What are the Different Types of Loans? | Aspire Money

Types of Loans and the Differences Between Them

In the modern days of the 21st Century, money is a financial burden on many families here in the UK, however there are now more loans than ever available to help alleviate your financial troubles. Here's a breakdown of the types of loans available. 

Personal Loans:

Personal loans are unsecured loans that people can use for an extensive range of purposes. They can be used on everything from paying utility bills and car repairs to covering unexpected payments such as replacing your washing machine, cooker etc. 

A personal loan can be very flexible in terms of repayment amounts and time periods allowing you to pay back your loan in a time frame that is manageable for your individual situation. 

Instant Cash Loans

These are similar to personal loans in that they can be used to cover unexpected bills or allow you to borrow a little extra cash to get you through to your next payday. Just as their name suggests, the main benefit of this type of loan is that the money could be in your bank within hours or even minutes. 

Homeowner Loans:

A homeowner loan is a type of loan that is secured against your property, meaning you're able to borrow larger amounts of money and pay it back over a longer time period. Homeowner loans are often used to pay for home improvements such as a new kitchen or an extension. They are also commonly used for debt consolidation. 

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