Types of Personal Loans

There are 3 types of personal loans to choose from:

 Installment Loan

You repay the amount borrowed, plus interest, in monthly installments over a predetermined period of time. Installment loans are by far the most common type of loan. Auto loans and home loans are this type.

 Balloon Loan

You make periodic installment payments, with a large "balloon" payment at the end of the term. You need to be sure your income will stay at the same level to afford the balloon payment at the end.

 Single Payment Loan

You repay the entire loan plus interest at a predetermined date in the future. Like the balloon payment, you need to be sure you will have the means to make the payment in the future.