What are the different types of loans?

Whether you are going to college, getting married, purchasing a car or cottage or perhaps having a more uniquely private expense on the frontier, several types of loans suit several borrowers. It’s wise to accustom yourself to types of loans and their finer details, including repayment terms, APRs and credit regulations. There are many lenders good at moneylending in ang mo Kio. Here, we will discuss the various types of loans.

Different types of loans available

It is always a good idea to save up money before going all out for a large purchase. This is particularly true for expenses like college and schooling fees, or that of a car, or even immediate emergencies, like medical bills. Below listed are different types of loans which can be considered.

Personal loans

The personal loan type can help you enhance   your credit limit. This amount could be used for essential or spontaneous expenses such as medical emergencies or for buying some home appliances. There are various types of loans that could be borrowed based on the requirement and purpose of the expense. Different personal loan types go by numerous names based on their purposes. It may be secured or unsecured.

Mortgage loan

A mortgage loan is a secured loan type that enables a person to avail the benefit of a loan amount by keeping a reliable asset, such as a building or marketable property, as collateral to the lender. The lender has the right to seize the property in case of failure of loan repayment.

Student Loan

The student loan type is especially famous among students who want to pursue some degree in foreign universities. This loan includes books, stationeries, university fees, and living expenses. A notable feature of student loans is that the interest rate is lower. Also, the tenure of repayment is flexible. Nowadays, student loans are gaining popularity due to the rising expenses of the education sector.



As per the requirement of an individual, there are different types of loans available. Apart from the above-discussed types, there are some more loan types available for individuals as well as commercial institutions.

An applicant’s credit record is one of the most significant factors a lender evaluates when assessing a loan petition. Credit scores range from 350 to 870. This score is established based on characteristics like expenditure history, amount of outstanding obligation and duration of credit history