Discover the main types of loans and which one suits you
Having financial education helps us make better decisions when making certain contracts, and also when we have to plan for the future. That is why we are going to review the main types of loans that currently exist.
These loans are characterized by being designed to deal with the purchase of a home. In this case the loan is associated with a mortgage guarantee, which usually refers to the property that is to be acquired.
Although the contracts can present their particularities, normally in case of default the lender has the right to keep the house.
Immediate response loans
These are small consumer loans in which urgency is its most outstanding feature. The consumer does not have to present virtually papers, and in a matter of minutes he can obtain a response to the acceptance or rejection of the request.
The advantages of these loans are evident, since they are especially useful in those cases in which there is some kind of economic improvisation and there are no savings to meet them. They are also an ideal option to pamper yourself. We have a good example of them in Moneyman and their quick credits.
Loans to make reforms
In the case of these loans, in order to receive the money the lender can request that an invoice from the construction company be submitted. This is because the lender understands that making a reform will revalue the property, so the client will be more solvent than it was before.
If the client does not pay, he will have to pay interest for late payment. And although in principle these loans do not have to be linked to a patrimonial guarantee of the client, the truth is that ultimately everything will depend on what has been negotiated.
Loans to buy a car
As the name implies, money has to be used to finance the purchase of a vehicle, which can be both new and used. In general, it is enough to do a little research to find a loan of this type in a bank, and with a lower interest than the one offered by the concessionaire.
It is usually customary to use the purchased car as collateral for the loan, which is why the default can lead to losing the car.
Loans for studies
Given that studies are considered to be productive and that, with a high probability, they will provide a higher income to the student in the future, there are lenders who are willing to give loans for it and with very low interest.
In the United Kingdom and the United States they are very common loans, less so in the case of Spain, although here its popularity is growing. The student would have to pay back the loan after finishing the studies with a somewhat higher salary that he will get thanks to the training he has received.