What Are the Different Kinds of Loans?

 
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Depending on what you are looking for funding for, there are all kinds of loans out there available to the general public (so long as they meet the criteria of the lender and then subsequently receive approval). As long as you do your homework and get everything well prepared ahead of time, you could be able to get the money you need. If you are unsure if there is a loan out there for you and your personal needs though, you happen to be in luck. The following is a list of many of the different kinds of loans out there.

Consumer Loans

Consumer loans are some of the most commonly available and used loans out there. Most of the time these kinds of loans come in the form of what is known as an installment loan, where instead of the entire amount of money that was borrowed being paid back all in one go, it is broken up into equal installments paid every month over a predetermined period of time.

There are many different kinds of installment loans available for different purposes, most of which being major purchases. Many times, your credit score and debt to income ratio determines what the interest rate and the amount of money qualified to borrow will be.

Personal Loans

Personal loans are fairly popular because they are some of the most versatile kinds of loans out there. Though other kinds of loans have to be used for a specific purpose, personal loans are flexible in their use. You can use them for things like day to day living expenses, credit building, vacations, debt consolidation, and any number of other things.

The term lengths for personal loans are usually less than 10 years, with the maximum amount of money you can borrow usually being capped at no more than $100,000.

Some of the most common forms of personal loans will include (but are not limited to):

  • Secured personal loans
  • Unsecured personal loans
  • Variable-rate loans
  • Fixed-rate loans
  • Co-sign loans
  • Debt consolidation loans
  • Personal line of credit
  • Payday loans
  • Pawnshop loans
  • Credit card cash advance

Mortgages

One of the most common forms of installment loans is a mortgage. These are used by consumers in order to make buying a home a lot easier than it would be otherwise. Houses usually cost much more than the average person makes each year.

The most common kind of mortgage is a 30-year fixed-rate mortgage. These are then paid back in monthly installments during the course of a 30-year period which is called amortization. There are also 15-20-year mortgages available, but they are not so common, and you usually end up having to pay back a higher amount each month.

Auto Loans

Another common form of installment loan is the auto loan. As you might have been able to already infer, auto loans are a kind of loan that you take out when you wish to buy yourself or someone else a car. Though they are not as expensive as houses, cars can typically get pretty expensive and require you to shell out quite a bit of money to get one.

An auto loan will usually range from 24-60 months, though some times they can go for as long as 72-84 months depending on the deal that you work out with the lender that you are seeking to borrow from.

Student Loans

For the collegebound scholar, they will more than likely need some help when it comes to paying for their tuition and other school related expenses. College unfortunately is expensive and as years go on is only becoming more so.

You can potentially get a scholarship or a grant, but if you do not qualify for any of those, then odds are you will end up turning to getting student loans from the federal government or some times private companies if they are faced with issues regarding caps on federal loans.

Undergrad students who currently still depend on their parents are allowed by the government to borrow up to $31,000 while they are still in school, as well as a limit of $23,000 for unsubsidized loans. Federal loans all have the same interest rate for each borrower.

Small Business Loans

When going to start a business, you will need capital in order to get your venture off of the ground. If you do not come from a wealthy background in any regard, then you will probably need a bit of help to do get the capital your small business will require.

In order to get a small business loan however, you generally need to show the bank (or whoever your lender may be) that you have a credit score of at least 500-600 and that you have a solid business plan for getting your venture off the ground and raking in the dough.

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DISCLOSURES

LoanMart may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. LoanMart does not offer or service student loans. California loans are made or arranged pursuant to a California Financing Law License. See State Disclosures for additional disclosures.

1Credit approval is subject to LoanMart’s credit criteria standards. Actual loan amount, term, and Annual Percentage Rate of the loan that a consumer qualifies for may vary by applicant. Minimum loan amounts vary by state. Consumers need to demonstrate ability to repay the loan.

2Based on consumers who received a loan from February 2002 to October 2018.

3Application processes could take five (5) minutes to complete. Upon completion, a conditional approval may be given pending review of documentation. Funding time is based on the time from final approval following receipt and review of all required documents and signing, prior to 5PM PST on a business day.

4To exercise the right to rescind, the consumer(s) must notify LoanMart in writing by midnight on the sixth calendar day from obtaining the loan. Within one business day from notice of rescission, the consumer(s) must return any monies received and fees paid on behalf of the consumer(s) by certified funds.

5LoanMart recommends and encourages customers to pay early and often and more in order to avoid additional finance charges.

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