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4 Types Of Loans You Should Know About

When approaching the bank to apply for a loan, you should be well equipped with the knowledge about the risks involved and which one is best suited for your situation. In this article we have reviewed 4 types of loans you should know about and how you can get the best interest rates.

1.Personal loans

This types of a loan is ideal short-term expense that needs your urgent attention. It can be for renovating your house, buying school uniform or covering medical fees. It's always advised that you must not borrow money to fund an exorbitant lifestyle that you can barely afford - Live within your means. Based on your credit score and results from risk assessments, the bank will determine the right amount to loan to you, interest rates and monthly repayments.

2.Student Loans

If you don't have the funds to finance your tertiary education fees, student loans are designed to help you with that. I know that they are not the most viable option (especially in South Africa) considering the fact that their interest are a lot. As you might have noticed, the National Student Financial Aid Scheme (NSFAS) does not fund some programs especially for private institutions.

3.Home Loan

It's popular amongst people, especially new homeowners that don't have access to capital. The money they will borrow you depends on your monthly income and expenses. A thorough assessment with be conducted to ensure that you are comfortable with the amount and will remain committed to your payment.

4.Vehicle Financing

Most of the time people don't have the money to purchase their vehicles cash. To solve this problem, banks have created an offering to loan money to buyers that will be returned with interests. This is pretty much how banks stay afloat and remain profitable for extended periods of time.

We hope you've found this article useful and informative. If you still need clarity just put your questions on the comments section below, we'd love to hear from you. Hit the follow button and be on the loop with credible and informative journalism that you can trust. 

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