| A Brief Look At Loans | | | | improvement loan is granted on the condition that you |
| "Innovative financial packaging" is how it is sometime | | | | give the lender a second rank mortgage on your |
| known. Essentially what this means is that financial | | | | home. As such, the loan amount can rarely exceed the |
| institutions look for more and more ways to lend to | | | | valuation price of your home - including the increased |
| their customers - after all, charging interest on a debt is | | | | value after the improvements have been made. Again, |
| the main way that they make their money. But, with | | | | home improvement loans usually need to be paid by |
| more and more loans now available, it can sometimes | | | | monthly installments; however, balloon (or bullet as |
| be difficult to know exactly which loan to apply for. | | | | they're also know), one-off, payments are also |
| The following explanations try to clear this issue up a | | | | sometimes accepted. |
| little for you: | | | | Education Loans |
| Personal Loan | | | | Education loans are where you borrow money to |
| Probably the mainstay of financial institutions is the | | | | further your studies. One big difference between an |
| personal loan. As the name suggests, personal loans | | | | education loan and any other type of loan is that most |
| are money borrowed from a financial institution for | | | | education loans, although given by a financial institution, |
| personal use. In nearly all cases, a personal loan is | | | | are underwritten by the government. Consequently, the |
| going to be unsecured, which means you'll likely be | | | | interest rate on education loans (also known as |
| paying a premium on interest. Once the personal loan | | | | "student loans") is usually very low. |
| is given, you repay it by making monthly repayments | | | | Holiday Loans |
| to the lender. In effect, this is the multi-purpose loan. | | | | These days it is even possible to go to your bank and |
| Auto Loans | | | | ask them to borrow money so that you can go away |
| Auto loans are where you borrow money from a | | | | on holiday! As you'll be using the money to go on |
| financial institution in order to buy a car or vehicle. In | | | | holiday, this type of loan is unsecured. Consequently, |
| most cases auto loans are done by the car dealer, but | | | | interest rates are high. Not really a recommended way |
| there is no reason why you cannot make | | | | of paying for your holiday, but nice to know it's out |
| arrangements with your bank before buying the car to | | | | there if you need it! |
| borrow the money from them. As with a personal loan, | | | | Debt Consolidation Loans |
| most auto loans need to be repaid by monthly | | | | Unfortunately debt consolidation loans are becoming |
| installments. Sometimes, although not always, the | | | | more and more popular these days. A debt |
| financial institution will secure your loan with the vehicle, | | | | consolidation loan is where you have too much debt |
| which means if you cannot repay the loan they'll | | | | on store cards and credit cards and you need to |
| repossess your car. One additional expense with an | | | | borrow money to pay these all off and consolidate |
| auto loan is that most lenders insist that you take out | | | | them into one big debt. The advantages of doing this |
| fully comprehensive insurance during the period that | | | | are two-fold: (i) hopefully you'll lower the borrowing |
| the auto loan is outstanding. | | | | interest rate; and (ii) you only have to deal with one |
| Home Improvement Loans | | | | creditor. |
| As the name suggests, home improvement loans are | | | | Having decided upon the type of loan you want, all you |
| where you ask a lender to lend you money so you | | | | need to do now is to ask your financial institution to |
| can improve your home. In most cases a home | | | | approve the loan - Good Luck! |