indirect loan


Loan deal in which the actual lender may not be known to the borrower. For example, most automobile purchase loans are not financed by the car dealers (where the car buyers fill out and submit the loan applications) but by a third party. This party (usually a finance company, called the loan owner) is the one that approves the loan terms, receives the loan payments installments from the car buyers, and sues defaulting borrowers.

Use indirect loan in a sentence

He made an indirect loan and that was a really interesting thing to me and I was not known by the borrower.

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In a loan incident where a loan is offered to a borrower and the lender of the loan is not known is a type of loan which is known as indirect loan

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Instead of borrowing directly from their credit union, the naive couple purchased their new car with an indirect loan through the dealership, and ended up with higher interest rates and less favorable terms.

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