The loan is nothing but providing a payment as debt with some percentage of interest. There are three types of loans they are:
Secured Loans, Unsecured Loans and Demand Loans
Secured Loans: Generally it is a loan provided on pledging some asset as collateral (may be a property or a car) by the borrower. Subsidized loans are those which do not gain interest earlier to the beginning of payment. This type of loan is featured at many colleges. Unsubsidized loans gain interest only on the day of disposal. The mortgage loans are very common type of loans in the housing sector, the title of the house is held until the money is paid completely.
Unsecured Loans: These loans are monetary. They are availed from financial institutions covered by different guises or packages (marketing): Personal loans, credit card debt, bank overdrafts, corporate bonds, and credit facilities i.e. line of credit. The interest rates that are applicable to different forms of loans may vary based on the borrower and the lender. These loans may be / may not be law regulated.
Demand loans: These are loans of short term (basically not more than a period of 180 days). The repayment does not have any fixed date for repayment & carry a floating interest which varies based on prime rate. Demand loans might be secured or unsecured.
Cash Advance
This is a service that is offered by most charge card and credit card issuers. Cash advance allows cardholders to draw cash, either through ATM or over a bank’s counter or at other financial agencies, up to a limit. Cash advances generally acquire a fee although this is at times waived if account is in credit. When payment is made through credit card, the rate of interest is higher than that charged on store purchases. Card scheme rules say, a credit card holder showing a form of identification should be issued a cash advance at the counter of any bank which provides that type of a credit card; this can be done even if the PIN of the card holder cannot be given.
Bad Credit Loans
If there is necessity for money but you are worried about the poor credit record you have, don’t think much, and do apply for a bad credit loan. These loans are offered by only certain banks. The information regarding settlement options from which you can choose a suitable one. Bad credit loans give borrowers a chance to fix their credit scores. After getting the loan, the thing to be done is to maintain regularity in payments.
Personal Loans
Commonly personal loans include car loans, mortgage loans, credit cards, home equity lines of credit, installment loans & payday loans. Monthly payment of personal loans can be reduced by choosing long term payments, but the interest paid overall increases as well. Personal loans in the U.S for cars have an average term of about six months in 2009. The business loans are also termed personal loans in case of corporate bonds and commercial mortgages.
Loans may be of many types, but the talent to differentiate and avail them as per need and to your profit and welfare is yours.