Loans Information

A Brief Look At Various Types of Loans Available


A Brief Look At Loans
"Innovative financial packaging" is how it is sometime known. Essentially what this means is that financial institutions look for more and more ways to lend to their customers - after all, charging interest on a debt is the main way that they make their money. But, with more and more loans now available, it can sometimes be difficult to know exactly which loan to apply for. The following explanations try to clear this issue up a little for you:
Personal Loan
Probably the mainstay of financial institutions is the personal loan. As the name suggests, personal loans are money borrowed from a financial institution for personal use. In nearly all cases, a personal loan is going to be unsecured, which means you'll likely be paying a premium on interest. Once the personal loan is given, you repay it by making monthly repayments to the lender. In effect, this is the multi-purpose loan.
Auto Loans
Auto loans are where you borrow money from a financial institution in order to buy a car or vehicle. In most cases auto loans are done by the car dealer, but there is no reason why you cannot make arrangements with your bank before buying the car to borrow the money from them. As with a personal loan, most auto loans need to be repaid by monthly installments. Sometimes, although not always, the financial institution will secure your loan with the vehicle, which means if you cannot repay the loan they'll repossess your car. One additional expense with an auto loan is that most lenders insist that you take out fully comprehensive insurance during the period that the auto loan is outstanding.
Home Improvement Loans
As the name suggests, home improvement loans are where you ask a lender to lend you money so you can improve your home. In most cases a home improvement loan is granted on the condition that you give the lender a second rank mortgage on your home. As such, the loan amount can rarely exceed the valuation price of your home - including the increased value after the improvements have been made. Again, home improvement loans usually need to be paid by monthly installments; however, balloon (or bullet as they're also know), one-off, payments are also sometimes accepted.
Education Loans
Education loans are where you borrow money to further your studies. One big difference between an education loan and any other type of loan is that most education loans, although given by a financial institution, are underwritten by the government. Consequently, the interest rate on education loans (also known as "student loans") is usually very low.
Holiday Loans
These days it is even possible to go to your bank and ask them to borrow money so that you can go away on holiday! As you'll be using the money to go on holiday, this type of loan is unsecured. Consequently, interest rates are high. Not really a recommended way of paying for your holiday, but nice to know it's out there if you need it!
Debt Consolidation Loans
Unfortunately debt consolidation loans are becoming more and more popular these days. A debt consolidation loan is where you have too much debt on store cards and credit cards and you need to borrow money to pay these all off and consolidate them into one big debt. The advantages of doing this are two-fold: (i) hopefully you'll lower the borrowing interest rate; and (ii) you only have to deal with one creditor.
Having decided upon the type of loan you want, all you need to do now is to ask your financial institution to approve the loan - Good Luck!

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Sara Dowling is the owner of Be-Healthy.net and Hosting-Spot.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


MORE RESOURCES:

Wall Street Journal Blogs

December 22 Is Deadline to Apply for SBA Economic Injury Disaster ...
MarketWatch - 18 hours ago
The deadline to file applications for Economic Injury Disaster Loans (EIDLs) is December 22, 2008. Small businesses and small agricultural cooperatives that ...
Small business loans dwindle The Tennessean
Loans available for September storm damage Columbia Missourian
Wells Fargo named top small-business lender in Texas Bizjournals.com
Marshall County Journal - Salt Lake Tribune
all 264 news articles


Aljazeera.net

IMF, Nordics pledge $4.6 billion loans to Iceland
The Associated Press - 1 hour ago
HELSINKI, Finland (AP) — Four Nordic countries and the International Monetary Fund on Thursday pledged a combined $4.6 billion (euro3.64 billion) in loans ...
Iceland welcomes loans from IMF, Nordics and Poland (Roundup) Monsters and Critics.com
IMF, Nordic Neighbors Agree Billion-Euro Loans for Iceland Deutsche Welle
led Iceland package to total $10.2 bln guardian.co.uk
MarketWatch - SmartBrief
all 670 news articles


Money-Market Rates Fall on Bets Rate Reductions to Accelerate
Bloomberg - 2 hours ago
The euro interbank offered rate, or Euribor, that banks say they charge each other for three-month loans fell four basis points to under 4.08 percent today, ...
Swiss National Bank cuts interest rate to 1 pct The Associated Press
Asian Money Costs Fall as Banks Pump In Cash to Spur Lending Bloomberg
Japan, Australia Money Rates Advance Amid Recession Concerns Bloomberg
all 85 news articles


Los Angeles Times

Hiccups appear in bank loans
Burnet Bulletin, TX - Nov 19, 2008
7, depositors have not seen a change in their banking, but loan customers are confronting, in some cases, major problems. Those hurting, in particular, ...
CORRECT: Modified mortgages often re-default MarketWatch
Loan Modifications For Banks Could Mask Future Losses CNNMoney.com
OUR VIEW: Mortgage relief grows Bristol Press
New York Times - The Associated Press
all 983 news articles


ABC News

Loans to Detroit
Salt Lake Tribune, United States - 12 hours ago
The debate in Congress over a bailout of GM, Ford and Chrysler comes down to this: Should the taxpayers throw $25 billion in bridge loans to Detroit, ...
Give Big Three the federal loans they need The Bay City Times - MLive.com
Is Bailout Possible Without UAW Concessions? ABC News
Capitol Hill Watch | Automaker Bankruptcies Would Require ... Kaiser network.org
New York Times - DetNews.com
all 826 news articles


Working to Thaw Credit Markets: Social Lending Site LendingClub ...
MarketWatch - 44 minutes ago
"Lending Club is leading the charge to deliver that alternative by providing a market where people can receive loans funded by other members--giving them a ...


New York Times

Breakingviews.com Commercial Loans Are Looking Risky
New York Times, United States - 12 hours ago
The acceleration of this collapse over the past couple of days is partly due to the widely publicized potential default of two loans that are held in many ...


FHA-Backed Loans: The New Subprime
BusinessWeek - 8 hours ago
Washington, meanwhile, has vastly expanded the availability of such taxpayer-backed loans as part of the emergency campaign to rescue the country's swooning ...
FHA lowers limits on loans Arizona Republic
FHA Relaxes Program Rules for Homeowners Washington Post
all 4 news articles


Calgary Herald

Ailing automakers plead for $25b in loans
Boston Globe, United States - Nov 18, 2008
The chief executives of Chrysler and Ford also pleaded for the loans, which would come on top of a $25 billion package approved in September to help the ...
Auto Execs Reset Bailout Pitch; Republicans to Rewrite CAFE for Loans Ward's Auto (subscription)
Big 3 fail to close deal on bailout Los Angeles Times
Republican Leader Presses Compromise as Auto Chiefs Renew Plea Bloomberg
MarketWatch - New York Times
all 1,571 news articles


The Associated Press

Loans to automakers make the only good deal for US
Detroit Free Press, United States - 23 hours ago
So consider this deal: For a loan of $25 billion, you could create an industry that would directly and indirectly create 13 million jobs, one out of every ...
Video: Automakers Testify As Hopes for Aid Falter AssociatedPress
Ford says could wait on US loans until 2009 Reuters
google news commentComment by Gary Chaison Prof. of Industrial Relations, Clark University
Trading Markets (press release)
all 832 news articles

Loans - Google News

home | site map
© 2008 RMB.ORG.UK