Types of loans - Get to know them

The types of loans literally know no limits, just as mutual funds. You can borrow money from both bank and non-bank companies. However, this is only the very basis of the actual division of loans. They can be approached on the basis of different criteria.

• According to the collateral
• According to the salary
• According to the purpose

If you're interested in borrowing for a specific item, it's definitely worth knowing your loan options. We will now introduce you to the different types of loans in more detail.

Consumer credit and other

The most well-known types of loans are undoubtedly consumer loans. These can be cash and non-cash. It depends on what you prefer. Whether you need cash in hand or a bank account is better for you. Within consumer loans, you will come across two categories. These are purpose loans for a specific thing and non-purpose loans for anything. Leases are another financial product.

Type of lease	Information
Financial leasing	You are not paying the full amount
Operative leasing	The car is not yours
Leaseback	You pay back gradually

Leasing is most commonly used in the financing of vehicles. It is available not only to commercial entities but also to individuals, among whom it is experiencing a certain boom.

Other types of loans

In the context of conventional loans, you will see, for example with overdraft facilities. The overdraft is part of the bank account and allows you to draw into the negative. Its imaginary offshoot is a credit card linked to an interest-free period. If you know how to use it, it becomes quite a handy tool. Classic slice purchases can also be folded into this list.

Among the most popular types of loans include those that can be used to finance your own housing. The basis of everything is undoubtedly the mortgage, which may have its offshoot in the form of the American mortgage. With it, you are assured that the borrowed money is not to be used only for housing, but for anything else. The biggest competitor to mortgage loans is building society loans. In addition to the regular one, you will also come across a bridging loan when you do not meet all the conditions for obtaining the regular one.

Nor should we forget about borrowing from the people. In the non-banking segment, micro-loans amounting to only a few hundred to a thousand crowns are represented.