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You get money from the lender to build your dream. Getting loan is not an easy process. You must be capable to repay your loan on time. The lender will check your capacity to repay the amount gave to you and will have a property or any other materialistic wealth worthy to you as leverage for you to pay it back.

Loans can be given to anybody to individuals, companies or as a group. Loans can be divided into three

SECURED AND UNSECURED LOANS:

A secured loan is always backed by some collateral. This happens in financial institutions. When you get a loan for financial support the financial institutions will requires you to handover the original documents that provides that you are the owner of a certain property. This is their leverage for you to pay the loan back.

Apart from property other asserts that can be claimed as collateral are the stocks, bonds etc. Secured loans can be used to get a large amount of money to fulfill your dream. They hold your asserts bas a form of guarantee

These have few limitations too. As per your capacity the loan is provided.  It includes low interest rates, borrowing limits according to your financial status. No matter what you will get a good sum of money in secured loans

In unsecured loans you need not provide any documents as property or stock to the lender. Rather the lender will check your financial capacity and he will decide whether to lend you a loan or not.

OPEN END AND CLOSE END LOANS:

Open end loans are quite simple. The borrower has the freedom to get the money from the lender again and again. But again, it’s up to the lender to decide whether he wants to lend you money. It’s with few restrictions. Credit cards are an example of open-end loans. On your financial status the lender decides.

Close end loans are quite the opposite. You don’t get the freedom to borrow the money over and over. If you want more money you need to borrow it as a separate loan and the process starts from the scratch.

CONVENTIONAL LOANS:

Conventional loans are applied to a mortgage. A conventional mortgage or conventional loan is not secured or given by a government entity. You get the loan through a private lender.

To know more about the types of loans we offer, visit us at www.repcohome.com. If you are looking for a loan to buy a home or for construction loan to build a new home mail us at [email protected].