BANKING / Bank Loans

loan officer

A bank official who will oversee the approval or denial of a loan.

loan application

A form making the request for a stated amount of money, filled out prior to meeting with a loan officer.

credit history

A year-long record of how well a person pays her bills and shows her financial responsibility

pre-qualification interview

An initial meeting to determine the ability of repayment of a loan; checking the credit history and financial stability of the loan applicant.

asset

Any property, such as land or stock, that may cover a person's liabilities.

educational loan

Borrowing money from the bank for college tuition or other higher education expenses.

servicing fee

Charges such as loan fees and the interest the customer pays on the loan.

collateral

Something given to guarantee repayment of a loan.

overextending

Stretching one's credit beyond the financial guidelines.

A-type credit

Strong credit history that gives the bank good reason to approve the loan.

processing a loan

The job of putting loan applications into official consideration.