Lainaa vary in type depending on a number of variables such as:
- What do you want to do with it
- How long do you intend to repay it for
- How soon do you need it, etc.
With this in mind, you want to ensure that you are applying for the right loan when the time comes. If you are not sure of the type of loan, you want a certain institution to give you, consult with the institutions customer relations personnel. The following are some types of loans offered by institutions.
- Student Loans
These are loans offered to students to help with their cost of higher education. They are normally of two types including private student loans and state student loans. The difference between the two is that state loansare typically offered with lower interest loans as compared to private ones and they have fewer borrowing requirements. They also have friendly repayment terms, which puts less stress and burden to the borrower.
Banks give out loans to consumers to purchase houses, which they cannot pay for immediately. The terms of a mortgage are that if you fall behind on the agreed repayments, you risk foreclosure no matter the amount you have already repaid. They are considered some of the loans with the lowest interest rates.
- Personal Loans
These are loans handed out for personal expenses. They are not given a specific purpose hence they can be used to do anything that the lender deems fit. People with outstanding loans can also apply for these loans without a problem. However, getting your hands on these loans widely depend on your credit history.
- Auto Loans
These are loans that are tied to vehicles. If you cannot afford a vehicle by paying for it upfront, this is the loan for you. However, just like mortgages, if you don’t make your repayments as agreed, you risk losing the car.
There are many different types of loans available in the market for your selection depending on your specific need.