Thursday, May 7, 2009

consumer and commercial loans

consumer loans are loans obtained by individuals for intermediate-term purchases such as car purchases, as well as merchandise bought with credit card. Commercial loans are essentially credit lines issued to businesses. there is a less active secondary market for consumer and commercial loans, making them the least liquid of all capital market instruments. However, there has been a growing movement to securitize (convert to marketable securities) some consumer debt.
Automobile loans constituted the largest component of consumer credit, followed closely by revolving credit, which , which includes personal bank lines of credit issued by credit card companies.

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