There are all sorts of loans available today from the simplest of promissory notes between family and friends to the more complex forms of lending like mortgages, car loans, and more. Some loans, such as small business loans, are available only to certain groups of people. Banks and credit unions will lend money for cars, homes, and education in the form of student loans. Other less common types of loans are payday loans and car title loans.
A mortgage loan is offered by traditional lending institutions like banks and credit unions to help people pay for homes that they cannot pay for upfront. In order to obtain a mortgage loan, people must go through a lengthy process to make sure they are a worthy borrower. The lender will examine a borrower’s credit history, employment history, assets, and more to determine whether or not to extend a loan. If a borrower fails to pay the mortgage, he or she risks foreclosure.
People can obtain loans from banks, credit unions, and even car dealerships to pay for automobiles that they cannot pay for upfront. These loans are usually smaller than a mortgage and feature interest rates higher than most mortgages. Borrowers who do not make their payments can face repossession of the vehicle.
Student loans are offered by traditional lenders as well as through various government programs. The federally-funded loan programs typically offer lower interest rates than those from a private lender. Students do not begin paying back the loans until after they have completed school.
Car Title Loans
Mortgages, car loans, and student loans are more conventional type loans that are familiar to many people. A car title loan is a little different. People in need of quick cash can do so by visiting a title loan company like Florida’s Embassy Loans. They fill out an application and Embassy Loans checks their identity, residency, and the title to their vehicle. Applicants must have a vehicle with a clear title. Since the car or truck is used as collateral, there is no need for credit or employment checks. These types of loans are processed in an hour and are a great way for those with less than stellar credit histories to obtain quick cash.
Small Business Loans
Small business loans are one type that is only available to a certain group of people. Business owners looking to start or expand a business can acquire a loan from the U.S. Small Business Administration. The SBA evaluates each application and has a variety of loan types that depend upon the needs of the individual businesses.