The first thing that someone thinks of when the word loans is mentioned is money. Loans are not always a monetary exchange but these are the most common type of loans.
Loans can be offered on many different bases and can be paid back in several different ways and throughout different periods of time.I like to share this interesting Dutch article geld lenen zonder bkr toetsing.
A loan can be secured by collateral. A mortgage on a house is a perfect example of a secure loan. Another example of a secured loan is a car loan. In this type of loan, if you do not pay the loan back within the specified guidelines, the item that you purchased with the loan can be taken from you by the entity that has loaned you the money.
You may also obtain a secured loan by offering a house or a car that you have purchased as a type of insurance that you will pay the loan back. Just as in the previous example, if the loans is not repaid within the terms set forth, the bank can repossess the owned item to settle the debt that was incurred in the loans.
Another type of loan is an unsecured loan. This type of loan carries more risk for a lender so the amounts loaned are usually smaller than what would be given with a secure loan. The most common type of unsecured loan is a credit card. Usually with a credit card there is no collateral that can be taken from the lender to repay the debt in the case that the borrower is not able to pay the loan back within the specific guidelines laid out in the loan. Terms of payment on both types of loans can vary greatly so be sure to note this detail in every type of loan.
