What are the most popular loan types

April 18, 2011 - PRLog -- With sky rocketing prices of everything, people are striving hard to meet their daily needs and requirements. Their pay slips do not seem enough to meet daily life expenses. Therefore in the situations like this, the only thing you can do is to borrow loans. It’s almost implausible to even imagine a life without the opportunity to avail loans. As these loans are the only possible way we can bridge the wide gap between our needs and our pay checks.

A number of loan types offering different deals are available according to your needs. Some of these loan types are described below to help you know what different types you can avail in case of need.

1. Unsecured Personal Loans
Personal loans are the most common of all types. These loans are used for various purposes like a leisure time for your family or to buy luxury items, and sometimes also a heavy asset such as a car. These types of loans basically can be divided into two main categories; secured loans and unsecured loans. Secured loans are the loans where you need to place something as collateral. Normally, the security asset you keep is your home or any other property that is worth enough of the loan borrowed. You can borrow a large sum in these types of loans and usually the lender also feels safe since he has your property, in case you find yourself unable to repay the loan. Moreover, the repayment period is also flexible in these loans. In the unsecured loans, the amount you borrow is very less as opposed to the former type since you don’t have to give your property as the security of the money you borrow. Furthermore, you also need to repay this amount relatively early.

2. Home Loans (http://www.yourloan.ca/home-loans--credit/)
Home loans or mortgage loans as they are commonly referred to are loans which you borrow from banks or any other financial institution to buy a home. However, you cannot get the amount transferred to yourself directly, because the bank or that lending institution transfers the money directly to the seller.

3. Auto Loans
These types of loans, as the name suggests help you buy an automobile. There are different terms and policies of various auto/car loans, so make sure you read the fine print and understand car loan policies carefully, before you opt to go through auto loans.

4. Consolidate Loans (http://www.yourloan.ca/consolidate-loans--credit/)
These loans help you pay off all your scattered outstanding credits and debts, through one single lump sum. This is a great option because in this way you are only left with one lending company to worry about and hence can find a way to repay this. Usually, debt consolidation companies help customers with a consolidation loan.

Apart from these main categories there are student loans, fast personal loans, and overdraft loans etc, which can help you in different situations. But before you dive in the sea for a loan, be certain you know all about the deal you are making. A loan can make you groan if you are not too careful about your choices prior to making a deal.

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