Need urgent cash? Know different types of personal loans

Need urgent cash? Know different types of personal loans
July 15 05:27 2018 Print This Article

Over the past 20 years, the number of loan products in the market has increased notably. This is due to the economic necessity, demands of the public as they seek to solve financial problems in several circumstances. This rise is witnessed in all types of loans – personal loan, education loan, business loan and even municipal loan. Here’s a list of some vital personal loans and guideline about their usage.

Signature Loans:

Signature loans, as the name suggests, includes a promissory signature to repay the loan under a definite period of time, that’s called “loan term”. This time can be from 6 months to 5 years as well. This loan mostly depends on the borrower’s credit and requires a lower degree of assets. But it’s not always the same. Sometimes the lending institution can ask for the borrower’s asset to be a good credit to show, place a lien, or to make sure that the borrower possesses a good amount of financial or physical asset to repay the loan. Signature loans generally come with lesser interests than other consumer loans.

Credit Card Loans:

Credit Card loans are quick and quite easily available to the common public as these don’t require a credit check. These loans carry a higher interest rate and extra fees for having access to the money. These fees depend on the sources used to access the fund. Bank tellers, ATM’s, check cashing facilities etc. advance the credit card cash, which is allowed and accepted by several entities. Credit Card loans are higher than Signature loans. Some states have usury laws to lessen the interest rate on credit cards. These loans have no “term loan” as Signature loans. The borrower possesses a line of credit and has the access to use it as long as the credit card has funds.

Wedding Loans:

Wedding loans are a new form of loan developed in the lending industry to help out people with the increasing costs of the wedding. As the weddings become very expensive, these require a personal loan or sometimes even a business loan for the family to meet the needs of a proper wedding. Wedding loans can be both unsecured (signature loans) or secured (using assets for collateral). This depends as per the needs to fulfill the increasing wedding expenses and all the related services and involved in a successful matrimony. The amount of cash needed and the financial status of the borrower decide the credit criteria and term.

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Melinda Woodward
Melinda Woodward

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