Applying for loans is a common occurrence nowadays. People do it so that they can invest in a new car or home and they pay off a debt to the bank later. It is an easy and secure way to get the money you need and quick loans are quite popular.
People are opting for quick loans for many reasons and some of those and closely tied to settling a credit card debt, or quick money needed for emergencies. But no matter the reasons, it’s important to understand all the types of quick loans that you can apply for (More info).
1. Personal Loan
Personal loans are types of loans that are categorized as unsecured loans because there is no need to put collateral when applying. These loans are very popular in some places in the world because of the low interest rates (sometimes lower than mortgage loans) and are usually taken to settle a debt. However, the more money you want to borrow, the less chance you have of your loan being given faster.
2. Payday Loan
Another unsecured type of loan is a payday loan. Payday loans consist of less paperwork, but they involve high fees. These loans can sometimes take a very short time of approval, usually around a few hours, and in order to apply for a payday loan, you must fill some of the basic requirements. Namely, you must show valid proof of employment, be older than 18 and younger than the age of retirement, and you must show a valid work permit and proof of citizenship. Online payday loans consist of less paperwork, and can sometimes take a very short time of approval.
3. Foreign Loan
Foreign loans are given to people while staying in a foreign country, mostly due to work. The interest rates of these loans vary from lender to lender, and they are usually obtained due to some kind of emergency, relocation expenses, or renovations.
4. Education Loan
These loans are given to students who lack the funding for higher education, mostly a college education. There are a few criteria that you must fill in order to be approved for an education load, and those are:
- The person applying for the loan itself must be 18 years old or above
- And the person applying, or family members must have a minimal income between $12.000 or above
There are two main types of student loan rates: flat and monthly rate. The monthly rate can be considered a better financial option because they are generally cheaper. Other terms and conditions exist before applying for a student loan, and those are the loan tenure and the prepayment penalty, as well as, a whole other host of hidden fees.
5. Renovation Loan
As the name suggests, these loans are intended for people who want to renovate, refurbish, or improve their homes. These loans are quite flexible, meaning you can choose the repayment method but have quite high credit ceiling. These are two rates you can choose when applying for a renovation loan, fixed rate, and flexible rate.
6. Cash Advance Loan
Cash Advance Loans are similar to payday loans, meaning you have to fill certain criteria, and there is a high-interest rate that comes with them. These loans are obtained because of a financial emergency and do not require collateral. Usually, hidden fees are involved if you fail to repay in time.
7. Car Loans
Car loans are used for purchasing a vehicle in the case of you lacking the money to pay in cash. These loans require some documents in order to apply, and those are:
- Registration papers for the vehicle itself
- Proof of your monthly and yearly income
- Purchase and sales agreement