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!

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Sara Dowling is the owner of Be-Healthy.net and Hosting-Spot.com
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MORE RESOURCES:

WWJ

Automakers pledge to restructure in return for loans
MarketWatch - 4 hours ago
Chrysler joined the gloomy chorus, asking for $7 billion in bridge loans to keep the company from failing at some point in the first quarter. ...
GM seeks $18B in loans, says it needs $4B to survive year Detroit Free Press
GM Seeks $4 Billion to Survive ‘08, $18 Billion Total (Update2) Bloomberg
GM Makes Pitch For $18 Billion In Aid, Needs Cash Before Year's End CNNMoney.com
International Herald Tribune - Detroit Free Press
all 95 news articles


Executives Return to Congress to Plea for $25 Billion in Loans
Washington Post, United States - 16 hours ago
By Kendra Marr In its second attempt to persuade Congress to grant the US auto industry $25 billion in emergency loans, Chrysler plans to make the case that ...
Source of loan money in contention Detroit Free Press
Pelosi Says Bankruptcy by Automakers ‘Not an Option’ (Update2) Bloomberg
Automakers Detail How They'd Survive With Federal Help Investor's Business Daily (subscription)
Reuters - Automotive News
all 111 news articles


Telegraph.co.uk

GM says it needs $12 billion loans by late March
The Associated Press - 7 hours ago
WASHINGTON (AP) — General Motors says it needs $4 billion in government loans this month and a total of $12 billion by late March to keep operating. ...
GM asks for up to 18 billion in government loans AFP
General Motors seeks $12 bln in Government Loans - quick facts RTT News
General Motors outlines federal bridge loan request CanadianDriver
WXYZ - TMCnet
all 255 news articles


ABC News

Chrysler Asks For $7 Billion In Loans By End Of The Year
CNNMoney.com - 5 hours ago
The loan, coupled with its ongoing restructuring efforts, would keep Chrysler operating through March 31, 2009 . Chrysler also asked that the loans be ...
Ford makes plea for access to $9 billion in loans MarketWatch
Ford says CEO will work for $1 to get gov't loans KDRV
GM to slash workforce, brands in bid for 18 bn in loans Economic Times
Washington Times - The Associated Press
all 2,285 news articles


Fed Extends Three Emergency Loan Programs to April (Update2)
Bloomberg - 7 hours ago
2 (Bloomberg) -- The Federal Reserve extended the term of three emergency-loan programs to April 30 from January 30, aligning their expiration dates with ...
FACTBOX-The Fed's evolving liquidity toolkit Reuters
Fed Extends 3 Emergency Loan Programs New York Times Blogs
Fed extending liquidity measures Investment Executive
Reuters - Reuters
all 35 news articles


Los Angeles Business Journal

Investors Sue Countrywide Over Loan Modifications
New York Times, United States - Dec 1, 2008
The fund, Greenwich Financial Services, said it and other investors stood to lose money if Countrywide, now part of Bank of America, modified loans under a ...
Investors sue Countrywide to force loans purchase Reuters
Countrywide Sued by Fund Over $8.4 Billion Loan Deal (Update2) Bloomberg
A Tale of Two Loan Modifications, As Investors Sue Countrywide Housing Wire
Mortgageorb - Wall Street Journal
all 68 news articles


Anonymous Banker: Why Are SBA Loans Disappearing?
New York Times, United States - 13 hours ago
In recent months, I’ve seen a marked improvement in the supporting documentation banks are requiring when they review a loan, better processes to verify ...
SBA Offers Disaster Assistance To Maine Businesses Economically ... MarketWatch
SBA approves disaster loans for Mount Desert fire WBZ
Federal money may help recover fire damage MaineToday.com
all 14 news articles


Fitch: Update of Closed-End Fund Criteria for Leveraged Loans
MarketWatch - 6 hours ago
For the purpose of determining appropriate discount factors, performing loans are defined as loans which remain current on principal and interest payment ...


UPDATE: Nissan Sells $600 Million Bonds Backed By Auto Loans
CNNMoney.com - 4 hours ago
By Matthew Cowley NEW YORK -(Dow Jones)- The deafening silence in the market for bonds backed by consumer credit loans was interrupted Tuesday with a deal ...
Nissan Motor Sells $600 Million in Auto Loan Bonds (Update2) Bloomberg
all 6 news articles


Los Angeles Times

General Motors seeks $18 billion in loans from Congress
Los Angeles Times, CA - 3 hours ago
This morning Ford submitted a restructuring plan to Congress as part of a request for billions of dollars in federal loans. Chrysler is also expected to ...
Chrysler's viability plan calls for $7 billion emergency loan ... Motor Authority
Low-cost loans to Big Three an investment TheDay
Nov. auto sales sink to worst level since 1982 The Associated Press
Bloomberg - NewsReleaseWire.com (press release)
all 927 news articles

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