Loan payments
Various loan payment options
People take different types of loans, some take it for refinancing, some take it for consolidating, some take it for buying new house, and some take it for education whereas some take it to fulfill their personal needs.
With a zest for living a good lifestyle and managing new technology gadgets, one finds no option but to go for a loan. Loans can be of various types, but most common being are home loans, personal loans, education loans, business loans, and car or auto loan. So examples of various types of loan payments can be explained below:
Business loan:
To start up a small, medium business including purchase, refinance, expansion of business, development loans or any type of personal investment, but business loans are available at a very competitive interest rate from leading commercial loan lenders, but business loans can be offered at various rates depending on the status and length of the term.
Car loans:
The hire purchase and the manufacturers scheme are the main types of car loans available today in the market. In case of hire purchase
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car finance is arranged by the car dealerships. A manufacturers scheme is a type of loan which is put together and advertised by the car manufacturer can be arranged directly with them or local dealer. You will not be owner of the vehicle until you repay the loan payments in full.
Home loan:
A secured loan on your home is called a home loan. You can unlock the value tied up in your property with a secured home loan. Home loans can be used for any purpose such as new car, luxury holiday.
Personal loan:
Personal loans are of two types: secured personal loans and unsecured personal loan, a loan which is secured against the property is secured personal loan. It is suitable when you raise a large amount or you have a poor credit history. Whereas unsecured personal loans are, when a lender has no claim on loan owners property when they fail to repay it. Here repayment period can range from anywhere between 6 months to the term of 10 years.
Taking a loan is an easy process but the options to make payment for the same are little different. But you should keep in mind that its important to take the time to confirm whether or not certain payment options will be available from your lender before finalizing your particular loan application. Here are some of the most common types of loan payment options:
Direct payments:
In this type of direct loan payments you take the money for your loan payment to cahier at lenders choice, or you can mail in the payment straight away to lenders address. The most common forms of direct payments options are cash, cheques or money orders. The direct payment options are straight in nature and they work like payments that are made on bill or in that matter debt.
Automatic payments:
The automatic payment option is directly set up with the borrowers chequeing account or his bank account to process the loan payment automatically on a specified day if the month. Automatic payment option requires little or no communication with the borrower of the loan. But it is important for a borrower ton accrue payment for the loan into the account before that particular day, otherwise the borrower will be entitled to late payment fees to overdraft and insufficient funds fines from both bank and lender.
Night deposits:
In this option many automated teller machines will accept payments from the bank or financial institutions that owns them, but while this is technically a form of direct payment not all lenders and banks have an option of night deposit payment, but there can be many reasons for lenders and banks not opting for this option, for example as some simply do not have a drop box for the payments to be placed in, whereas other lenders and banks shy away from night deposits for security issues.
Wire transfers:
In this payment option online lenders in particular tend to be fond of, since it allows the borrowers who do not want to use automatic payment or electronic loan payments option, but still do business with the lender, even though the lender doesnt have office near the borrower. Wire transfers are not as popular as they were used to be earlier but they are still used by many lenders as an easy way to receive payments from those they provide loans for. But wire transfers are still more secure and faster than sending payments by mail
Electronic payment:
In the electronic payment option, payment is usually processed just the same as electronic cheques or debit card purchases and they draw funds directly from chequeing or savings account. Electronic payments are very popular with the online lenders as they allow individuals to make payments from the comfort of their home over the internet.
When you make all of your loan payments on time, your credit will remain as it is or even improve, a few late payments may not have a negative impact but you never know .it is advisable to make all payments on time the earlier it is, the better it is.. So if you dont make payments on time it is possible that your relationship with your lender turns sour. It is always advisable to stay in good terms with your financial lender, whether the lender is your local bank or an online lender. So dont ruin your chances of being able to obtain finance later in your life, by making number of late payments on your loan. Making on time loan payments are often easier said than done. you have to make sure that before you obtain the loan, you can afford to make payments, but if you know ahead of time that you may be unable to make the monthly payments, it is advisable to contact your financial lender, so it is likely that your lender may help you out with a alternative payment option.
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