Types of Loans

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MotivatedMalachite
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8 Questions

Match the following types of loans with their descriptions:

Match the following loan terms with their definitions:

Match the following loan characteristics with their descriptions:

Match the following loan benefits with their descriptions:

Match the following loan types with their key considerations:

Match the following loan types with their typical amounts and usage:

Match the following loan types with their collateral requirements:

Match the following loan types with their tax implications and interest rates:

Summary

Types of Loans and Key Considerations

  • Personal loans are often unsecured and easier to obtain with an average credit history, typically for small amounts not exceeding $5,000, but with higher interest rates than secured loans.
  • Cash advances are easy to get but come with extremely high interest rates, usually for small amounts, and should only be considered when no alternative ways to get money exist.
  • Student loans, such as Stafford and Perkins loans, are common and offer reasonable interest rates, but can lead to substantial debt for recent graduates.
  • Mortgage loans are typically the biggest loans, secured by the purchased property, and enable individuals to buy homes with structured terms and tax-deductible, fairly low interest rates.
  • Home-equity loans and lines of credit allow homeowners to borrow against their house equity for home additions, improvements, or debt consolidation, with tax-deductible, fairly low interest rates.
  • Small business loans are available from local banks and require more work, often needing a business plan and personal assets as collateral in case the business fails.

Description

Learn about the different types of loans, including car loans, student loans, and home mortgages. Understand what a loan is and how it involves borrowing money from a bank or financial institution and agreeing to pay back the principal amount plus interest.

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