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Consumer installment loans, including car loans, student loans, and home mortgage loans, are examples of consumer loans. Other examples of consumer loans include certain revolving credit products, such as consumer credit cards and personal lines of credit.
(1) Except as provided in subsection (5), a person may not engage in the business of making consumer loans in any amount and contract for, charge, or receive directly or indirectly on or in connection with any loan any compensation, whether for interest, fees, other consideration, or expense, except as provided in and ...
A consumer loan is a credit type offered to customers to aid them in financing only specific expenditures. Consumer loans are mortgages, credit cards, auto loans, education loans, refinance loans, home equity loans, and personal loans.
What is Consumer Credit? A consumer credit system allows consumers to borrow money or incur debt, and to defer repayment of that money over time. Having credit enables consumers to buy goods or assets without having to pay for them in cash at the time of purchase.
A consumer loan provides structure and predictability in your finances and you know exactly how much you need to pay back each month. Lower interest than credit card debt. A consumer loan enables you to refinance smaller and more expensive loans.
Consumer loans are structured in one of two key ways: either as a fixed loan that is repaid over a set period of time or as a revolving credit account that you can use at your own discretion. Closed loans are structured with a fixed interest rate, monthly payment amount, and repayment term.
The repayment period of a mortgage is longer ? up to 30 years. A consumer loan usually has a term of a few months to 5 years. But both loans can be repaid prematurely. Usually, monthly mortgage payments are lower than for a consumer loan, because of the longer repayment schedule.
In other words, a consumer loan is any type of loan made to a consumer by a creditor. The loan can be secured (backed by the assets of the borrower) or unsecured (not backed by the assets of the borrower).