Types of loans

There are many types of loans and credit available. There are also different types of companies that offer loans. The list below gives some examples:

• Loans offered by banks:
• Bank overdraft
• Revolving credit and
• Bank loans (this would include student loans and business loans).
  • A Hire Purchase agreement (also known as HP) is a type of loan that shops which sell expensive goods offer. Many furniture stores offer HP loans.
  • Car loans (also called vehicle finance) are offered by banks. The car dealer normally arranges the loan with the bank on your behalf, or helps you to arrange a loan.
  • Home loans (also called mortgage loans or bonds) are offered by banks or companies that specialise in home loans.
  • Retail credit is offered by retail stores like clothing shops or home stores. You normally open an account with such a store.