By:    Updated: December 23,2016

When there is a financial emergency, one of the most preferred options for us will be loans. A loan is nothing but a type of debt that a borrower will receive from a lender. Some people will look for a loan because they simply have no money and others decide to get loans to soften the blow of a major purpose. There are other types of loans that are helpful while making a huge purchase. Either way, loans are needed for nearly everything by most of individuals. Without loans, it would not have been possible for many to buy things that are expensive, but essential.

Business Loans

A business loan is a short- or long-term lending tool designed to help fuel economic activity. This type of loan is generally sought out to pay for such things as opening a company, expanding operations or even for improving equipment. The sources for obtaining business loans range from the U.S. government's Small Business Administration and banks to private investors. Total costs associated with a business loan can vary greatly depending on a number of factors. The factors include interest rate, term and the amount of principal involved in a loan.

Personal Loans

Personal loans, also known as signature loans, are types of unsecured loans. These loans are provided only based on individual's credit rating. If you plan to get a personal loan, then your income will also be taken into account. These loans are cost-effective and involve less risk if you are borrower. Most of the bank and other financial institutions offer such type of loans.


Personal loans can be taken for any reason. Some people use these loans for vacations, while others use them to help pay larger bills. Personal loans are just as popular as any other type of loan available.

Car Loans, Boat Loans, Airplane Loans

For those who want to buy a new or used car, car loans (aka auto loans) are provided. There are two types of car loans available: direct and indirect. In the direct loan, you will directly deal with the lender, where in indirect loans your car dealer will act as an intermediary between the financial institution and you.


If you like to own a leisure craft or a fishing boat, you can approach financial institutions to get a boat loan. Owning an aircraft is not a dream any more, as airplane loans make it true. Many financial companies offer loans for buying all types of airplanes. Not everyone can afford to buy a recreation vehicle.

Bad Credit Loans

Majority of the banks and financial institutions offer loans to people who have good credit, but there are many lenders who provide bad credit loans. They will lend bad credit personal loans although you don't have a good credit history. These loans will help you in rebuilding your credit rating.

Payday Loans

If you want to borrow money for a short-term, you have payday loans. A payday loan (also called a payday advance, salary loan, payroll loan, small dollar loan, short term, or cash advance loan) is a small, short-term unsecured loan. The loans are also sometimes referred to as "cash advances" though that term can also refer to cash provided against a prearranged line of credit such as a credit card. Payday advance loans rely on the consumer having previous payroll and employment records. These loans will help you in meeting daily expenses till you get your payday. The major advantage of a payday loan is that you will receive the money within 24 hours.

House Loans

A house loan (aka home loan) is lending vehicle pursued by individuals who are intending to either purchase or improve real estate. There are a number of different house loan choices that can be applied for, depending on personal circumstances. Each type of loan will cost borrowers money in the form of interest during the repayment process. In most cases, a house loan is written for a term of 30 years with interest payments capitalized over the course of the term. Loans for homeowners range from those designed to nearly or totally fund a purchase to equity loans that can help a current homeowner make repairs, consolidate debt or pay for other pursuits.

Student Loans

A student loan is a lending vehicle designed to help people pay for the pursuit of higher education. This type of funding can be used for accredited colleges and universities and also some trade and technical schools. Money garnered through a student loan is generally available for use to pay for such things as tuition, books, room and board and other educational-related expenses. While a student loan can be an important door opener for higher education, it should be the option of last resort. Before settling on going the student loan route, it is wise to consider other options such as private pay, scholarships and grants. These things can help keep future debt at a minimum.


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