Need a loan? “Wisegeek “ defines a loan as a financial transaction in which one party (the lender) agrees to provide another party (the borrower) a certain amount of money or asset with the expectation of total repayment. The specific terms of a loan are often spelled out in the form of a promissory note, or mortgage or other contract. The lender can ask for interest payments and other terms in addition to the original amount of the loan (principal). The borrower must agree to the repayment terms, including the amount owed, interest rate and due dates.
Because a loan can contain many hidden costs such as interest payments and finance charges, many people tend to avoid applying for one until it becomes absolutely necessary. Purchasing a new vehicle or home almost always necessitates some form of financial loan, whether it is a bank mortgage or a private loan with the seller. Financing a college education may also require a federally-backed student loan. Interest rates on these types of large loans can be fixed at the time of the application or may vary according to the federal prime interest rate.
Loans can be divided into two main categories, secured loans and unsecured loans, a secured loan has something of value pledged as collateral for the loan, these are common loans such as a home loan where you pledge your house or a car loan where your car is the security for the loan, in other words, before you can sell your car or your home you must pay off the loan balance. There are many varieties of loans that can be secured, such as a personal loan where you pledge money you have in a savings account or a pension or insurance. You can pledge anything that has a value that can be described and listed. These loans also include title loans on your car from these quick drive-in loan places and by definition cover a loan from a pawn shop where the pawnbroker actually holds the item you have pledged as security until you pay the loan.
Unsecured loans can be simple personal loans where you promise to pay but there is nothing specifically pledged or held against the loan, so the lender has no specific security. There are payday loans that are unsecured, where you promise to pay the loan back on the day you are paid. See also, history of Payday Loans. Loans from friends and family or employers are also considered unsecured, even though they loan you the money for a specific purpose or purchase unless you have signed an agreement listing out the exact terms and collateral, the loan is considered unsecured.
Loans usually have payment terms and due dates and expiration dates, so that the loan does not go on forever it is repaid by a specific time or within a specific period based on specific terms of repayment; it can be in monthly payments or just due on a maturity date, these are all spelled out in the agreement whether formal or informal written or verbal. It is always best to make sure that you always have a written agreement for a loan as it protects both parties from misunderstanding and confusion as time passes. A loan can be as simple as an IOU on a notepad or as complicated as a mortgage. Review the loans below and click the “Sign Up” button for more information or to apply. See also CashNetUSA.com and 100DayLoans.com for Payday loans. and Military Loans if you are a Veteran or active member of the Military.