Borrowing any kind of money can be like asking for weapon protection and getting a chainsaw and a bazooka. Sometimes, it can be a bit too much. Sometimes, borrowing is like jumping out of a plane without a parachute and expecting to pay extra fees if the person lands alive.
Fortunately, there are some solid sources on the different kinds of loans and what they encompass. How do personal loans fit into the larger structures of lending? What is a personal loan and, just as importantly, what is it not?
A personal loan is different from a financed loan or a collateral loan. The latter loans have a number of different names, notably bank loan. But, they do not have to work through a big bank. This type of loan is basically anything that has collateral attached...