SearchExclusive.com

Types of loans and their features

Loans play a crucial role in helping you meet financial requirements such as college education, purchasing a car or a home, and emergencies. You can obtain a loan from a bank, credit union, or an online lender. There are several loans available that can be used by commercial or business establishments, such as SBA loans, equipment loans, working capital loans, and term loans. They are the best option for financing business plans.

Loans can be easily availed by anyone. But before you borrow money from any financial institution, it is important to compare the interest rates and terms offered by various lending institutions to get the best rates. Easy loan facilities and customer-friendly repayment plans will help you tide over any type of short-term financial hitches.

Types of loans

Personal loan
Personal loans can be availed for a number of reasons that include home renovations, weddings, debt consolidation, vacations, and much more. Choose from a wide variety of personal loan options to help you to meet your financial needs. A personal loan is a perfect way to get the cash you need without paying a large amount of interest. Be aware of the extra credit card charges and late fees.

Personal loans can be categorized into two – secured and unsecured loans. Loans that are taken against collateral are termed secured loans, whereas loans granted without collateral and are backed by the creditworthiness of the borrower are known as unsecured. The interest rate for unsecured loans is comparatively higher than for secured loans. You can apply for these types of loans either online or avail of them from a bank or credit union. Borrowers with good credit scores could be offered low-interest rates and a range of easy repayment options.

Student loans
If you are planning to pursue higher education, then you should consider securing student loans. There are two types of these loans- federal and private student loans. Federal student loans come with more benefits and protection but have higher interest rates. To secure them, you need to fill in a free application for Federal Student Aid. You can contact your educational institution’s financial aid department for the application and details.

If you have good credit, you can qualify for private student loans. These loans offer fewer benefits and protection, but with a good credit card, you can qualify for better rates. Securing private student loans enables you to pay tuition fees and living expenses at accredited schools across the country. However, you cannot use it to pay for specific types of education, such as computer coding or graphic classes.

Home equity loans
A home equity loan, also known as a second mortgage, is a great way to use your home’s equity to get a bigger line of credit without having to put any money down upfront. You may be able to borrow nearly 85% of your home’s equity and secure a repayment plan that could span anywhere between five and thirty years, depending on your financial situation. However, if you already have a mortgage on your house, the interest rates are likely to be higher than a traditional mortgage, and the repayment process can be lengthy and difficult.

Mortgage loans
Banks and credit unions mostly offer these types of loans. However, there are some government-assisted mortgage loan programs that are available too. To avail of the government programs, you need to meet certain criteria as these are usually for low-income families, active-duty service members, and veterans.

Auto loans
These are a type of secured loans that are used to buy a vehicle. The repayment terms vary, and the period could be between three and seven years. The collateral for an auto loan is the vehicle itself, which means if you cannot repay the loan, the lender will take charge of the vehicle. Auto loans can be secured from banks, credit unions, online lenders, and car dealers.

Payday loans
These are short-term loans that are not credit-based. They are available at high finance fees, and the repayment plan is till the next paycheck. If you exceed the limit, you need to pay higher fees.

Title loans
These are secured short-term loans where you need to pledge the title for your vehicle as collateral. The loan limit is within 25% to 50% of the value of the vehicle, which the lender evaluates. The repayment option typically is only up to 30 days.

Small business loans
Several types of small business loans include small business administration, equipment, working capital, and term loans. They are useful for startups and small businesses like family-owned enterprises. They are the best option for financing business plans.

Land loans
Land loans are of two types, namely improved and unimproved. The former is used for land ready for construction, whereas the latter is for vacant land. Land loans have higher interest rates, stringent down payment options, and credit requirements compared to other property loans.

Family loans
These are informal loans that family and friends can secure. Draft and sign a loan agreement that includes interest payments, due dates, and late fees.

Before approaching a lender, it is important to comprehend what type of loan you need. Additionally, research and compare the interest rates to get the best deal.

Related Reading

Tips for Buying the Best Dog Food

Most of the dogs do not have a food fuss and may eat almost anything that you feed them. Dogs are not choosy at all when it comes to food and nutrition. Hence, it is important to make sure that the food that you are purchasing for your dog is healthy. The landscape of dog food has been developing by leaps and bounds in recent times. There is a wide variety of options to choose from in the online and offline market. Given the wide range of options that are available today, buying the best dog food might seem to be a confusing task indeed. All the commercial pet food that is available in the market today is regulated by the FDA. Therefore, most of the products do contain nutritious, healthy, and safe ingredients. But it does help to know certain basic factors you should look for while buying food for your dog. Prioritize on the nutritional guarantee The best dog food, which meets the dog’s needs adequately has a statement written on the label of the product, from the Association of American Feed Control Officials. Buy from some of the best dog food brands, such as Fromm Family Foods, Earthborn Holistic, Nature’s Variety Instinct, and The Honest Kitchen.

Different Types of Kitchen Cabinets Available for Your Home

The most important aspect when designing your kitchen is deciding on the type of cabinets. In addition to functionality, kitchen cabinets score on aesthetics as well. Once the layout is planned, you can go ahead with choosing the cabinets. If you’re remodeling your home or just the kitchen, what you need to consider are the types of cabinets that furnish your kitchen. Here are a few types of kitchen cabinets that you can choose from. Base cabinets These kitchen cabinets are mounted on the floor and they are placed after checking out the floor plan. A major part of your job in the kitchen is on these base cabinets, which hold and support the countertops. These base cabinets are combined to carve out kitchen islands. A number of base cabinets are fused/set against one another and installed on site. The base cabinets, in addition to supporting the countertops, serve as drawers to hold your cutlery and appliances. Wall cabinets Mounted on the walls, these cabinets can store everything, right from your cookware to cookbooks. In terms of design, they offer utmost flexibility. Wall cabinet kitchen is available in varying heights, multiple widths, and custom depth options. This customization helps you to fit in your stuff of varying shapes and sizes into the wall cabinets.

How to Pick the Right Dog Food for a Sensitive Stomach

In today’s world, where you are presented with over a dozen choices for every item you would purchase for your own kitchen, it is not surprising that you have an equal number of options for your dog’s food. However, choosing the perfect brand and formula for your dog out of a range of options in the market is not an easy job. Your pet depends on you and trusts you to make the right choice for them. Therefore, it is imperative that you do your research about the products available in the market, understand what your dog needs, know what might be your pet’s problems, and then make a sound decision. What is a sensitive stomach? Dogs are known to have voracious and large appetites. Keeping that in mind, it is normal to assume that they have strong stomachs. They can eat close to anything be it sweets, bakes, chewy gum, hard leather or even woolen socks for that matter! It always so happens that the strongest of them are prone to allergies and can develop a disorder which is medically translated as a sensitive stomach. This might be due to a sudden change in the food habits or even due an infection picked up from somewhere.

All You Need to Know about Cat Food

For cat owners, cat food is a hot topic. You need to think about it in different aspects. The best thing is to know which ingredients are good for cat food and which are harmful. If you are aware of this, you can get an idea about the quality of the cat food just by going through the label. It is always sensible to stick to one brand of cat food. However, you may also want to try and prepare cat food yourself. There are also various options for wet cat food as well. Cat’s love for fish is universal, so you can do without going for expensive cat food. Nevertheless, whether you buy it or prepare cat food at home, you need to ensure that the food contains enough nutrition and calories. You would need to have some idea about the ingredients that must be present in cat food and make a worthy selection for your cat. Basic ingredients present in good cat foods Cats need a variety of nutrients to stay healthy and active; they need various vitamins, minerals, fats, proteins, and oils. The following is a brief explanation of the basic ingredients that should be present in cat foods.