It is very important to know that there are different types of loans. Each type depends on what you intend to do with the money you borrow. Bridging loan, this is a loan that is used to fill in the gap the money you are in need of for a new property before the current one is sold. This type of loan is usually short term. This one is in most cases used by people in need of buying houses before their old one is sold. Car Loan, under this type of loan, there are two categories involved, that is, Hire Purchase and Manufacturer's schemes. For the case of Hire Purchase, the car will be considered hired up to the time you fully pay for it, that is when you become the legal owner of the car.
For the Manufacturer's scheme, the car manufacturer puts up an advert in that you get the car but it will only be fully yours when you complete payment. In case you default in paying, the manufacturer repossesses their vehicle. Business Loan, this kind of loan is meant for startup businesses or ongoing business for capital or loan stocking purposes. They are also known as Stock Based Loans. All types of businesses can secure a business loan, and by that I mean whether small, medium or large scale businesses. Cash Loan, these are mostly secured by employed personnel that find themselves in a wanting financial state. These loans are refundable on your upcoming payday, this is why to apply for a cash loan you must be in the employment sector and have a bank account with a chequebook.
Home Loan, this is a loan acquired on your home. Discover more; this loan is not restricted to a specific purpose hence it is put into any use of choice like improving your home, buying new property or a car or even taking your family to a classic holiday. Home Improvement Loan, this loan can be secured for the purpose of renovating your bathroom or upgrading your kitchen to a modernized design and also for landscaping your garden. You also have the advantage of using it in repaying other debts. Home Owner loans, this can only be availed to those that own a home. The home value presents as security for the loan. It has no specific purposes making the homeowner able to use the credit in a way he chooses to. Secured Personal Loans, this is a loan that one secures using his property as security. Secured loans apply in the case where a person needs to come up with a large amount of money.
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