So many times, people run out of money. They require money
urgently for one thing or the other. One of the most convenient
ways to get money is to ask friends and relatives for help. If
you cannot get money this way, you have to look out for an
alternative source. There are many people who have surplus of
money. Such people, called lenders, lend money to those who are
in a need for it. People who take out a loan are called
This service is not free of cost. Borrowers have to repay the
loan along with an additional amount known as interest. The
interest is charged as a certain percentage of the loan amount.
This percentage is known as the rate of interest and depends
upon several factors. The most important factor is the type of
Loans are of two types - secured and unsecured. The rates of
interest on unsecured
loans are higher than the rates on secured loans.
Although unsecured loans carry high rates of interest, yet they
are very popular among borrowers. This is because there is no
need to put up a security to obtain an unsecured loan, whereas
secured loans require a property as a security. Thus, the lender
does not have any claim over the borrower's property in case of
an unsecured loan. Another benefit of an unsecured loan is that
once your loan application gets approved, you get the loan very
There are several methods of repayment of unsecured
loans. You may repay the loan in the form of installments at
regular intervals. Each installment comprises the principal as
well as the interest elements of the loan amount. In another
method of loan repayment, only interest is paid at regular
intervals and the original loan amount is repaid at the end of
the loan period. In a third method, the entire loan amount,
along with its interest, is repaid at the end of the loan
The author is a business writer
specializing in finance and credit products and has written
authoritative articles on the finance industry. He has done his
masters in Business Administration and is currently assisting
Easy-debt-consolidation-Loan as a finance specialist.
How To Get An Auto Loan With Bad Credit?
Copyright 2005 Dean Shainin
You have found the car of your dreams, but you know your credit
is not the greatest. You ask yourself, "How can I get an auto
loan with bad credit?"
You are not alone. Thousands of people ask the same...read more