Loans

Today, it is not difficult to urgently get a certain amount of money right. On the one hand, this is an excellent “airbag” as a last resort, but on the other hand, such opportunities drive many people into debt pits. The market offers a wide variety of loans with different conditions – auto loans, microloans, personal loans and others. Today, we will understand the differences between them and compare the advantages and disadvantages of each loan.

Types of loans

Bank loans

Bank loan is the amount of money provided by the bank for a certain period and on certain conditions; a certain technology to meet the financial need declared by the borrower.

Such a loan is taken not only for the purchase of durable goods (apartments, furniture, cars, etc.) but also for other purchases (mobile phones, household appliances, food). A rather high interest rate is charged.

Auto loans (car loans)

Auto loan is one of the easiest and most affordable ways to get the right amount. Financial institutions provide the opportunity to get such a loan.

To do this, you need only a proof of identity, proof of residence, car license and proof of insurance. You fill out an online application, the loan organization reviews it (usually takes about an hour) and makes a decision on the possibility of a loan. If the decision is positive, you need to drive to the office to inspect the car and sign the contract, which fixes the amount and term of the loan. The time from signing the contract to issuing money will take no more than 30 minutes.

There is no need to leave the car with the company – you can continue to use it.

You sign an agreement with a fixed amount and due date.

The only drawback is the inability to sell or bequeath a car until you repay a loan.

Microloans

A microloan is a small amount of money (usually up to $1,000), which can be easily obtained even online.

To receive such a loan, you only need a proof of identity. Often you do not even need to go the company personally. This is a convenient option for those who need a small amount for a couple of days.

Disadvantages:

  • high interest;
  • great chance of cheating. Due to the availability of such a loan, it is easy to run into scammers and fall under the unthinkable conditions of the contract.

In case of urgent need for money, you should approach the choice of a financial organization with proper responsibility and the study the contract carefully.

Personal loans

This is a simplified version of a bank loan, the amount of a loan depends on the selected company and can range between $1,000 and $50,000. There is no need to confirm your financial position. Another undeniable advantage is the speed and convenience of loan approval and the absence of paperwork.

Drawbacks:

  • every high interest rates;
  • possible pitfalls in the contract.

To avoid scammers, you need to choose a good organization that provides a loan.

Mortgages

Mortgages are also known as “liens against property” or “claims on property.” This a loan from a bank or other financial institution that helps a borrower purchase a home.

Mortgages can be issued for a period of several months to 30 years. As a rule, banks offer the lowest interest on this type of loan. To apply for a loan, you will need to have a high level of income. Your loan application can be rejected if you have a bad credit history.

Types of loan transfer

Cash can be transferred to:

  • bank card;
  • bank account;
  • online wallet;
  • cash delivery directly to the borrower.

Any whim for your money!

Conclusion

If you need money urgently, you can use any method of getting it. One of the most reliable and convenient options is a bank loan as banks comply with the law. We recommend that you also pay attention to a car loan and a personal car. Study the market well and be careful when you sign a contract! Good luck!