What are the types of loan available at banks?

Before reading this post i.e. the types of loans available at banks, if you need to understand What is a loan? Definition and Concepts.

Although generally differentiated only between personal loans and mortgages, often also the following types of loans are distinguished:

Consumer loans

These types of loans are often used to finance durable consumer goods character such as a car, a motorcycle, furniture, appliances, etc., and a not very high level.

Personal loans

This kind of loan is generally used to finance specific needs at a given time and a small amount. It is very similar to consumer lending although in this case is used to pay for travel, a wedding, etc .. that is, intangible or perishable goods.

Student loans

These types of loans are much more used in countries like the US, the UK, and other European states. In Spain, they are being increasingly used, among other factors, because financial institutions improve and expand their offerings year after year. It is aimed at students loans to finance college tuition, graduate school or study stays abroad. The costs are usually a little cheaper than personal loans.

Mortgage loans

The mortgage loan is characterized in that, apart from a personal guarantee is offered as security for payment a “security ‘consisting of a mortgage of immovable property. Failure to repay the loan the bank would become the owner of the house.

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