The need for money is always associated with man’s everyday activities and as such, it is a likely possibility that some cash cannot be funded by individuals for various reasons. In many cases, people with financial needs that could not be funded by their savings or personal cash rely on loans from banks and financial firms. Loans are made and design to suit and proffer perfect solution to financial needs and requirement of people at a time they need it. There is a different type of loans made to address a need. A student with a need for a loan to go through tertiary education needs a student loan, a payday loan is for individuals seeking a fast loan to fund emergency need, long-term loans are made for people in need of a large sum of money to start a business, buy a car or fund home improvement projects. All types of loan are however classified under the secured and unsecured loans. Secured loans are loans approved after the applicant has agreed to use a property or other asset as collateral for the loan. The said asset will be forfeited if the applicant fails to repay the loan with other charges agreed upon at a set time. Unsecured loans are loans approved without the need for collateral. The unsecured loan requires majorly credit score of individual applicants with other documents for approval. All loans are to be repaid at a specified period of time but interest and perhaps some other fees must
Furthermore, applying for loans means that an individual wants to access a loan from a bank or other lender. This is done by filling some forms in at the bank venue or on the lender’s online platform. Applying for loans require a good knowledge of how loans work in respect to the terms and condition of the loan. Applicants must at first, have all requirements needed for loan approval. For unsecured loans, the applicants need to have a good credit score to serve as a proof that he or she has a good history of loan repayment.