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Types
Of Borrowers
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Borrower is the one who
receives something on the promise to return it or its
equivalent or the individual who applies for a loan
and receives the proceeds of the loan.
Here are
some common types of borrowers:
Property
Developers: They require money to construct residential or commercial developments. Developers sell apartments, shops & office space to individual buyers. The finance has to be fully repaid upon sale of property.
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Owners:
They are the owners of existing developed property
& they require finance for other purposes. This can be raised against the property by mortgage or lease, in which borrower may or may not occupy the property. Interest has to be paid regularly and capital is repaid at the end of mortgage or lease term.
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Individuals:
They need money to purchase residential or commercial
areas. Finance is repaid in installments over long term.
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Firms:
They need funds to purchase a finished development
or purchase an undeveloped land and construct residential, commercial or industrial development
or renovate/redevelop an existing development.
Owners either occupy the property or let/lease it to a tenant. Finance is repaid in installments over long term.
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Government:
Government require finance for developments. Residential, commercial, industrial developments of government are either held by public sector organizations or sold to individual buyers. Public developments such as roads and bridges are usually owned by the government, and sometimes tolls are collected from users.
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