Types of loans

  • Updated

Types of loans

CL Loan supports the following types of loans:

  • Consumer Loan

  • Business Loan

Consumer loan

A consumer loan is an amount lent to an individual usually on an unsecured basis for personal, family and household purposes.

The following are the types of Consumer Loan:

  • Personal loans for managing temporary cash flows

  • Loans for assets, auto, household appliances, farm equipment

  • Loans for services, for example, household improvements, alternative energy

  • Loans for special events, for example, weddings, property tax

  • Loans for education, for example, tuition, living expenses

Business loan

A business loan is a loan specifically intended for business purposes. As with all loans, it involves the creation of a debt, which will be repaid with added interest. 

The following are the types of Business Loan:

  • Loans

  • Lines of Credit

The following are some more types of Business Loans with examples:

  • Purchase of income generating assets. For example, kitchen Equipment for Restaurants, Plant and Machinery for a Manufacturing Company

  • Purchase of non core assets. For example, Office Equipment, Computers, Furniture and Fixtures

  • Financing working capital for purchase of goods to be sold

  • Financing fluctuations in cash flow when sales are seasonal

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