TYPES OF LOANS
Friday, May 28, 2010
, Posted by BEST LOAN at 3:48 AM
TYPES OF PERSONAL LOANS:
SECURED LOANS:
A secured personal loan is a loan in which you offer up some form of collateral as a guarantee. Wherein the loan involves the attachment of collateral-say,your property or any fixed/moveable asset_against the sum of money borrowed.You risk losing your homes should default on repayments. The advantages to a secured loan are almost always lower interest rates which mean lower monthly payments for you.
UNSECURED LOANS:
An unsecured loan is one that does not require collateral. Here the loan is not secured against the loan amount borrowed.but cosequently the lender would be charging a higher rate of interest, taking into account the high risk involved in lending the sum. Here, failiur to make regular payments would see the lender fall back on the credit agreement, and resort the legal claims to make good the loss incurred.
When you apply for loans ,you can expect the lender to conduct a credit worthiness check on you before he actually gives you the loan. Usually, failure to be granted the loan would be on account of previous records of defaults in payments , accumulate mortage arrwars, cancellations of your credit card and rejection of application for credit. Should you receive the loan however, it would be sensible to opt for a payment protection policy that could cover your loan payments in full, and ensure peace of mind. The main disadvantage is the amount of interest you will pay. Since the lender requires no collateral, he charges higher interest rates to make up for it.
Some types of loans are as :
Short term personal loans
Military personal loans
Secured personal loans
Fast cash personal loans
Home loans
Auto loans
Payday loans
Study loans
No credit personal loans
Secured personal loans
Military personal loans
Second chance personal loans
Christian lending personal loans.
These all are available for one to five years.
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