The internet offers individuals a quick and effective method of acquiring a loan without the need to go to a brick and mortar bank. Different types of loans are on offer for the short and the long term. Various websites allow you to find lenders and compare rates.

Types of loans

The need for a loan can be for a variety of reasons. Online loans with monthly payments are often offered by payday loan companies. It’s also possible to apply online directly to a bank or find other sources of finance. You can apply online for different types of loans

  • Payday loans

These loans are often sought as cash advance in the short term. Most often, the amount borrowed has to be repaid within one month or extended until the end of the following month by paying only the interest on the loan. Payday loans are very expensive and have very high-interest rates.

  • Secured loans

Regardless whether you desire a loan for debt consolidation, to purchase a car or for any other reason, secured loans are obtained against a collateral, an asset that acts as a guarantee in case you cannot repay. They are often long-term loans from six months to a couple of years.

  • Unsecured loans

These are offered without collateral, but have very high-interest rates. To obtain a long-term unsecured loan requires a very good credit history and often a steady flow of income

There are also many other types of loans which depends mostly on a variety of conditions, for instance, convertible loans are often offered to businesses. It allows the lender to convert the principal amount into an equity in the borrower’s company. You’ll also find fixed rate loans, installment loans, variable-rate loans etc.

Securing a loan

Payday loan companies such as Maxlend allows you to apply online and have money sent directly to your bank account within an hour. With the many different methods of identification and the advancement of technology, many loans are provided online.

Most often to secure a loan all that is required is a good credit history. Online, you’ll be able to compare different annual percentage rate (APR) and view different types of loans to satisfy your specific need.