Different Needs, Different Loans

By Investopedia. May 7th 2016

Loan proceeds can be used for a variety of purposes, from funding a new business, to buying your fiancée an engagement ring. But with all of the different types of loans out there, which type is best? In this article, we'll take you through a list of some of the more popular types of loans, as well as their characteristics and their usefulness in meeting consumers' financial needs.

1. Personal Loans

These loans are offered by most banks, and the proceeds may be used for virtually any expense (from buying a new stereo system to paying off a common bill). Typically, personal loans are unsecured, and range anywhere from a few hundred to a few thousand dollars. As a general rule, lenders will typically require some form of income verification, and/or proof of other assets worth at least as much as the individual is borrowing. The application for this type of loan is typically only one or two pages in length. Approvals (or denials) are generally granted within a few days.

Read the rest of the list here at Investopedia.com.

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