The Most Common Types of Guaranteed Loans
The term guaranteed loan might mean different things to different people. It might mean that if you apply for a loan, you are guaranteed to get one. Or maybe it means that if you borrow money, it is guaranteed you will pay it back. The reality is that there are a few different common types of guaranteed loans.
One common type of guaranteed loan is a personal loan. Sometimes called guaranteed loans, they are quick and easy to get. Even if you have bad credit, you will probably still be able to qualify for the loan. They don't require any collateral because they are usually only given in smaller amounts and for a short period of time. Once you apply for the loan, you will usually have the money in your hands within one day.
Government guaranteed loans are another kind of loan. Within the umbrella of government guaranteed loans, there are a few different kinds of loans. The title of the loan comes from the fact that the government is backing up the loan. Lenders don't have to shoulder the responsibility of the loan since the government will continue to pay on any defaulted loans.
Student loans are one type of loan that falls under the umbrella of a government guaranteed loan. The government issues and backs loans such as the Stafford loan and the Perkins loan. There are other loans offered by outside lenders which are backed by the government. They are often easier to get since the lender is not worried about taking on the risk of someone with little or no credit history. Most of these student loans also have lower interest rates than loans that are not guaranteed by the government.
For most lenders, it is just considered too risky to lend money to someone for a new business. Especially in today's economy, there are just too big of a chance that the business will fail leaving the borrower unable to pay back the lender. Lenders wouldn't be willing to take the risk without the government backing the loan. With the government business loan, there are more opportunities for people with a dream to make the dream a reality and become a business owner.
So no matter what your needs are, there are several different kinds of guaranteed loans available to help meet those needs.
One common type of guaranteed loan is a personal loan. Sometimes called guaranteed loans, they are quick and easy to get. Even if you have bad credit, you will probably still be able to qualify for the loan. They don't require any collateral because they are usually only given in smaller amounts and for a short period of time. Once you apply for the loan, you will usually have the money in your hands within one day.
Government guaranteed loans are another kind of loan. Within the umbrella of government guaranteed loans, there are a few different kinds of loans. The title of the loan comes from the fact that the government is backing up the loan. Lenders don't have to shoulder the responsibility of the loan since the government will continue to pay on any defaulted loans.
Student loans are one type of loan that falls under the umbrella of a government guaranteed loan. The government issues and backs loans such as the Stafford loan and the Perkins loan. There are other loans offered by outside lenders which are backed by the government. They are often easier to get since the lender is not worried about taking on the risk of someone with little or no credit history. Most of these student loans also have lower interest rates than loans that are not guaranteed by the government.
For most lenders, it is just considered too risky to lend money to someone for a new business. Especially in today's economy, there are just too big of a chance that the business will fail leaving the borrower unable to pay back the lender. Lenders wouldn't be willing to take the risk without the government backing the loan. With the government business loan, there are more opportunities for people with a dream to make the dream a reality and become a business owner.
So no matter what your needs are, there are several different kinds of guaranteed loans available to help meet those needs.
About the Author:
Trinity helps people to learn about student loans, how to find a guaranteed loan, and about personal loans for people with bad credit.
posted by Credit Counseling at
4:53 PM
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