What types of loans are there?
Fast loans
Quick loans are loans for a small amount of about 100 to 1000 euros, which can be obtained very quickly, and they do not require collateral or guarantees. They are usually designed for a period of 1 to 3 months. Fast loans often have high annual interest rates, and, therefore, these are very expensive loans that should be avoided or repaid very quickly. The only advantage of a quick loan is that it can be obtained very quickly and without unnecessary questions. Some quick loan providers offer you to take out your first loan for free, however, it is important that you repay the loan in the agreed period, since interest rates are often very high.
Consumer loans
A consumer loan is usually intended to be used for some kind of consumption. There are several different names for consumer loans, such as a repair loan, a vacation loan or a personal loan.
Consumer loans are similar to fast loans, since they are also easily and quickly taken on the Internet without providing collateral, but usually with an expanded range of questions for conducting a deeper assessment of the borrower’s solvency. Consumer loans are issued for a much longer period, in fact, up to 10 years. Because they have a much longer repayment period than fast loans, they also have lower annual interest rates, and in some cases can be as cheap or cheaper than bank loans.
Consumer credit can also be obtained in the form of a one-time loan or a continuous flexible loan. A one-time loan is a fixed loan amount that is granted and debited in full at one time. After receiving a one-time loan, repayment begins in fixed monthly payments. A consumer loan can always be repaid ahead of time without additional costs.
Flexible loans
A flexible loan is a type of unsecured loan. It can be withdrawn to a bank account in several parts according to your needs. The loan applicant is provided with an unsecured loan, which can be withdrawn in small parts or completely to his own account. A flexible loan is usually a relatively small loan of 1,000-10,000 euros. Under a flexible loan, interest is paid only on the amount received, that is, not on the entire amount. When the loan is repaid, the same amount will be available for withdrawal again. Thus, it is a permanent loan that works like a credit card.
Mortgage
A mortgage is a loan that you take out to finance the purchase of a house. You can borrow up to 90% of the cost of the house. The rest you have to finance yourself. For some loans, you will have to pay an On entry fee or registration fee to get permission to receive a loan. This entry fee can vary greatly depending on the type of loan and the amount you want to receive. If you are taking out a mortgage loan, you need to provide collateral. As a rule, the lender takes a mortgage on physical assets. For example, if you are borrowing money for a new house, it is quite normal for the bank to issue a mortgage loan for the house. If you are unable to repay the loan, the lender has the opportunity to sell the asset, thereby ensuring that he will receive back the cost of the loan.
Car loans
Car loans are loans for the purchase of a new or used car for leasing or for obtaining funds secured by a car. In any case, the collateral for the loan is a car. Such a loan can be issued online, a quick decision on the loan can be obtained with a damaged credit history, the ability to issue without a down payment, in some cases, a car assessment and KASKO insurance are required, flexible terms and a large range of amounts. Leasing can be financial and operational. Financial leasing is a typical loan for the entire cost of the car, after payment the car becomes yours. Operational leasing is a kind of long-term car rental, after which you will be able to buy the car at the residual value.
