People can’t manage all their expenses through their income. When they have big goals in mind and want to pursue their dreams of buying a home or car, then they need to rely on a loan. In the past, it was pretty hard to get approved for a mortgage or auto loan. In the age of the internet, everything has changed a lot. Now you can have your hands-on online consumer loans, which are super convenient.
What is a Consumer Loan?
It is a general umbrella term that covers a wide variety of consumer loans. Some loans require collateral while others are unsecured and don’t require you to put your car or home as security. The fact is that tons of options are available based on consumer’s requirements.
Common Types of Consumer Loans
Here are some types of online consumer loans which are provided by several online lenders.
Not every student has enough money to fund his education. In 2019, more than 54 percent of college attendees took student debt while the average debt per borrower is $35,359. If you don’t have enough funds to manage your college fees and expenses, you can opt for student loans online. As far as paying back this loan is concerned, the lender will require repayment once your education gets completed, and you have a job to pay back student loan money plus interest.
Everyone has a dream of living in his own home, and your dream can come true through mortgages. In this type of consumer loan, you buy a home after making down payment (3-20 percent of home price) while the lender will pay the rest of the money. You sign up for a mortgage in which your home is used as collateral for a loan. If you don’t pay the lender back, he can sell your home and recover the loan amount. The term of this loan is longer than other types of consumer loans, which is 15 to 30 years.
Do you want to buy a car? Can’t afford to pay $100,00? It’s not a problem anymore as online consumer loan guides show you how to have your own car and drive it freely through an auto loan. This loan correctly works like a mortgage as the vehicle is used as loan collateral. However, the term usually is shorter; you will pay back the loan in two to seven years.
This is another kind of secured auto loan where your car’s title will be used as security. If you own a vehicle, you can put its car title as collateral to obtain a loan amount for meeting your emergency cash needs. This auto loan is short term, thirty days to three months.
In this type of online consumer loan, you borrow money to pay for something. For example, you want to go on a vacation and get a loan for it. Or your big day is coming, and you don’t have money to handle wedding expenses. In that case, you can apply for a personal loan online.
A consumer loan is a life-saver option that you can use to arrange funds for something that matters. Try to understand every kind of loan before you opt for it. As you are going for online loans, make sure you read terms and conditions to understand better what you are getting into.