Types of Consumer Loans
- Mortgages. …
- Credit cards: Used by consumers to finance everyday purchases.
- Auto loans: Used by consumers to finance the purchase of a vehicle.
- Student loans: Used by consumers to finance education.
- Personal loans: Used by consumers for personal purposes.
Regarding this, what is an example of a consumer loan?
A consumer loan is any loan or line of credit a consumer receives from a creditor. Common consumer loans are home mortgages, auto loans, credit cards, personal loans, student loans, home equity, and HELOC loans.
Moreover, what are the loan products?
- Home loan. Home loans are a secured mode of finance, that give you the funds to buy or build the home of your choice. …
- Loan against property (LAP) …
- Loans against insurance policies. …
- Gold loans. …
- Loans against mutual funds and shares. …
- Loans against fixed deposits. …
- Personal loan. …
- Short-term business loans.
Which type of loan is best?
Best for lower interest rates
Secured personal loans often come with lower interest rates than unsecured personal loans. That’s because the lender may consider a secured loan to be less risky — there’s an asset backing up your loan.
Which type of loan is cheapest?
To know
| Car Loan Lender | Interest Rate (in per annum) |
|---|---|
| ICICI Bank | 9.30% – 12.85% |
| HDFC Bank | 7.70% – 13.55% |
| Bank of India | 7.35% – 7.95% |
| IDBI Bank | 8.10% – 8.70% |
What are the 4 types of loans?
- Personal Loans: Most banks offer personal loans to their customers and the money can be used for any expense like paying a bill or purchasing a new television. …
- Credit Card Loans: …
- Home Loans: …
- Car Loans: …
- Two-Wheeler Loans: …
- Small Business Loans: …
- Payday Loans: …
- Cash Advances:
What is the most common consumer loan?
Personal loans are the most common type of loan because most banks and credit institutions offer them. These loans can be used for anything, whether you need money for personal use or you’d like to fund a business. Providing that you have a good credit score, you can qualify for a wide variety of personal loans.
Are consumer loans bad?
Interest rates can also be low, particularly if you have good credit, making personal loans a good way to consolidate and pay off credit card debt. Other good reasons to use personal loans include paying for emergency expenses or remodeling your home. However, personal loans are not a good idea for everyone.
What is the 5 C’s of credit?
The system weighs five characteristics of the borrower and conditions of the loan, attempting to estimate the chance of default and, consequently, the risk of a financial loss for the lender. The five Cs of credit are character, capacity, capital, collateral, and conditions.
What is the difference between business loan and consumer loan?
A consumer loan will often require a credit report, pay stubs or tax returns. With a business loan, credit reports for the business will be accessed. In addition, the business will be required to provide the last three years of financial statements.
How do I apply for a consumer loan?
Walk into a partner store, choose your gadget of choice, and pay by Credit Card or Debit Card or even opt for Consumer Loan and convert the amount you pay into EMIs, which you can pay over in pocket-friendly instalments over 12 to 36 months. You don’t have to check your eligibility or submit documents.
What are the 3 types of mortgages?
You can also sign up for a Bankrate account to crunch the numbers with recommended mortgage and refinance calculators.
- Conventional mortgages. A conventional mortgage is a home loan that’s not insured by the federal government. …
- Jumbo mortgages. …
- Government-insured mortgages. …
- Fixed-rate mortgages. …
- Adjustable-rate mortgages.
What type of loan is a mortgage?
Best Type Of Mortgage Loan
The most common type of mortgage is a conforming conventional loan. A conforming loan means that it meets the basic qualifications for purchase by mortgage investors Fannie Mae and Freddie Mac. Conforming loans have standardized criteria and lower interest rates than some other loan types.
What are the three main types of lending?
The three main types of lenders are mortgage brokers (sometimes called “mortgage bankers”), direct lenders (typically banks and credit unions), and secondary market lenders (which include Fannie Mae and Freddie Mac).