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Lifestyle/ 12th September 2021

Different Kinds of Loans Explained

Elderly MoneyShop gentlemen feeling confident about getting a loan.

Loan uses can vary, ranging from loans that help you pay off your school fees, to loans that help you purchase a vehicle. They also vary in repayment times and urgency; easy cash loans help you immediately pay off an urgent service like a car fix and can be repaid by the next payday, while a mortgage loan allows you to purchase a house and repay it within 30 years.

Among all these, there are a few types of loans that are the most common. Find out more about them below:

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Car Loans

Waiting for your savings to reach the amount you need to purchase a vehicle can be extremely inconvenient if you need a vehicle immediately to get to work or to make weekend visits to family out of town. A car loan helps you purchase a car upfront while giving you a reasonable timeframe to make repayments. This type of loan is also convenient if you have a damaged uninsured car, and don’t have the budget to cover repairs.

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Emergency Loan

An emergency loan is a fast cash loan that helps you deal with a costly problem immediately, allowing you time to repay it later. This loan comes in handy when you need to pay a costly service to fix an urgent problem like hiring a plumber to fix a broken shower. It helps you address unexpected expenses like hospital stays, roof repairs, and funeral services.

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Debt Consolidation Loan

A debt consolidation loan allows you to efficiently pay off many different debts with one regular repayment, so that you don’t become overwhelmed by separate payments. Under a consolidation loan, all debts are placed under the same interest rate and charged at a much lower rate than each individual loan.

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Wedding Loans

Planning and hosting a wedding can be extremely stressful with so much attention to detail required, and so many different costs, from catering to buying a wedding dress. Wedding loans help families celebrate one of the most important milestones in a person’s life, without having to endure the mental stress of funding the event.

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Holiday Loans

When you suddenly have the time to travel but not the budget, then a holiday loan comes in handy! Interest rates are typically fixed for holiday loans, making it a comprehensive way of financing your travel and holiday.

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Unsecured Loans

An unsecured loan doesn’t require collateral and is approved based on creditworthiness. Collateral used for security often includes high value assets, such as land or vehicles, so when you don’t need to secure a loan with an asset like this, it’s an unsecured loan. If you’re looking for fast cash, unsecured loans are generally the best bet.

Need a loan without the stress?

MoneyShop has assisted thousands of Kiwis with their finances since 1993, with four branches in Auckland (Otahuhu, Manukau, Henderson, Takanini and Waipapa) and one in Northland. We offer a variety of personal loans, including fast and easy loans between $200 and $20,000 available within as few as two hours. You can visit our website to apply for a loan online by clicking here.