Loans: Questions Answers

What is a payday loan?

A payday loan is a short-term loan that can help you cover immediate cash needs until you get your next paycheck.

What is an installment loan?

Installment loans include any loan that is repaid with regularly scheduled payments or installments.

What is a mortgage?

A mortgage is a loan from a bank or other financial institution that helps a borrower purchase a home.

What is a car loan?

is a sum of money a consumer borrows in order to buy a new or used car.

What is a personal loan?

A personal loan is a type of loan that allows flexible use, short- to moderate-term repayment options and relatively quick funding.

What is a buy-to-let mortgage?

A buy-to-let mortgage is a mortgage sold specifically to those consumers who buy property as an investment, rather than as a place to live.

What is a student loan?

A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies

What is a home equity loan?

A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral.

What is an FHA loan?

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA).

What is an online loan?

An online loan is a loan acquired through the internet.

What is a loan guarantee?

A loan guarantee is a pledge by one party to become liable for a debt obligation if a borrower defaults.

What is an unsecured personal loan?

An unsecured personal loan is a loan given out without the involvement of any collateral.

What is a secured personal loan?

A secured personal loan is a loan guaranteed by an asset, such as a car.

What is a loan term?

A loan term is the amount of time during which a borrower makes monthly payments towards a loan.

What is a cash advance?

A cash advance is a short-term cash loan taken against your credit card’s credit line.

What does loan interest mean?

Interest is the price you pay to borrow money from someone else.

What is a line of credit?

A line of credit is a loan that is very similar to a credit card as you get a specific amount of money that you can use for any purpose, and you are charged interest only on the amount that you use.

What type of loan has the highest interest rate?

Unsecured personal loans comw with the highest interest rates.

What is a loan application?

A mortgage application is a document submitted by an individual applying for a loan.

How are loans paid back?

When you get a loan, you will need to pay back the loan amount plus interest within an amount of time.

How to apply for a loan?

You can usually apply for a loan online. Alternatively, you may be able to apply in person at one of the lender’s in-store locations.

Can you pay back a personal loan early?

Yes but some personal loans have a prepayment penalty. If you pay off the loan eaarly, you may have to pay a fee. Read your contract carefully.

What is a loan guarantor?

A guarantor is a person who guarantees to pay a borrower’s debt if they default on a loan obligation.

What is a business loan?

A business loan is any type of financing that’s used to fund business expenses — from paying staff wages to purchasing inventory.