Different Loans For Different Needs

By Author: Alisdair Cosgrove
Total Articles: 184
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Finding the right loan these days can be very confusing, as there are many different loan types and categories to choose from and the eligibility requirements for each type can vary. It is important to think about your circumstances and what you want the loan for in order to determine which loan product will best suit you. You can then look at the different loans and find one that suits both your needs and your pocket

One of the things that you will need to work out is what you actually want the loan for, as this will help you to make a more informed decision with regards to which is the most suitable loan for your needs. You will find that there are loan available for all sorts of purposes, from any purpose personal loans to wedding loans, consolidation loans, home improvement loans, car loans and more.

There are three different loan categories that you can choose from too, and again these are based on your needs and circumstances. The eligibility requirements for these loan types vary so you may find that you are only eligible for a certain type of loan. The loan categories that you can choose from include secured ...
... loans, unsecured loans, and short term payday loans, and you will find a range of lenders that offer these different types of loans

You will find a number of lenders that offer secured loans, and these loans are aimed at homeowners who have some level of equity in their property. The secured loan is secured against the equity in your home, and the amount that you can borrow will depend on how much equity you have. Whilst you can enjoy greater borrowing power and long repayment periods with these loans you also need to bear in mind that you risk losing your home if you do not keep up with repayments on the loan

For homeowners that do not want to take out secured finance and for non-homeowners there are also unsecured loans, which are not secured against any asset and are based on contract only. The repayment periods are far shorter with these loans, and the borrowing power is not as great as with secured loans. You will also need to have decent credit in order to be eligible for one of these loans, especially with the tighter credit conditions that are now in place.

There are also shorter term loans available in the form of payday loans, and these loans are for relatively small amounts for a short period of time. These loans are designed to tide borrowers over for a few weeks until payday comes around and there are no credit checks carried out with payday loans. However, you do need to prove your income and that you have a bank account in order to get a payday loan
Alisdair Cosgrove interests include mortgages, loans and other personal finance topics and has been writing for numerous years and can find more of his work at the UK site LoanEmpire.co.uk, offering cheap debt consolidation loans and also great information on many mortgages.