Moneylenders like QV Credit are a type of money lending service that provides financial assistance to those who need money. Financial institutions like pawnshops, banks, and credit unions also offer money loans, but moneylenders can be more flexible with their terms and conditions for getting a loan.
This article will thoroughly discuss what loans, the different types of money lending services, and how they're different from other types of financial institutions that offer loan services to customers are.
What is a Loan?
First, You should know what loans are in general. A loan is a type of financial assistance that people or companies can get from banks, credit unions, money lenders, etc., with the condition that they will pay back the money after an agreed period of time with interest fees added to it.
People/businesses take out loans for different reasons, such as buying large ticket items like homes, cars or appliances; financing home renovations; paying off other debts acquired through credit cards or unpaid bills; starting up their own small business ventures; going on vacation/holiday trips.
What are the Types of Loans?
Moneylenders typically offer short-term finance options compared to long term repayment plans offered by banks and credit unions. The money lending services offered by moneylenders are typically more flexible with their terms and conditions for getting a loan which makes them stand out from other types of money lenders like banks, credit unions, finance companies etc. Here is a helpful list of the different types of loans that you can avail of:
Secured Loans
A secured loan is a type of money lending service that requires the borrower to provide collateral/security in order to get money. The security can be anything from property, money, stocks and shares or other valuables, which the lender will then hold until the repayment term has been met. In this case, banks are an example of institutions that offers secured loans because they require borrowers to put up properties as collateral for their moneylender services.
Unsecured Loans
Unsecured means that the borrower does not need any collateral in order to get approved for an unsecured loan. An example is when you apply for a bank loan without having anything valuable enough they could use as security if you fail to pay back your loan.
Payday Loan
A payday loan is a money lent to borrowers with the condition that they will pay back the money once their next paycheck has arrived.
Wedding Loan
A wedding loan is a money that you can get from banks or moneylenders to finance your wedding. These loans are given out at a low interest rate and may require collateral such as property, stocks, shares etc.
Car Loan
When you need cash to buy a car, you can go to moneylenders for this type of loan. Depending on what your preferences are and your budget, you will have the option of either paying upfront or taking out an instalment plan with monthly fee instalment payments.
Renovation Loan
Another money lending service moneylenders offer renovation loans. This type of money lending option allows you to finance your home renovations or repairs.
Mortgage Loan
A mortgage is typically taken by people who are buying their first house, which means that it's given at a relatively high interest rate because there's no collateral involved in getting approved. This type of money lending service also comes with long term repayment plans for borrowers meaning they'll pay back the money over several years until they've finally settled all fees owed against their home or property purchase.
Personal Loan
A personal loan is a money that you can get from moneylenders to use for personal expenses. You may take out a personal loan if you need money for something like paying off your credit card bills or going on a holiday trip.
Business Loan
You can get a business loan from money lenders for starting up your own small business venture like opening up an online store, buying equipment for manufacturing etc. These types of money lending are often short term and will require you to pay back the money plus interest fees within a certain period of time.
What are the Financial Institutions to Get a Loan?
When you need money for emergencies or to finance your business, moneylenders and other financial institutions can offer you money lending services. Here is an informative list of different types of financial institutions that offers loans:
Moneylenders
Moneylenders are financial institutions that provide moneylending services for personal or business purposes. They are typically focused on short-term loans and providing money within a day or two of the application being approved.
Banks
A bank is an example of a type of lender that offers short term loans compared to money lenders who offer options that require more flexible repayment terms with long-term plans. Banks typically give out personal loans, but they're not as easy to get approved if you have bad credit, such as overdue bills or unpaid debts. The reason for this is because these things make it harder for them to trust borrowers in paying back their money lending services which means even low-interest rates might be too high for your budget.
Credit Unions
Unlike money lenders, credit unions are not-for-profit business entities. Instead, they're owned and controlled by their members. Credit unions provide loan services to customers who need money at competitive rates, which is usually lower than what banks offer because of the different costs involved in running a money lending service like setting up branches, hiring employees etc.
