What is Consumer Financing?
Consumer financing provides individuals the necessary financing for personal purchases ranging from buying a car, shopping purchases to buying a house. Most people don’t normally get access of capital through equity markets so they would normally get access to debt finance through the established financial institutions including banks, credit union, insurance companies etc. This debt is usually in the form of a credit card or loan.
What are the benefits of getting finance?
A loan gives you the money you need to pay for something big like a house, a car, college tuition, or major home repairs when you don't have the cash to cover the purchase. While small purchases can be paid for in advance with a credit card. Most people could not afford to do these things without finance.
Types of financing options for Consumers
• Home loans
• Student loans
• Car loans
• Personal Loans
• Credit Card
• Debt Consolidation
What is a home loan
A home loan (also called a mortgage) is a loan agreement that enables a person to borrow money to buy a house or other property. The property is used as security for the loan. The lender may take possession of the property if the loan cannot be repaid. A person may obtain a mortgage any financial institution that offers. A standard loan includes a Principal (unpaid loan amount) and interest over a 25 year period. Depending on the loan agreement, the home loan may come at either a variable or fix interest amount.
As you pay off the loan initially a large portion of your loan repayment will go towards the interest. However as the borrower pays off the loan, more of the each monthly payment goes to the principal and less towards the interest eventually payin ...