| Although it may be a given for many people these | | | | situations as well and there is risk involved since you |
| days, it is still important to know something about loans | | | | are putting up your home as collateral. |
| when you are thinking about applying for one. In fact, | | | | The third major type of loan is the automotive loan. |
| most people already have one type of loan or another. | | | | This is a narrower category since it deals exclusively |
| There are many different kinds of loans offered by | | | | with the purchase of vehicles. Everyone needs a car |
| banks, credit unions, private lenders, and other financial | | | | or some other means of transportation in today's |
| institutions. Each loan may be subject to the specific | | | | world. More importantly, they need something that is |
| requirements of the institution offering it and many | | | | reliable and will get them where they need to go. |
| loans are actually tailored to the particular applicant. All | | | | Cars-even used cars-are expensive and most of us |
| of this aside, there are four major types of loans that | | | | do not have the money to go and buy one outright. |
| are used by consumers. Each type has a different | | | | Therefore, auto loans are required to purchase a |
| object or focus attached. | | | | vehicle. Automobile dealerships typically provide |
| The first major type of loan is the personal loan. These | | | | financing options for auto loans via participating lenders. |
| are the loans that you would obtain from a bank or | | | | Again, there will be requirements that you must meet |
| credit union as an individual. At the same time, there is | | | | like credit rating or income level to qualify for the loan. |
| some overlap between personal and small business | | | | Different lenders have different policies regarding auto |
| since the purposes of each may often coincide. For | | | | loans so you will have to investigate them individually to |
| example, you may need a personal loan to fund a | | | | find out if you are eligible. |
| new small business opportunity. A personal loan may | | | | The fourth major type or category of loan is the |
| simply be a loan that you receive in order to pay for a | | | | education or student loan. This category includes both |
| necessary expenditure like replacing a major appliance, | | | | students who have gone from high school to college |
| paying bills, or getting a vehicle. Personal loans are also | | | | or university as well as adult professionals who have |
| used to consolidate debt. | | | | chosen to pursue further educational opportunities to |
| A second type of loan is the home or mortgage loan. | | | | increase their marketability in their chosen profession. |
| This is the category of loans relating to new home | | | | Since education and training can have a direct effect |
| purchasing, but may also deal with using your existing | | | | upon financial success, many banks, credit unions, and |
| home mortgage as a form of collateral to get a loan | | | | government-sponsored financial aid programs are |
| for other purposes. Like other types of loans, these | | | | growing in numbers to provide opportunities for those |
| loans have specific requirements and qualifications | | | | seeking educational finance assistance. |
| organized by the lender, which must be met by loan | | | | These four types of loans are a part of our everyday |
| applicant. Home loans are long-term expenses. You | | | | lives. At some point, most of us will receive one or |
| need to keep this in mind and plan accordingly and | | | | more of these loans if we hope to have a car, a |
| take other expenses that will be included so you have | | | | house, an education, or take care of personal matters |
| a clear idea of your payments. Now a mortgage loan | | | | beyond our current financial ability to resolve. It can pay |
| may also include those who already have homes but | | | | to have a better understanding of these different loans |
| want to take a loan out on the mortgage or house, | | | | so we can make the best decisions when a loan |
| using this as collateral to secure the desired amount. | | | | becomes necessary. |
| There are specific requirements involved in these | | | | |