If ever you are short in funds, don’t cry in despair. While you can search for other resources to gain funds such as an extra job, asking loved ones for some financial support, or cutting back in some things in your life, you can actually head to a moneylender to solve the problems of your debt until such time your paycheck is released. That way, you’ll be able to pay the bills needed without going completely broke, and there’s no need to waste time and effort looking for other alternatives, as people who provide these services can lend you’re the much needed cash quickly.

But if there’s one thing you need to know, it will have to be the different kinds of money lending services companies and people provide. Depending on how much you need, when you need it, and when you can pay, these types of services are there for your needs and terms you agree on. So what are the different types of money lending services you can obtain from a money lender?

hard-money-loan

  • Secured loan

These are loans that are secured by any property you own as collateral. Under this type of loan is the:

  • Mortgage loan

Loan where money is used to buy the property, but the bank owns the title of the house until such time that the homeowner is able to pay the whole amount off. There are two different types of loans under this:

  1. Direct auto loan – Banks give the loan directly to the client
  2. Indirect auto loan – The auto dealership or real estate agent will be the one transacting with the bank regarding the cash
  • Unsecured loan

These are loans that are not secured by any property, and interest rates will depend on the person or company you are lending from. Take note that secured loans have lower interest rates than unsecured ones.

  • Subsidized loan

This is a loan where interest is reduced, usually used for student loans.

  • Demand loan

These are short term loans with no specific deadline of payment, but have an interest rate that varies. These may be secured or unsecured.

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  • Concessional loan

These have a higher amount of money that can be borrowed on lower interest rates, usually for employees as a benefit.

There are times in an adult’s life where they end up not being able to afford the luxuries around them, as well as their necessities. Family emergencies, overdue bills, and other types of debts roll by quickly, and some people unfortunately spend more than what they make! No matter how much one can save up, there will always be one point in their lives where what they make is just not enough to sustain their lifestyle, or it may be because their paycheck will be coming in later, and debt collectors pay no sympathy other than their own deadline. That’s why it’s best to know what loans there are available just in case you do need it.

Different Types Of Money Lending Services You Can Get

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