ComputerHunter.org

 

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
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~







Google News - Top Stories

CTV.ca

Officials Say Possible Mumbai Attack Planner Arrested Months Ago
Voice of America - 1 hour ago
By VOA News India is looking into the possibility that one of the planners of last week's deadly terrorist attacks in Mumbai has been in police custody for months.
India unsettled by warnings of airborne attack Los Angeles Times
Pakistani group under fire after India attacks The Associated Press
International Herald Tribune - BBC News - Press Trust of India - PRESS TV
all 5,533 news articles


ITV.com

Mugabe hints at Cabinet without opposition
CNN International - 2 hours ago
HARARE, Zimbabwe (CNN) -- President Robert Mugabe hinted he may form a Cabinet without the opposition and call for early elections in Zimbabwe to resolve the impasse over a stalled power-sharing deal.
Go Mugabe or fact arrest - Tutu BBC News
Rice: 'It's well past time' for Mugabe to leave The Associated Press
Reuters - AFP - International Herald Tribune - ABC Online
all 893 news articles


guardian.co.uk

Canadian leader provokes anger by closing Parliament
International Herald Tribune - 37 minutes ago
By Ian Austen OTTAWA: Canada's parliamentary opposition reacted with outrage after Prime Minister Stephen Harper shut down the Legislature until Jan. 26, seeking to forestall a no-confidence vote that he was sure to lose and that might have provoked a ...
Opposition vows to topple Canadian leader Harper Newsweek
Canada Political Crisis Suspends Fight Against the Economic One Bloomberg
Los Angeles Times - CNSNews.com - guardian.co.uk - Xinhua
all 2,198 news articles


BBC News

Paris thieves steal $102m jewels
BBC News - 1 hour ago
One of Paris's most prestigious jewellery shops has been robbed of at least 80m euros ($102m, £70m)) worth of jewels, police say.
Robbers in drag get euro80M in Paris jewelry theft The Associated Press
Diamond thieves pull off $100 million Paris heist AFP
Telegraph.co.uk - Women's Wear Daily - GulfNews - Reuters UK
all 149 news articles


Telegraph.co.uk

Thai king's illness sparks anxiety amid crisis
The Associated Press - 1 hour ago
BANGKOK, Thailand (AP) - Thailand's ailing king, a pillar of stability during his six decades on the throne, failed to attend celebrations marking his 81st birthday Friday as many Thais feared his fading from the scene could deepen the turmoil that has ...
Politics on hold as Thais pray for ailing king Reuters
Thais nervous over absence of ailing monarch International Herald Tribune
Hindu - Los Angeles Times - AFP - Inter Press Service
all 835 news articles

Google
 

Copyright © 2006 Computer Hunter - A Division of Arthur´s Job Base