When you hear the term guaranteed loan, most likely you think of a loan that is guaranteed to be issued. Or maybe you think of a loan that is guaranteed to be paid in full. Depending on your perspective, a guaranteed loan can mean different things. In truth, there are several types of guaranteed loans, some more common than others.
Personal loans are a common type of guaranteed loan. They are considered guaranteed because they are almost always granted. They are really easy to get, even for people with poor credit. Guaranteed personal loans don't require a credit check or collateral most of the time. Since there is very little personal information required to apply, there is not a lot of paperwork to fill out. The turnaround time for processing of the loan usually only takes a day or two.
Another kind of guaranteed loan is a government guaranteed loan. There are a couple types of loans that fall under the category of a government guaranteed loan. The government guarantee simply means that the government backs the loan. This takes away the risk to the lender since the government is shouldering the responsibility for any default on the loan.
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.
The guaranteed business loan is another type of loan that falls under the umbrella of government guaranteed loans. It can be really difficult for someone who has a new business idea to get financial backing to start the business. Lenders see them as very high risk. With government business loans, the risk is assumed by the government. If the borrower defaults on the loan, the government will continue to pay the lender so they are not out any money. Thanks to these kinds of loans, lenders are more willing to take a risk on a person with a new business idea.
Generally, business loans also offer repayment schedules of about ten years. This is beneficial to a start-up company since it can take at least two years to start making a profit in most cases. Government guaranteed business loans help make small businesses a reality for many people. So whether you need a short-term loan quickly, funding to complete your higher education or assistance to start a business, there may be a guaranteed loan option for you.
Personal loans are a common type of guaranteed loan. They are considered guaranteed because they are almost always granted. They are really easy to get, even for people with poor credit. Guaranteed personal loans don't require a credit check or collateral most of the time. Since there is very little personal information required to apply, there is not a lot of paperwork to fill out. The turnaround time for processing of the loan usually only takes a day or two.
Another kind of guaranteed loan is a government guaranteed loan. There are a couple types of loans that fall under the category of a government guaranteed loan. The government guarantee simply means that the government backs the loan. This takes away the risk to the lender since the government is shouldering the responsibility for any default on the loan.
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.
The guaranteed business loan is another type of loan that falls under the umbrella of government guaranteed loans. It can be really difficult for someone who has a new business idea to get financial backing to start the business. Lenders see them as very high risk. With government business loans, the risk is assumed by the government. If the borrower defaults on the loan, the government will continue to pay the lender so they are not out any money. Thanks to these kinds of loans, lenders are more willing to take a risk on a person with a new business idea.
Generally, business loans also offer repayment schedules of about ten years. This is beneficial to a start-up company since it can take at least two years to start making a profit in most cases. Government guaranteed business loans help make small businesses a reality for many people. So whether you need a short-term loan quickly, funding to complete your higher education or assistance to start a business, there may be a guaranteed loan option for you.
About the Author:
Trinity helps people to learn how to find guaranteed loans, and about personal loans with bad credit.
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