Loans

A loan is the usage of money or other property of value that is lent and is expected to be paid back, or returned, by the borrower over a certain period of time.

With loans, there is usually interest involved, but not always. Whether interest is charged or not depends on who is doing the lending and the circumstances surrounding the transaction.

There are many different types of loans including conventional, FHA, VA, personal, payday, and income tax refund loans.

A loan may be secured or unsecured.

• A secured loan is one in which real or personal property is used as a pledge for repayment. Real property may be a home, commercial building, industrial building or complex, apartment building, vacant land, farm or ranch land, or other property. Personal property may be a car, jewelry, furniture, or other objects with value.
• Sources for borrowing secured loans include banks, credit unions, savings and loan associations, mortgage companies, pawn shops, some car dealerships, and certain individuals.
• An unsecured loan is one that is given with a verbal or written agreement to repay with no property involved, real or personal.

Pawn shops, payday loans, personal loans, 401k loans, and income tax refund loans.

• Pawn shops: Money is loaned against jewelry, cameras,watches, guns, musical instruments, tool, household appliances, and other valuables.
• Payday loans: Basically an advance of money on a future paycheck or other sources of income.
• Personal loans: Loans that are given that usually does not require collateral such as personal or real property.
• 401k plans and certain stock options can be borrowed against.
• Income tax refund loans are offered to people who want to get their refunds early.
• Car loans: Most car dealerships use banks and other sources to fund cars for buyers but some make loans themselves.

When you apply for a loan, the lender in the transaction normally expects the loan to be repaid and expects the payments to be made on time when they are due and a lot of time is used in processing the loan.

It is up to the lender to do everything possible to protect his interests. That is why there may be a loan application and a borrowers credit history check. Assets, employment history, and other financial obligations may also be thoroughly examined.

Interest that is charged on loans is regulated by state and federal statutes and most are strictly enforced.

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