Turcev - Your Consumer Loan Homepage
Consumer loans are a type of loan that an individual gets from a financial institution like a bank or a lender. Consumer lending is different from commercial lending, which is where banks lend money to business entities. There are many different types of consumer loans, such as mortgages, credit cards, and auto loans. No matter the type, all consumer loans work in much the same way; the consumer is given money up front with the knowledge that they will have to pay the full amount back, plus interest, within a specified time.
Almost everyone will at some point in their life need a sizable amount of money, to make a purchase or take care of a personal need. Whether one needs cash for a down payment on a home purchase, or to buy an automobile so they can get back and forth to work, consumer loans are the only real way for them to get the cash they need. There is a whole industry surrounding consumer lending, where banks and lenders give people money up front and the consumer pays it back with interest. There are a variety of ways that lenders and banks profit from consumer lending. If there is a secured loan, the borrower has to offer up something for collateral. If that borrower defaults on the loan, the lender or bank can take the collateral in lieu of repayment.
You probably already know that consumer loans come with attached interest. Interest is an amount of money added to the payment that the borrower must make to the lender. The interest rate can vary according to what kind of loan the consumer gets, whether that loan is secured with collateral or not, the loan's term (how long it will take them to repay it), and the borrower's credit history. If a consumer has proven in the past that they are a good credit risk and that they are able to pay back the loan, they will likely get a much better rate.
Mortgages are a very common type of consumer lending; the borrower makes a down payment on a home and then pays the remainder with interest in monthly installments. Credit cards are another form of consumer lending- any person with a credit card is in essence getting a loan from the creditor every time they swipe the card. Banks and lenders may also offer personal loans to their customers, with the funds to be used as the borrower sees fit. We're here to take some of the mystery out of consumer lending- understanding these loans and getting them doesn't have to be hard.