Types of Loans – Easy to Borrow

There are different types of loans

Most types of loans are not or hardly encountered in daily life.

Of the most common, we will describe the characteristics here and show you the possible advantages and disadvantages.

The most familiar and usual types of loans and forms of money lending and credit are:

Revolving credit:
If you do not have collateral, this type of credit is often the cheapest. Especially suitable for not too large loan amounts.

Personal loan:
Relatively cheap loan form with fixed installments and fixed term. Also suitable for the elderly.

Credit card:
Can be used in many places worldwide. Often high interest rates

Debit card / Prepaid credit card:
Can be used in many places worldwide. Often high interest rates

Flash credit Mini loan:
Very fast loan for low amounts and short term. With high costs.

Hire purchase:
Mainly known as mail order credit. Usually expensive loan form. You will immediately become the owner of the goods.

Rent buy:
Same form as buying on installment with the difference that you are only the owner of the lease when the last installment has been paid.

Lease:
Mainly corporate loan form due to the tax benefit and the exclusion of unexpected costs.

Red standing at the bank:
In many cases a relatively expensive form of borrowing money. If possible, prefer to take out a standing credit or a personal loan.

Customer card:
Issued by and only valid in specific stores. Often relatively high interest rates.

Advance on securities:
If you own securities, you can often borrow them for 70-80% at relatively low interest rates.

Loan on collateral:
Generally the cheapest form of credit because of the extra security that the lender has because the loan, for example, is covered by a life insurance policy.

Mortgage:
Mortgages are the most familiar form of loans. A mortgage is the amount that you lend for the purchase of an immovable property (almost always a house), with this property as collateral for the loan.