There are many articles on the web that would explain you the purpose and need of loans. Every individual or business firm has a different goal and need for a loan. It is natural to feel confused to understand what is the best loan and which option to select. There are different kinds of options, available for the loans such as; payday loans, loan sharks, bank loans, Etc..
Below are some of the types of loans for you to choose from:
1. Personal Loans:
Personal loans are usually offered by banks and as the name suggests, these could be taken with any personal motive such as marriage, honeymoon, engagement, travel, festival, hospitalization,Etc..The only disadvantage of such loans is that they charge a high amount of rate of interest and the majority of the banks have the deadline of two years for the repayment. These loans are the best option for individuals,who are sure that they would be in a position to repay the loan amount within a couple of years.
2. Credit Cards:
Though these are named as credit cards, in practical view, the credit companies issue some credit to the customers, which can be repaid in an agreed period of time, within months. Credit cards have become the most common forms of transaction option, by businesses and also by the individuals. Getting a credit card is the simplest and easiest way to obtain. Similar to loan sharks, the process is quite simple, as you may just register yourself on the website and wait for the delivery of the card.
3. Home Loans:
This comes after credit card. Buying a house has become a dream now, and the real estate a big business. The majority of the people cannot afford to buy a house without a home loan. People either prefer the option to take home loan from the banks or from the loan shark.One of the reasons why people are attracted towards these loans is because of the attractive rates of interest. On the other hand, the terms of these loans are quite comfortable ranging from a period of 15-20 years. From the disadvantage point of view, home loans, could be stressful if only one family member is earning and the rest is either young or dependant.
4. Cash Advances:
Cash advances are one of the benefits provided by the credit card companies, by offering certain short term advances or loans. Since, these are issued by the credit card companies; one can easily take the benefit of using them. However, they have their own demerits:
- You cannot enjoy the benefit of tax saving as the cash advances are not tax deductible.
- These have limitations as per the amount and thus,are not suitablefor large transaction.
- The rate of interest and fees applicable can be relatively very high, compared to other modes of loans.
In case you would need to know more about the other types of loans, such as payday loans or loan shark, feel free to explore the internet or simply walkinto your nearest finance store to know the details.
Below are some of the types of loans for you to choose from:
1. Personal Loans:
Personal loans are usually offered by banks and as the name suggests, these could be taken with any personal motive such as marriage, honeymoon, engagement, travel, festival, hospitalization,Etc..The only disadvantage of such loans is that they charge a high amount of rate of interest and the majority of the banks have the deadline of two years for the repayment. These loans are the best option for individuals,who are sure that they would be in a position to repay the loan amount within a couple of years.
2. Credit Cards:
Though these are named as credit cards, in practical view, the credit companies issue some credit to the customers, which can be repaid in an agreed period of time, within months. Credit cards have become the most common forms of transaction option, by businesses and also by the individuals. Getting a credit card is the simplest and easiest way to obtain. Similar to loan sharks, the process is quite simple, as you may just register yourself on the website and wait for the delivery of the card.
3. Home Loans:
This comes after credit card. Buying a house has become a dream now, and the real estate a big business. The majority of the people cannot afford to buy a house without a home loan. People either prefer the option to take home loan from the banks or from the loan shark.One of the reasons why people are attracted towards these loans is because of the attractive rates of interest. On the other hand, the terms of these loans are quite comfortable ranging from a period of 15-20 years. From the disadvantage point of view, home loans, could be stressful if only one family member is earning and the rest is either young or dependant.
4. Cash Advances:
Cash advances are one of the benefits provided by the credit card companies, by offering certain short term advances or loans. Since, these are issued by the credit card companies; one can easily take the benefit of using them. However, they have their own demerits:
- You cannot enjoy the benefit of tax saving as the cash advances are not tax deductible.
- These have limitations as per the amount and thus,are not suitablefor large transaction.
- The rate of interest and fees applicable can be relatively very high, compared to other modes of loans.
In case you would need to know more about the other types of loans, such as payday loans or loan shark, feel free to explore the internet or simply walkinto your nearest finance store to know the details.