Home loans : home loan is another word for a mortgage, where money is borrowed in order to purchase property. The security for the loan is the property itself. As the loan is secured, it is a comparatively affordable borrowing solution, as lenders will be able to offer lower interest rates on a home loan than they do with loans that are unsecured, such as personal loans.
Car loans: A car loan is a personal loan intended specifically for the purchase of a car. Car loans can be used towards new or used cars and are often issued as hire purchase agreements – that is, the customer leases the car until he or she has paid off the car loan in full, at which point ownership of the car will be transferred from lender to borrower. Such “buy now, pay later” repayment plans give borrowers the added benefit of being able to use the car right away.
Personal loans : A personal loan is a general loan for personal use. A borrower can take out a personal loan for a wide variety of purposes, from purchasing a car to financing a wedding. Though there are many different types of personal loans, they are normally issued in small or modest sums and must typically be repaid in 1 to 10 years.
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