Posts Tagged ‘Consumer loans’
Although generally differentiate only between personal loans and mortgages, often also distinguished the following types of loans:
Consumer loans
These types of loans are often used to finance consumer goods such as durability, a car, motorcycle, furniture, appliances, etc., plus an amount not very high.
Personal Loans
This kind of loan is generally used to finance specific needs at any given time and a small amount. Is very similar to consumer lending but in this case are used to pay for travel, wedding, etc. .. that is, intangible or perishable.
Student loans
These types of loans are more widely used in countries like the U.S., the UK and other European states. In Spain are being increasingly used, among other factors, because the financial institutions improve and expand their offerings year after year. These are loans designed for students to finance college tuition, graduate study or stay abroad. The costs are generally a bit cheaper than personal loans.
Mortgage loans
The mortgage loan is characterized in that, apart from the personal guarantee is offered as security for a ‘collateral’ consisting of the mortgage of immovable property. Failure to repay the loan the bank would become the owner of the house.
Consumer loans are those loans that are less important, are those that cover certain basic needs and which do not involve numbers too high compared with other types of loans such as mortgage.
Most people who apply for consumer credit is to pay for small expenses, the amount of these credits is always fixed and must be returned within agreed. Consumer credit in most cases are used to:
• Buy Electronics
• Buying Car
• Travel
• Payment Study
As consumer loans are loans of a little money, financial institutions tend not to very high limits. These periods vary from 5 to 8 years in extreme cases. The guarantees for such loans are personal. Given that the loan is not very high. Among the paperwork must be only:
• General documentation
• Payroll
• Income
• Expenses
In consumer credit as collateral must always be a guarantee which will be responsible for the debt if the holder fails to comply with credit. The interest rate on credit cost is variable not only in case of default may change the interest rate premium.