Simply put, a loan is a specific amount of money that is given to a person or institution to use for a certain amount of time. There is usually a fee, and/or interest rate, associated with a loan. Loans, unlike grants or gifts, must be repaid.

The Truth in Lending Act (TILA) requires creditors to give you written disclosures of important terms of credit agreements, such as APR, total finance charges, monthly payment amounts, payment due dates, total amounts being financed, length of the credit agreement, and any charges for late payment. Therefore, request written information about the loans you consider taking and use it to shop around for the best terms among various lenders. Types of loans may include --

• Consumer Loans – Loans to consumers that may be for specified or unspecified purposes
• Mortgage Loans – for buying or refinancing a home or condominium
  • Please see Mortgage Tutorial for additional information on mortgage loans
• Auto Loans – for buying a new or used vehicle
  • Please see Automotive Tutorial for information on auto financing