Home Improvement Loans
As the name suggests, home improvement loans are where you ask a lender to lend you money to improve your home. In most cases a home improvement loan is granted on the condition that you have to give the lender a second rank mortgage on your home. As such, the loan amount can rarely exceed the valuation price of your home - including the increased value after the improvements have been made. Again, home improvement loans usually need to be paid by monthly installments; however, balloon (or bullet as they're also know), one-off, payments are also sometimes accepted.
Education Loans
Education loans are where you borrow money to to pursue your higher studies. One big difference between an education loan and any other type of loan is that most education loans, although given by a financial institution, are underwritten by the government. Consequently, the interest rate on education loans (also known as "student loans") is usually very low.
Holiday Loans
These loans provide you extra cash for your holiday trip to meet out expenses on hotel room, shopping, travel expenses etc. if you do not have sufficient amount of money for the holiday trip. Cheap holiday loans are available in two forms, secured and unsecured form. These days it is even possible to go to your bank and ask them to borrow money so that you can go away on holiday! As you'll be using the money to go on holiday, this type of loan is unsecured. Consequently, interest rates are high. It is not really a recommended way of paying for your holiday, but nice to know it's out there if you need it! To get these loans, you are required to provide a collateral security against the borrowed amount. On the contrary, if you are going for the unsecured form, there is no need pledging any collateral. But the rate of interest may be higher than the secured loan.
Debt Consolidation Loans
Unfortunately debt consolidation loans are becoming more and more popular in these days. A debt consolidation loan is where you have too much debt on store cards and credit cards and you need to borrow money to pay these all off and consolidate them into one big debt. The advantages of doing this are two-fold: (i) hopefully you'll lower the borrowing interest rate; and (ii) you only have to deal with one creditor.
Having decided upon the type of loan you want, all you need to do now is to ask your financial institution to approve the loan - Good Luck!
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