Various kinds Of Loans

by | Jul 13, 2020 | Finance | 0 comments

There are various kinds of loans which vary in many ways, like time period, interest rate etc.

Here we present you some of such loans;

  • Debt consolidation loans

It is also known as bill consolidation or the credit consolidation.

It simplify your finances. It pays all or many of your outstanding debts in particular credit card debt. Which in result means there less of the monthly payments and also low interest rates. It is considered to be a form of the personal loan or mortgage.

Debt consolidation is in two forms: one taking of loan, and second signing up for the debt management program which does not include the loan and is totally up to the customer to chose one among them.

 

  • Auto loans

Auto loans are for your property. Through auto loans you can afford the vehicle, but by not giving the installments you risk losing your vehicle. This loan is given by the bank as well as the dealer from whom you are buying, well taking loan from the dealer is much more convenient than taking it from bank, though dealer carry high interest rates as comparison to the bank. So, just make sure that your payments are on time and never get delayed, so by the end the vehicle lien will be released to the purchaser.

 

  • Loans for Veterans

Veterans and their families are getting the loans from Department of Veteran Affairs. Veteran affairs loan are the money savers. Anyone who has served in military branch or the National Guard branch is the one eligible for the loan. There are no down payment for buyers who meet the loan requirements. The interest rates for the veteran loans are around 0.25% which are lower than the other conventional loans.

 

  • Small business loans

These loans are given to entrepreneurs or to the entrepreneurs who are starting a business and trying to expand the business. Decrease in the personal debt is good for both company and an individual because little debt or no debt helps you to put more capital in the business and helps you give more energy to the business.

 

  • Payday loans

These loans are short term loans with higher interest rates. Government does not support the payday loans just because of high interest rates. You can also say that payday loans are unsecured cash advances for the small amount. Payday loans are taken by the customers who have no access or little access to the credit.

 

  • Borrowing for retirement and Life Insurance

Individuals who have retirement funds and life insurance can buy from their own account which means that you are borrowing from yourself only. If you are unable to pay these loans than it can lead to severe tax consequences.

 

  • Borrowing from family and friends

It is considered to be as the informal loan. People avoid taking such loans as it may affect the relationship for protecting it is good for both the parties to sign promissory note which is very simple and is good for both. Borrowing from them gives you the advantage where you can be flexible at the time of paying and also gives you the advantage of lower interest rates.

 

  • Cash advances

The cash advance is given against your credit card. Cash advances are a short term loan. In this you do not use the credit card for any of the service you are using but instead you go to the ATM or the bank and get the cash for it. Cash advances are not put under the report which basically mean that your will not get affected. It has the high fees and interest rates.

  • Home equity loans

If your house has an equity than the value of your house is lot more. These loans are considered to be best for the renovation of house, for paying off the student loan, medical bills and various other projects included.  The interest rates are lower in the home equity loans and also has a fixed interest rates

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