8 Different Types of Loans You Should Know

1. WELCOME

2. 8DifferentTypes of Loans You ShouldKnow

3. There are various types of loans available depending on the borrower's needs and circumstances.Herearesomecommontypesof loans:

4. Alineofcreditisatypeofloanthatallows borrowers to access funds up to a certain credit limit, similar to a credit card. However, unlike a credit card, lines of credit can be secured or unsecured and often have lower interest rates. The credit limit on a line of credit is the maximumamountthattheborrowercan borrow at any given time. This limit is based ontheborrower'screditworthinessandother factors,suchasincomeandassets. Linesofcredit

5. PAYDAYLOANS Payday loans are short-term, high- interestloansthatare typicallydueon the borrower's next payday. These loans are often used by people who needcashquicklyandcannotobtaina traditional loan due to poor credit or lackofcollateral. Paydaylenderstypicallydonotrequire acreditcheckorcollateral,butthey may require proof of income and a checkingaccount. Page06of15

6. Credit card loans are a type of loan that allows borrowers to borrow moneyagainsttheiravailablecredit limitontheircreditcard.Thistypeof loancanbeeithersecuredor unsecured, depending on the credit cardissuer. Credit card loans are typically unsecured and have a revolving line ofcredit,whichmeansthat borrowers can borrow money up to theircreditlimitandpayitbackover time. CREDITCARDLOANS

7. Studentloansareatypeofloandesigned to help students pay for their education expenses,suchastuition,textbooks,and livingexpenses.Theseloans are offeredby boththefederalgovernmentandprivate lenders. Federal Higher Education Loantypically have lower interest rates than private student loans. The interest rates for federal student loans are set by the government andarefixed,whileprivatestudentloan interest rates can vary depending on the lenderandtheborrower's creditworthiness. Studentloans

8. Apersonalloanisatypeofloanthatistypically used for personal, non-business purposes. It can be used to fund a wide range of expenses, includinghomerenovations,medicalbills,debt consolidation,orunexpectedexpenses. Personal loans are typically unsecured, which meansthatyoudon'tneedtoputup collateral (suchasahouseorcar)togetapproved. Instead, lenders will evaluate your credit history,income,andotherfactorstodetermine ifyouqualifyforaloan,andwhatinterestrate andloantermsyou'llreceive. Personalloans

9. Business loanare a type of loan designed to help businesses finance their operations or make investments in their growth. Business loans can be secured or unsecured, and can be providedbybanks,credit unions, oralternative lenders. Business lenders typically require the borrower to have a strong credit score, a business plan, and financial statements showing the business'srevenue,expenses,andcashflow. Businessloans

10. Commercial Vehicle Loan are a type of loan usedtopurchaseaneworusedvehicle.The borroweragreestopaybacktheloanamount, plusinterest,overaperiodoftime.Autoloans aretypicallyprovidedbybanks,creditunions, orcardealerships. Commercial Vehicle Loancan have varying repayment periods, typically ranging from 24 to72months.Longerloantermscanresultin lower monthly payments, but may also result inpayingmoreinterestoverthelifeofthe loan. CommercialVehicleLoan

11. Amortgageloanisatypeofloan used to finance the purchase of a home or real estate property. The loan is secured by the property itself,whichmeansthatifthe borrowerfailstomakepayments, the lender can foreclose on the property. Mortgage lenders typically require adownpaymentofatleast3-20% ofthehome'spurchaseprice.The size of the down payment can affect the interest rate and the termsofthe loan. MortgagesLoan

12. THANKSFOR WATCHING DONTFORGETTOLIKETHEVIDEO SHARETHISTOYOURFRIENDS