Different Types of Loans

Different Types of Loans - Consumer Loans - Personal Loans - Student Loans- Mortgage Loans

Although usually only differentiate between personal loans and mortgages, often also the following types of loans are distinguished:

Consumer loans

These types of loans are often used to finance consumer goods lasting nature such as: a car, a motorcycle, furniture, appliances, etc. and not a very high level.

Personal loans

Such loans are usually used to fund specific needs at any given time and a small amount. It is very similar to consumer lending although in this case are used to pay for travel, a wedding, etc .. that is, intangible or perishable goods.

Student loans

These types of loans are much more used in countries like the US, the UK and other European states. In Spain they are being increasingly used, inter alia, because the financial institutions improve and expand their offerings year after year. These are loans to students to fund college tuition, graduate school or study trips abroad. The costs are usually a little cheaper than personal loans.

Mortgage loans

The mortgage loan is characterized in that, apart from the personal guarantee, offered as collateral a "security 'consisting of mortgage of immovable property. Failure to repay the loan the bank would become the owner of the house.