investment
A loan is a financial bridge that connects your current needs or dreams to your future ability to pay, emphasizing the importance of prudent planning and responsible repayment
Types of Loans
Secured Loans: These require collateral, which is an asset such as a house or car that the lender can take possession of if the borrower fails to repay the loan.
Unsecured Loans: These do not require collateral and are given based on the borrower's creditworthiness. Personal loans and credit cards are common examples.
Fixed-Rate Loans: The interest rate remains constant throughout the term of the loan, making it easier for borrowers to predict their future payments.
Variable-Rate Loans: The interest rate can change based on market conditions, which means monthly payments can increase or decrease.