Welcome to Loaneo

There are various types and formats of Loans available in market. Every individual need is different from other individual, so there are different types of loan for different individual needs. There are many lenders in the market providing custom made loans to borrowers. Initially the borrower receives a sum of money from the lender which they pay back to the lender in installments. Instead of going to banks some people go to these lenders, because they have less rules on loans and lending money to individuals. A loan is a contractual promise of a debtor to repay a sum of money in exchange for the promise of a creditor to give a sum of money. Banks and creditors often provide lines of credit to small and medium enterprises. These are generally defined as a maximum amount of money you can borrow. The credit line, and the sum of the interest rates vary widely from lender to lender and from business to business.

Secured Loans

The Loans which are secured by collateral are secured loans. The lender will have a security interest in your property. If you do not pay the loan back the creditor has the right to seize its collateral. Most lenders will require collateral for a loan and small businesses that do have a security interest in your business and / or personal property.

Unsecured Loans

The Loans which are not secured by collateral are unsecured loans. The creditor is lend money based on your reputation and credibility. An unsecured loan will bring a slight increase in the interest rate in the absence of guarantees. This is how the lender to maintain a cushion against any repayment default. The funds from an unsecured loan can be used for multiple purposes, such as the purchase of a car, debt consolidation, financing of a holiday vacation, education funding, expansion of a business etc etc.