Top most common types of loans that you people take out!Admin@ | May 25, 2018 | 0 | Finance
There are a lot of times when people need some financial aid from someone other than their family and friends. When someones needs some financial help, and they cannot get that help from their family or friends, they usually turn to banks. Now when it comes to taking out a loan from the bank, most people who have a bad credit history often get their loan applications rejected. This can be a major problem in getting your loan approved. Another point to notice is that most banks will charge you a very high interest percentage on any loan that you are taking out.
So, what is the alternative? Well, you can contact other loan lending organizations that will give you a loan even if you have a bad credit history. You just need to be earning a respectable wage in order to get a loan from them. You can also get an installment loan from these loan lending companies and these installments will be those that you can easily pay every month.
Following are some of the most common types of loans that people take out for a number of different needs.
Unsecured loans and secured loans:
Unsecured loans are the loans for which there is no collateral that the bank keeps in case the person who takes out the loan fails to make the payments on time. The secured loans are secured against some collateral and most of the times, this collateral is either your car, or your property Etc. The difference between both loans is that the unsecured loan has a lot more interest on it than the other type of loan. You should only get this type of loan when you are in need of a large amount of money.
Loan on behalf of your vehicle:
There are a lot of loan companies that will give you a loan based on the price of your vehicle. You take your vehicle to them, get an estimate amount on it. After that, the loan company will grant you the loan depending on how much worth in money your vehicle has. The vehicle can be of any type at all, it just needs to be registered under your name. You get to keep the car and drive it around as well. In case that you are unable to ay back the money, your car will be taken by the loan lenders.
The installment loans are categorized in the short term loans. They are getting more popular among people who need a small amount of cash in an emergency situation. You can decide on the payback time all on your own, whether you want to make the repayments every other week or once in a fortnight Etc. These are the loans that will give you the control to decide on how you pay back the money. Installment loans are perhaps one of the most sort after loans because they have a less interest rate s compared to the most payday loans offered by the banks or other loan companies.