Would you like to take out a loan but have doubts about what kind will best suit you and your needs? Don’t know exactly what the difference is between the different types of loans at all? Fortunately, there are answers to that.
A bank loan is – funnily enough – the kind of loan you apply for through your bank. When you take out a loan through your bank, it is often a bigger loan for, for example, home purchases or similar.
The overall differences
The loan is often secured, which means that you have secured something with your bank so that your bank is guaranteed that they can get their money back. For example, if you take out a loan to buy a home, you can put your home in security. If you do not repay your loan, the bank basically owns your home and can sell it to make the money you cannot pay back.
A repayment loan, on the other hand, is a small amount of loan, which is often taken too quickly to pay for something, or as a consumer loan. The loans are not secured, so you do not have to worry if suddenly one day someone stands outside your door charging home and home.
What makes a quick loan quick
A quick loan is taken over the net and you as a customer have greater power over the number of months you would like to pay over. You may want to pay it off quickly and repay a larger amount over a shorter period of time, or you would rather pay a smaller amount over a longer period. With a quick loan, you are more than a bank loan, even a master of this.
One of the major benefits of a quick loan is that a large part of the paperwork that usually belongs to a loan is skipped by a quick loan. Therefore, you will often receive a reply to your application after a few minutes and can expect to see the money tap into your account, after a maximum of 24 hours.
When looking at taking out a loan online, it is important that you compare your options. Read things carefully so you are sure not to be cheated, and look through the many options to find the best deal for you.
The good old bank loan
The advantage of a bank loan is, firstly, that you can borrow a much larger amount if you go through your bank. Unless you find the large amount of paperwork frustrating, it is very likely that you appreciate the sense of security that can come with a bank loan. You sit face-to-face with another human being, and have a conversation about why and how you would like to take out a loan.
If you have been a regular customer in a bank for a long time, you may also have earned a high cash credit and can get some good prices on your loan. Thus, if you are lucky, a bank loan may be cheaper in the long run than a quick loan.