What kinds of loans can you get?

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<h1>What kinds of loans can you get?</h1><strong> Author: <a href='http://www.articleseen.com/profile_Joan Douglas.aspx'>Joan Douglas</a></strong><br /><p>A loan is borrowing money from a licensed institution or unlicensed private companies. You must go in for a loan from a licensed financial company, such as a bank, only and only if you have no other means of securing the money and if your situation allows you meet your monthly repayment without fail. Few of the loans available from a bank are: student loans (which the bank gives you the leeway of paying back after you finish your education and start working); car and home loans (where, normally, rules and regulation are the same across board); personal loans (could be for your home improvement or a much needed holiday). Borrowing money from a bank or financial institution is a simple but long drawn process. People are usually honest in stating the reason for a loan. Make sure you have all your documents in order and you are prepared to pay back at a later date with interest. Banks normally make you sign a contract after affirming your status, and checking if you can meet your monthly payments with interest. There are different types of loans available to you from a bank or financial institutions: <b><i>Secured or collateral loan: </i></b>In this loan, you need to pledge your home, stocks and bonds, car or jewelry to secure a loan. If, for whatever reason, you are unable to meet your monthly payment (with interest), remember that the lender has the full right to sell whatever you have pledged to regain what the lender has loaned to you. After the sale, the lender retains what is owed to the company and returns the rest to you. The mortgage loan too comes under this category, and you work out a loan modification plan with your lender if you are facing financial difficulties. <b><i>Unsecured loan: </i></b> Here, you do not pledge anything. The banks hand out loans to you only after clarifying that you do require one, with interest. The interest rates are varied, and you need to find out which bank or financial institution offers you the best rate. <b><i>Demand loan: </i></b> This is a short-term loan, and could be secured or unsecured. Here, the date is not fixed for repayment and, consequently, the interest rates are also higher. There is one more area a borrower could go to. A money-lender or a loan shark! They rarely have you sign any contracts, charge a huge interest rate and use violence if you are unable to meet your repayment. It is not advisable to go to them however desperate you may be.</p><strong>About the Author:</strong><br />Joan Douglas writes about <a rel="nofollow" href="http://www.keyrs.co.uk">equity release</a> and other mortgage solutions.<p> Article Source: <a href='http://www.articleseen.com/Article_What-kinds-of-loans-can-you-get_20642.aspx'> http://www.articleseen.com/Article_What kinds of loans can you get?_20642.aspx</a></p>

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Category : Finance : Finance