What Are Consumer Loans?
Consumer loans, unlike business loans, are usually not secured by anything but the credit worthiness of the consumer applying for the loan. Often, fast cash loans are often marketed online and via electronic means, and tend to be called payday loans. They are the simplest form of a consumer loan, where the applicant applies for a cash advance that is approved within a short period of time, generally within one to four weeks. The applicant then must pay back the lender in order to obtain the cash advance.
These types of consumer loans can either be secured or unsecured consumer loans. A secured loan is one that requires a borrower to put up some type of collateral – often property or the home of the lender – in return for the loan amount. Unsecured consumer loans tend to be those that do not require collateral, but come with higher interest rates. Both types of loan have their advantages and disadvantages, depending on the situation and needs of the consumer.
There are many different types of lenders when it comes to consumer loans. Most lenders are available through large banks and finance companies, and many lenders offer personal loans that do not require any type of security from the applicant. Some of these lenders will allow you to apply for a loan online, meaning that all you will need to do is complete an easy application form and submit it to the lender, and the lender will make all of the decisions about your loan. You can also find many lenders who will lend you money directly, without ever having to see you or talk to you at any length. Regardless of which method you choose to apply for consumer loans, you can apply online, by telephone, mail, fax, or personally.