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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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Article Source: http://EzineArticles.com/?expert=Sara_Dowling
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