Present in the global world banks offered so many types of loans. Banks offered many types of loans like individuals loans, Education loans, home loans, Small scare industry loans, and car loans. Some types of loans include fixed-rate, variable-rate, installment, secured, unsecured and convertible. Every loan has unique repayment terms, and understanding those terms can make choosing the right loan easier.
Fixed-rate loans mean, the loan interest rate is fixed here.some of the year the interest rate fixed in that loans
Variable Rate Loans
Variable-rate loans have interest rates that fluctuate depending on the market rate or “prime” rate. This type of variable interest rate, the amount you pay on your home loan, car loan or student loan can vary each month.
An installment loan is one that is repaid in equal amounts over a certain period of time. Repayment periods for installment loans can range from six months to 30 years. Home loan or auto loan can be considered a type of installment loan. Installment loans are very specific repayment terms, including a starting date, an ending date, and the amount of interest you will pay over the life of the loan.
Secured loans mean our own property secure for that loans. Then complete the loan time you did not pay the loan then banks occupy the that property
Without any security, these loans are possible to the customers.
Convertible Rate Loans
Convertible Rate Loans are some times change the interest rate upon on the marketing prices.