer to hear the general case, but if the case needs to be restricted, let us restrict…
Lendo
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8
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4 answers

First Mortgage - Finding a Lender

I have been looking for a home in the US, I am a first time buyer and was wondering if someone with more experience than me can recommend ways to find a good lender? I started off by talking to my personal bank and I am currently working on getting…
AnchovyLegend
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8
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1 answer

How to get back the money that you lent someone?

I lent a friend a few hundred dollars a couple of years ago. Initially, he agreed to pay me back in a few months, but it never happened. The only evidence that I have is my check slip and also a long facebook message logs in which he agrees to pay…
Ari
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8
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1 answer

US: tax on revenues from loans (I'm the lender) and other services?

I have some spare money and would sometimes loan it to strangers in need on the internet. Let's say that I loan $100 and get $150 back after 5 weeks. Only that $50 should count as my income right? And how can I explain that to the IRS, since it's…
No Name
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7
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1 answer

Any Canadian tax shelter for lending to friends or family?

I am considering helping friends or family out of credit card debt, which is costing them ~18% per year by giving them a loan at more like ~3% (kind of like consolidated credit/debt). Is there anyways to register that loan or "investment" within a…
Mike Saull
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5
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2 answers

Do US banks lend your money to foreign banks during the weekend while you cannot make withdrawals?

I was told by an economics teacher once that banks take advantage of the weekend being closed to deposit on hand cash in foreign banks, specifically Mexican and South American banks. The lending bank would then receive high interest rate for that…
Tim Santeford
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2 answers

Is it impossible to get a home loan with a poor credit history after a divorce?

I am a very recently divorced single mom. I own my small farm which we cannot live at due to my ex-husband's continued harassment. I have the farm for sale but so far all interested parties want/need me to carry a loan with 10-15k down. In the…
Anita Stickler
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4
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1 answer

Are unknown lenders safe to use?

I want to refinance my mortgage, so I went searching for rates and a typical page on BankRate looks like this: These rates are a good half a percent less than what's offered by the major banks, but I've never heard of any of these lenders and they…
Joshua Frank
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