Common loan types explored.

Secured or Unsecured Installment Loan:

Definition;

A loan that is made with or without collateral where the borrower makes consistent payment amounts throughout the term of the loan. The amount borrowed plus costs are divided by a number of equal payments making the payments a fraction of the amount owed but paying the complete amount owed by the last scheduled payment.

We found the majority of loans at The Loan Factory are regular installment loans that allow you to pay your loan off in 7 to 12 months. Available payment frequency is tailored to coincide with your pay schedule for convenience, usually bi-weekly, semi-monthly, or monthly.

Title Loan:

Definition;

A loan secured with an Auto Title that is obtained under the agreement that it will be paid off within a term between 14 days and no longer then 31 days.

The Loan Factory does not offer Title Loans but does make loans with an auto used as collateral. Using a car as collateral may allow you to obtain a loan when you would normally be turned down or it may allow you to get a larger loan then if you didn’t use a car title.

When using a car as collateral they ask that you bring the automobile title and drive the car to our office when you get the loan so we can analyze the condition of the car. You do not need to leave the car with them when you get the loan.

Payday Loan:

Definitions;

1. A loan that is obtained under the agreement that it will be paid off within a term between 14 days and no longer then 31 days.
2. A loan where a postdated check is used to secure a loan. This check is usually dated between 14 and 31 days ahead of the date the loan is obtained.

The Loan Factory offers loans have from 2 to 12 months of principal and interest payments letting you pay the amount you borrowed off by the end of the term with affordable payments and not a lump sum in 14 to 31 days like some “Payday Loans”.