Loans: Short Term and Long Term for Your Personal and Business Needs

Loans come in a variety of shapes (types), sizes (loan amounts), and prices (interest rates and other costs). From short term payday loan and cash advances to hedge against unexpected emergencies to long term auto and home mortgage designed to finance your prized asset purchases, lenders offer highly customizable loans for almost any financial need and budget.

While personal loans are used to consolidate bills, handle emergencies, finance purchases, or facilitate renovations, business loans are used either to serve as working capital or to facilitate business expansion efforts.

Easy, Three-Step Loan Application Process

A Primer on Loans

Personal Loans

If you need money to fulfill a short term or emergency financial need, personal loans may be the right solution for you. Generally, personal loans offer flexible payment terms and come with a fixed payment schedule, interest rate, and periodic payment amount. Once the loan is approved, most lenders will not restrict your usage of the loan and you are free to use it for any legally-acceptable personal need.

Once approved, most lenders will offer the convenience of having your money deposited electronically to your bank account in as little as 24 hours.

In addition to this broad umbrella of personal loans, there are various subcategories that you may wish to learn about. Personal loans with varying repayment terms are designed for both individuals with good credit and bad credit. Though not exhaustive, here are some additional varieties of personal loans:

Secured

As the term suggests, a secured personal loan is made in lieu of some collateral that is used as security against the loan amount. This is for the lender’s safety.

Unsecured

Unsecured loans, on the other hand, are not made against an asset and are mostly provided for at the lender’s terms.

Payday Loan

Pay day loans are short term loans that are offered until your next “pay check”. They carry higher interest rates and are to be returned within the period of a payroll cycle.

Cash Advance

Very similar to a payday loan, cash advance offer short term liquidity until your next pay check arrives.

Auto Finance

Auto or car loans enable you to purchase your next vehicle -- car, RV, boat, motor cycle, any vehicle purchase that can be financed under the applicable regulations.

Student Aid

Student loans are designed to enable students to complete their education and are either offered through private lenders or the federal government. Interest rates may be low and repayment terms are very convenient.

Debt Consolidation

Debt consolidation are a subcategory of personal loans and are generally offered by the lender to enable you to consolidate and repay a variety of debt obligations through one easy loan. No more multiple loan payments, just one payment.

Credit Card

We bet you know this. Yes, your credit cards are also a form of loan.

Home Finance

Whether you want to purchase a new home, refinance an existing one, or make those much needed improvements to your home (home equity loan), home loans are further categorized as home loan (mortgage), refinance loan, home equity loan, and various other vanilla varieties.

In addition to these broad categories, there are many other loan options that one can choose from and if you browse through our site you can learn more about them.

Business Loans

Thus far we have spoken about personal loans, but there is also another subclass that serves small and large businesses and these arrangements are made either as small business loans, line of credit, SBA-backed loans, or other financing arrangements designed to ensure liquidity and business capital for business needs.