Personal loans are consumer lending products that provide you with a lump sum of cash to be repaid under terms and conditions of a loan agreement. Here are 12 different types of loans that consumers can take out for personal reasons.
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1. Unsecured Personal Loans
An unsecured personal loan is a financial lending product that provides borrowers with a lump sum of money to be repaid over a specified term without any requirement for the borrower to provide any assets as collateral.
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2. Secured Personal Loans
Secured personal loans are financial lending products that require borrowers to offer collateral as a condition of receiving a lump sum of money to be repaid over a specified term. Collateral could be any tangible asset you own, such as a vehicle or residential property.
The major difference between unsecured vs secured loans is the latter requires collateral as a condition of approval.
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3. Fixed-Rate Loans
Fixed-rate personal loans are financial lending products that provide borrowers with a lump sum of money to be repaid over a period of time under a fixed rate of interest in addition to any outstanding principal payments. The fixed interest rate will never change during the life of the fixed-rate personal loan.
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4. Variable-Rate Loans
Variable-rate personal loans are financial lending products that provide borrowers with a lump sum of money to be repaid over a period of time under a rate of interest that may change during the life of the loan based upon market conditions.
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5. Debt Consolidation Loans
Debt consolidation loans are personal loans that allow consumers to borrow a lump sum of money to help pay down other debts. For example, consumers with large credit card balances comprising principal and high levels of accrued interest may consider a debt consolidation loan to simplify their debt burden and monthly repayment obligations.
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6. Co-Signed Loans
A personal loan with a cosigner is a financial lending product in which an applicant applies for a loan with the assistance of a cosigner who shares the financial responsibility of repaying the loan as a condition of approval.
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7. Personal Lines of Credit
A personal line of credit is a revolving lending product that may allow you to borrow a certain amount of funds for personal spending purposes. Personal lines of credit give borrowers versatile financing comparable to a traditional personal loan but are constrained by a defined monetary limit on how much funds the borrower can access and spend.
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8. Vacation Loans
Vacation loans are personal loans permitting the borrower to spend the money on anything related to a vacation. Borrowers can obtain unsecured vacation loans to finance a major getaway.
Vacation loans provide the borrower with a lump sum of money to be repaid over a period of time under the terms and conditions of a loan agreement.
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9. Wedding Loans
Wedding loans are personal loans that may allow borrowers to finance any expenses related to a nuptial ceremony. Such expenses may include engagement rings, wedding bands, catering, photography and honeymoons.
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10. Revolving Credit
Revolving credit is any consumer lending product that allows you to borrow money or make purchases through accessible credit that is restricted by a borrowing or spending limit.
Revolving credit includes credit cards, personal lines of credit, and home equity lines of credit, and revolving credit replenishes automatically whenever you make repayments on the account.
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11. Installment Loans
An installment loan is a lump sum of borrowed money that consumers may repay over time with a fixed number of scheduled payments.
Installment loans can include personal loans, student loans, auto loans, mortgages and home improvement loans.
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12. Payday Loans
Payday loans are quick personal loans that can provide consumers with small sums of cash on short notice. Borrowers are typically expected to repay these loans in a matter of weeks or months, and payday loans may feature high fees ranging from $10 to $30 for every $100 borrowed.
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The Takeaway
Lenders may disburse personal loans for a wide range of consumer needs. From weddings and vacations to debt consolidation and financing for unplanned expenses, borrowers may use personal loans for almost any personal purpose.
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The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.SoFi Loan Products SoFi loans are originated by SoFi Lending Corp (dba SoFi), a lender licensed by the Department of Business Oversight under the California Financing Law, license # 6054612; NMLS # 1121636. For additional product-specific legal and licensing information, see SoFi.com/legal.
Lantern by SoFi:
This Lantern website is owned by SoFi Lending Corp., a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license number 6054612; NMLS number 1121636. (www.nmlsconsumeraccess.org)
All rates, fees, and terms are presented without guarantee and are subject to change pursuant to each provider’s discretion. There is no guarantee you will be approved or qualify for the advertised rates, fees, or terms presented. The actual terms you may receive depends on the things like benefits requested, your credit score, usage, history and other factors.
*Check your rate: To check the rates and terms you qualify for, Lantern and/or its network lenders conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender(s) you choose will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
All loan terms, including interest rate, and Annual Percentage Rate (APR), and monthly payments shown on this website are from lenders and are estimates based upon the limited information you provided and are for information purposes only. Estimated APR includes all applicable fees as required under the Truth in Lending Act. The actual loan terms you receive, including APR, will depend on the lender you select, their underwriting criteria, and your personal financial factors. The loan terms and rates presented are provided by the lenders and not by SoFi Lending Corp. or Lantern. Please review each lender’s Terms and Conditions for additional details.
Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website on credit (https://www.consumer.ftc.gov/topics/credit-and-loans)
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Personal Loan:
SoFi Lending Corp. (“SoFi”) operates this Personal Loan product in cooperation with Even Financial Corp. (“Even”). If you submit a loan inquiry, SoFi will deliver your information to Even, and Even will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lenders/partners receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender’s and/or partner’s conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Even, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Even’s Licenses and Disclosures, Terms of Service, and Privacy Policy.
Personal loan offers provided to customers on Lantern do not exceed 35.99% APR. An example of total amount paid on a personal loan of $10,000 for a term of 36 months at a rate of 10% would be equivalent to $11,616.12 over the 36 month life of the loan.
Student Loan Refinance:
SoFi Lending Corp. (“SoFi”) operates this Student Loan Refinance product in cooperation with Even Financial Corp. (“Even”). If you submit a loan inquiry, SoFi will deliver your information to Even, and Even will deliver to its network of lenders/partners to review to determine if you are eligible for pre-qualified or pre-approved offers. The lender’s receiving your information will also obtain your credit information from a credit reporting agency. If you meet one or more lender’s and/or partner’s conditions for eligibility, pre-qualified and pre-approved offers from one or more lenders/partners will be presented to you here on the Lantern website. More information about Even, the process, and its lenders/partners is described on the loan inquiry form you will reach by visiting our Personal Loans page as well as our Student Loan Refinance page. Click to learn more about Even’s Licenses and Disclosures, Terms of Service, and Privacy Policy.
Student loan refinance loans offered through Lantern are private loans and do not have the debt forgiveness or repayment options that the federal loan program offers, or that may become available, including Income Based Repayment or Income Contingent Repayment or Pay as you Earn (PAYE).
Notice: Recent legislative changes have suspended all federal student loan payments and waived interest charges on federally held loans until 05/01/22. Please carefully consider these changes before refinancing federally held loans, as in doing so you will no longer qualify for these changes or other future benefits applicable to federally held loans.
Auto Loan Refinance:
Automobile refinancing loan information presented on this Lantern website is from Caribou. Auto loan refinance information presented on this Lantern site is indicative and subject to you fulfilling the lender’s requirements, including: you must meet the lender’s credit standards, the loan amount must be at least $10,000, and the vehicle is no more than 10 years old with odometer reading of no more than 125,000 miles. Loan rates and terms as presented on this Lantern site are subject to change when you reach the lender and may depend on your creditworthiness. Additional terms and conditions may apply and all terms may vary by your state of residence.
Secured Lending Disclosure:
Terms, conditions, state restrictions, and minimum loan amounts apply. Before you apply for a secured loan, we encourage you to carefully consider whether this loan type is the right choice for you. If you can’t make your payments on a secured personal loan, you could end up losing the assets you provided for collateral. Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on the ability to meet underwriting requirements (including, but not limited to, a responsible credit history, sufficient income after monthly expenses, and availability of collateral) that will vary by lender.
Life Insurance:
Information about insurance is provided on Lantern by SoFi Life Insurance Agency, LLC. Click here to view our licenses.
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