Financing Options and Consumer Loans
- By vasquez-bethh
- On 13/06/2018
The consumer loans are characterized by various kinds - variable rate loans, fixed rate loans, unsecured and secured loans, single loans, installment loans, convertible loans and a lot more.
Single loans - this is also known as a bridge loan and interim loan, as the term implies, they are for the short-term requirement for finance. Also, this kind of loan needs to be repaid at the end of the loan term in a complete payment which includes the interest rate.
EMIs or installment loan - this are paid at regular intervals, most of the time, monthly. Vehicle and home loan are under this loan. And the longer the repayment period, the more cash flow as the interest rate computations differ.
Secured loan - in this kind of loan, you safeguard a home, care, asset or any collaterals that can be utilized to recover payment in the event you were not able to make the guaranteed payment. In addition, this also applies to car or home loans and since they are supported by sizeable collateral, the changes in interest on these loans are more inferior.
Unsecured loan - this is the kind of loan that doesn't necessitate a collateral and typically given only to the borrowers who have great credit histories and ratings, more often high net worth people or companies and interest rates are amalgamated.
Fixed rate loans - a remarkable percentage of consumer loans is appropriate for this bracket. And similar interest rate applies for the time span of the loan term, on the other hand, in contrast to variable rate loans, the fixed rate loans entice more interest since there is a chance for the lender to make losses if the market will fluctuate.
Variable rate loans - the upfront of these loans have a more inferior interest rate. In addition, there is the section of adjustable interest rates that is applicable at episodic intervals of the loan term. In addition, the rate of the interest is contingent on the index that is governed by the market trends and the interest rate spread computer every month, every six months, or yearly.
Convertible loan - this kind of loan is the one where the structure of the interest can differ from the variable to fixed rate of interest and vice versa at a prearranged time during the term of the loan.
You can choose any of these consumer loans that is appropriate for your situation. Click here for more about consumer loans: https://www.huffingtonpost.com/creditcom/personal-loan-advice-_b_1821726.html.