The loans are available easily in the United States. In spite of this, the borrowers require help throughout the loan decision because the transparency and morality arebreached by evil lenders and fraudsters. There are all chances of wrong practices in the market and knowing off the market helps a lot to borrowers. There is nothing to worry about because we have created this platform to whisper in your ears every time there are bumps ahead in loan decisions.
What are loans?
The loans are financial responsibilities of the borrower taken for balancing the fund requirements for specified purposes. The requirements of funds can be for buying house, car etc. or supporting the education, paying off heavy medical bills, travelling abroad or study abroad, or sometimes for the business purpose. The nature of loans depends on the size, shape and time of loan requirements. Those who receive the loans are called borrowers and those who provide loans are referred as lenders.
What are the types of loans?
There are generally two types of loans: secured and unsecured loans.
The secured loans are loan proceeds provided against the security offered by the borrower. The technical term for security is lien or collaterals. The personal property which is lien is governed under the Uniform Commercial Code(UCC). Under this code, the administration process and forms are prescribed through which the interests of the lenders are secured legally. The examples of the secured loans can be housing loan (known as mortgage), car loans, etc. The unsecured loans are issued without any security from the borrowers. The medical bills, gas or electricity bills, credit card bills, payday loans etc. are unsecured debts. The unsecured loans are generally of short period and for nominal amounts. They are qualified for bankruptcy in US once they cross $10000 limit.
What are the benefits of loans?
Following are the benefits of loans:
- The borrowers get the funds easily for their requirements.
- The borrowers can get cheaper rates because the lenders are ready to get involved in the loan business.
- The lenders receive interest rates higher than government securities rates prevailing in the US decided mutually with borrowers.
- Loans are backed by securities that can be sold in case of borrowers make defaults in the payment.
- The fair trade practices of loans are protected by the US laws.
- The complete application is online and therefore no extra costs and processing will be fast all most in all types of loans.
- The personal data of borrower and lender is safe and secure because the lenders use the dynamic technology to ensure it.
What are loan abuses?
The parties of the loan try to claim their own interests in unlawful manner and even at the cost or unwell-being of other party. These are called abuses. The abuse may take place either by raising the interest rates of loan, writing legal hidden clauses in the agreement not expressed to the party, fake lenders or borrowers or sometimes by providing more and more loan so that the borrower fall in debts and thereby increasing the income through late interest rates.
What are taxes?
The taxes are responsibilities of citizens towards the services availed from government. The taxes are governed by the respective laws and forms the constitutional rights of the collecting government. Interest or principal payments for loan taken are allowed as deduction from the tax calculation.