Finance

Different Kinds of Bank Loans

Bank loans facilitate you have regulated borrowed money that can be used for several purposes. When considering taking a loan from columbia bank aberdeen, consider the different borrowing options you can avail of.

Personal loans

Personal loans are typically issued for amounts up to a few thousand dollars with an average tenure of about 5 years. Since you do not have to put up collateral as in the case of a car or home loan, this loan requires you to present income verification. The money procured from these loans can be used for anything.

Credit cards

A Credit card is a way of taking a personal loan from the bank. However, if you repay the amount immediately, you will not be charged any interest. Credit cards have an upper withdrawal limit which is set according to the credit score of the account holder.

Columbia Bank
1154 NJ-34, Aberdeen Township
NJ 07747, United States
Phone: +1 732-203-9880

Credit card cash advances

Anyone who owns a credit card can withdraw cash from ATMs. This is one of the most expensive ways of borrowing money but is also the quickest. The amount of card withdrawn adds up to the credit card balance, requiring month to month interest payment until full repayment.

Home-equity loans

Your home might be completely yours or under the process of loan repayment. In the latter case, you can avail of loans against the amount that you have repaid for the house. This is a risky way of making the most out of a property.

Small business loans

The Small Business Administration (SBA) makes small business loans available through banks. Once the formal business plan has been submitted for review, with the help of a personal guarantee and collateral, anyone can procure this loan. The general tenure of these loans is up to 25 years.

Endnotes

There are many ways of borrowing money from banks. Each meets a different kind of requirement and purpose. Choosing the right loan offer is the first step to putting your future money into the right place.