Loans
Major types of loans include personal loans, home loans, student loans, auto loans and more. Each is helpful for a different purpose, and has different terms and requirements. For example, personal loans can be used for anything, last for 1 to 7 years, and have APRs ranging from 6% to 36%. Student loans, in contrast, can only be used for college, last for 10 or more years and have APRs ranging from 5% to 14%. Each type of loan is unique.
There are even some loans that are predatory and not worth pursuing, like payday loans and auto title loans. But they are still important to know about. Below, you can learn about all the different types of loans that are available in detail.
Types of Loans:
- Personal loans
- Auto loans
- Student loans
- Mortgage loans
- Home equity loans
- Credit-builder loans
- Loans from friends/family
- Payday loans
- Auto title loans
- Pawn shop loans
These loans have vastly different APR ranges, dollar amounts and payoff timelines. Some are secured by collateral, such as home equity loans and auto title loans. Others are unsecured, like student loans and most personal loans. In addition, some have a wide range of uses, while others only pay for certain expenses.
One thing most loan types have in common is that the borrower gets a lump sum upfront and pays it off over time. But there are even exceptions to this, such as credit-builder loans.