Overview Of Different Types Of Consumer Loans
In recent years there have been several different types of consumer loans, some cheaper than others. The only thing that separates these loans is the interest cost and the repayment period. Here we take a closer look at different types of consumer loans.
Small loans without collateral
With a small loan without collateral, you can borrow up to $ 50,000 without collateral. Occasionally, situations arise where you need a little extra financing, whether it is to buy a new washing machine or a new engine for your car. Since small loans are lower than traditional consumer loans, the interest rate will be somewhat higher. As with all loans, a small loan must be repaid. It is therefore important that you have good control over your personal finances before applying for such a loan.
Home improvement loans were first introduced by NorthBest Bank a couple of years ago. The loan is intended for renovation of the bathroom, kitchen, living room or for the development of the house. Typically, you will be able to borrow up to $ 400,000 with a flexible repayment period of up to 15 years.
Car loans without collateral
Sometimes consumers do not want to provide security for car purchases. Fortunately, there are unsecured car loans that help you do just that. With a car loan without a mortgage, you can borrow up to $ 400 00 and the loan is paid out within 1-2 business days. The interest rate is somewhat higher than what you would otherwise get if you took out a car loan with collateral.
Refinancing of small loans and credit debt
Debt refinancing means you accumulate expensive loans and credits under one loan with a lower interest rate. Not only do you save money but you also get a better overview.
With a traditional consumer loan, you can borrow up to $ 400,000. The interest rate will usually be somewhere between 8.6 – 20%. There is a lot of money to save and compare loan offers, so it is important that you spend some time when you are looking for a new consumer loan.