Consumer Loan

Question 1

type of credit provided to a consumer to help them finance only a set of specific expenditures.

Answer 1

Consumer loan

Question 2

These loans do not require collateral and are based solely on the borrower’s creditworthiness. They can be used for various purposes like medical expenses, travel, or debt
consolidation.

Answer 2

Unsecured loans

Question 3

These require collateral, such as a car or savings account. Because they are backed by an asset, they often
come with lower interest rates.

Answer 3

Secured loans

Question 4

are unsecured, which means you don’t need to surrender collateral to get approved. You do, however,
need a good credit standing to increase your chances of
approval.

Answer 4

Personal loans

Question 5

Designed specifically for purchasing vehicles, auto loans are secured by the vehicle itself. The borrower makes monthly payments over a set period, and the lender holds the title until the loan is repaid.

Answer 5

Auto loan

Question 6

Types of Auto Loan
These loans are for purchasing brand-new vehicles. They generally come with lower interest rates compared to loans for used cars.

Answer 6

New car loans

Question 7

Types of Auto Loan
Financing for second-hand or pre-owned vehicles. Interest rates tend to be higher because used cars have a lower resale value.

Answer 7

Used car loans

Question 8

Types of Auto Loan
where the car serves as collateral for the loan. The lender holds the vehicle’s title until the loan is fully paid.

Answer 8

Chattel mortgage