Types of Bank Loans

Major banking institutions offer numerous kinds of loans, which can be used for a variety of reasons. Each loan has different requirements and terms as well, lasting for differing durations. Some of the most commonly received loans include:

  • Credit-builder loans
  • Personal loans
  • Mortgage loans

Credit-Builder Loans

A credit-builder loan is a loan that an individual may get if they are not in need of money for any specific purpose – they simply want to boost their credit by making on-time payments and adding to their credit history. These loans are typically deposited into a savings account, which the borrower can use to pay off the loan over a period of months to increase their score.

Columbia Bank
900 White Horse Rd, Voorhees Township
NJ 08043, United States
Phone: +1 856-772-9300

Personal Loans

Personal loans are one of the most versatile loan options you will find at banking institutions like Columbia Bank Voorhees Township. They give individuals funds that can be used for just about any purpose they choose, as long as the purpose is not illegal. Lenders may, however, put restrictions on personal loans, such as making loans unable to be used to pay for college tuition.

Mortgage Loans

Mortgage loans are used when an individual wants to purchase their own home and does not have enough money to pay the full amount of the home upfront. With mortgage loans, you will be able to live in the home while paying off the loan for the home. Until the loan is paid off, the bank owns the home and inhabitants are responsible for any fees or payments due to the bank.

These types of loans are not the only ones available, but you will find that these are very commonly used by individuals throughout the world. If you’re considering getting a loan, make sure you ask about he specifics of the loan and what expectations you should be aware of.