As the loan market has grown so much and become so popular, it is clear that new ways of borrowing are needed as the crowd of borrowers has grown so much. In this article we will focus on the different types of loans available, which ones are best to use and why.
What is a Consumer Loan?
A consumer loan is a loan you take out, if you need air in the economy, to be able to consume a little extra. So only the imagination sets the limits for what you can borrow. If you want to go on a vacation, buy a pair of new pants or invest in shares, you can do so freely with a consumer loan.
It also lies in the name, consumer loan you borrow for your consumption. However, the interest rate is often really high on consumer loans, so this is clearly something to be aware of when taking out a consumer loan.
What is a Mortgage?
A home loan is a loan that is tailor made for you, who may need to buy a new home or build your own home. Here it is probably best to go into your own bank and ask for a mortgage, as interest rates may also be too high in the private market. But here you can borrow money for everything related to housing.
Some banks and private providers, however, only offer mortgages for example. owner-occupied housing, not for example. cooperative housing, it is important to be aware of.
What is a quick loan?
A quick loan is a loan that only takes a split second to be paid off. However, there are higher fees than if it is a normal bank loan. The reason for this is typically the quick process you pay for, but in return you get the money really fast. With a quick loan, you can typically borrow between USD 500 and 10,000, depending on your budget and how your personal finances look.
What is an SMS loan?
With an SMS loan, you take the loan over SMS, it is a slightly old form of loan type since you do not use SMS as much today as you once did. Typically, it is expensive to take out an SMS loan and they have been regulated a lot over the years, but some still take advantage of it.
What is an RKI loan?
An RKI loan is for those who are registered in the RKI or debtor register but who would like to borrow money anyway. It is not the banks that offer this, typically only private loan providers in the market, but they are out there. Among other things. Aurora Finance mm
What is a Car Loan?
A car loan is a loan designed for you who would like to buy a new or used car. Here you can typically borrow between USD 5,000 and 500,000. One of the very big ones in Denmark is the E-Money car loan, which among other things. is recommended by the Consumer Council Think.
What is an interest-free loan?
An interest-free loan is a loan that claims to be virtually free. But most often it never is. You usually pay really big sums for a setup fee and other miscellaneous fees. So, remember to wear your glasses when researching interest-free loans.