Bank Loans

Bank Loans


Types of Personal Bank Loans


These may be troubled times but there’s hope for us, yet.  There are options open for us when it comes to getting financial help from qualified institutions.  Before we fall into despair over our financial straits, let us carefully study our options and see which ones are the most viable at this point in time.


There are bank loans that we can check out where we could get some financial assistance for our immediate needs.  These are what we call personal bank loans.  When considering this type of loan, we have two other options:  non-collateral and collateral-based.


 Collateral Bank Loans 


To put it another way, this type of loan is aptly termed a secured bank loan.  We will have to offer some sort of security to the bank, against the loan we intend to make.  This may come in the form of our current assets such as cars or other types of vehicles; real property and other assets of good-standing value.


The collateral ensures the bank that we will be in good standing regarding our agreed terms on the loan.  A huge factor that we should consider when thinking about getting this type of bank loan is that these secured loans have a lower interest rate as compared to a non-collateral loan.


If we are looking at several years’ worth of paying off our loan, this type of loan could save us huge bucks in interest rates.


Non-Collateral Bank Loans


Based on the above premises, a non-collateral bank loan is what banks would call an unsecured loan.   While this type of loan does not tie-up any of your assets while the loan agreement is still in effect, a non-collateral bank loan is harder to get for some people.


 Before we can be considered for an unsecured bank loan, we first have to establish to the banking institution that we are in good credit standing.  This means that we have a clean record when it comes to paying our bills, mortgages, credit cards and such.

We also have to consider the interest rate attached to unsecured loans.  Typically, interest rates for this type of loan are higher, hence; if we consider the long-term effect of an unsecured bank loan, we may be wiser to get either a secured bank loan or a short-term collateral loan.  The latter is basically what we do when we pawn something in a legitimate pawnshop.


 For a better understanding of what type of loan will be best for us, we should discuss these with our trusted bank officer so we can study all options.