There have always been times when you would have to seek loans and there would be options where you could avail them right from private financers, friends and relatives you could go to financial institutions such as banks and avail the loan you want. There are times when your monthly salary will not allow you go ahead get some of the things that you would want to buy and availing a loan would be the best option. When you ar3e availing the loan, you should make sure that you avail it from a trusted source and if you are availing it from the bank, they check out whether you have the capacity to pay it back along with the interest that would be charged and if the repayment is delayed then the penalty too is imposed on it.
There are different kinds of loans that you can seek
- Personal loans
- Credit card loans
- Home loans
- Car loans
- Education loans
- Loans against insurance schemes
- Loans against fixed deposit
- Loan against mutual funds and shares
There are several others such gold loans or pay day loans etc.
Most of the loans need you to produce the following to acquire the following
- Proof of identity, assets, income, address etc.
- Other documents
Whether the loan is sanctioned or not can be known in a couple of days after you have filled and submitted the loan approval form. Depending on the tenure and rate of interest of the loan, you can decide which loan will suite your needs best. It is seen students who aren’t able to afford fees for h9gher education go for the student loan option. The student loan also has two categories such as the federal student loans and private student loans. It must be noted that federal student loans are have lower rate of interest and borrowing is easier.
You could seek loans on your mortgages. This helps people who don’t have the whole amount to pay when they are buying homes. The mortgage loan is tied to your home, there are chances of foreclosure in this kind of loan when you fall behind on your payments hence you will have to carefully choose this loan and see if you could make the timely payments. But one thing that draws people to this loan is the lowest interest rates that it offers compared to the other loans that financial institutions provide.
When you want to buy a vehicle either two or four-wheeler you can avail the auto loan. The loan payment may be distributed in manner which allow you to pay it off easily over a period of time. The bank and the dealership can make the distribution and people have found out that the dealership is easier to pay off and convenient. But the downside is of paying more interest rates. There are also people who seek personal loans which are taken for a specific purpose like buying TV or any other appliances inn the house.
There is also a loan for veterans. There are also other loans such as small business loans which helps people who want to set up small businesses and they are figuring out to how to raise capital or buying raw material or money for the machines or other equipment for the product to service to be delivered to the customer. The pay day loans are loans got to fill in the gap between the monthly pay of one month to the other. The rate of interest is rather high, and it is a loan which is regularly taken by people who find it hard to survive only on their salary. These loans are discouraged to be taken in lieu of the high interest rates and costs they pose on the person taking them.
When you have saved up for your retirement some funds and you would like to avail loans on the that amount there is an option of doing so. Since you are borrowing on the amount that you own there would little less stress when you are paying back. But when you fail to repay the loan then you may fall into a dire trap of heavy-income tax possibilities. You can also apply for consolidated loans which help to pay of two or more loans off together and there aren’t specific loans clauses in this form of loan. Hear many loans can be paired together as per the rules of the bank and paid off together.
Deil D Pecci is a writer and blogger based in Chicago who covers topics on personal finance and entrepreneurship. Deil D Pecci has made Chicago her home along with his wife and children.