Loans are the most common options individuals opt for in order to have substantial money easily. However, not everyone is granted a loan. Apart from that, there are also numerous loans to choose from such as business loans and even personal loans. As of now, personal loans are the most common loans individuals opt for. However, there are also different types of personal loans. Listed below are some of the following.
This is the most common personal loan. This can be used for financing homes, cars or any personal items you want. When it comes to paying, individuals need to repay it along with interest at regular intervals over a set period.
Payday loans are the most expensive type of loans. This is possible since payday loans have high interest rates and excessive fees. Therefore, opting for this loan is applicable for emergencies only.
Secured loans are one of the most preferred options of banking institutions since borrowers need to give collateral. In this way, banking institutions have the assurance that the borrower will pay the loan. In case that the borrower cannot pay the loan, banking institutions can take the collateral.
A single payment loan is used for short term, temporary financing and is repaid with interest in one lump sum at the end of the term.
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