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There are several different types of loan processing services available to consumers who need to borrow money to make large purchases, go to college, start a business, fund a vacation, or make home improvements. These loan processing services include bank and credit union loan services, payday and title loan companies, mortgage processing services, student loan officers, and small business lending organizations. The type of loan service needed depends on the reason for the loan itself.
Banks and credit unions are generally service most consumer and commercial loans. When a loan is required to pay for a vehicle or boat, for a down payment on a new home or to make home or office improvements, consumers often look to banks and credit unions to provide these funds. Bank loan officers carefully weigh the credit worthiness of the loan applicant before lending money.
If credit history is an issue, or if a regular bank loan is not possible, consumers often turn to payday loan and title loan companies to provide much-needed cash for emergencies. These loans often come with hefty interest rates and difficult repayment terms, but can be a relief to those who do not qualify for other traditional loan processing services. Payday loans and vehicle title loans are processed in a matter of hours instead of days like a bank loan. They are limited, however, to a small percentage of the consumer’s salary or assets when the loan agreement is made.
Mortgage processing services are used when a homeowner wants to borrow money against the value of a home to make home improvements or to pay for other needs like vacation or retirement plans. Loans of this nature are generally handled through a bank mortgage officer and are based on the actual value of the home, less any money still owed on any existing mortgages. There are also reverse mortgage programs available whereby homeowners allow banks to “buy back" their home and home owners receive payments over time during the retirement years.
Students attending trade schools, accredited colleges, and universities often choose to take advantage of student loan processing services. Student loans are available for full-time students who need money to pay for tuition, books, and other expenses related to attending school. These student loan processing services usually take place on campus as part of the financial aid services and are handled by student loan officers who process the paperwork needed to obtain loans.
Finally, a common form of loan processing services occurs in the business world in the form of loans granted to new and small businesses. There are a wide variety of loan programs available for many groups of entrepreneurs and business owners who need additional business capital. Business loan representatives help business owners with the detailed paperwork needed to get more money to pay for equipment, office or warehouse space, and staffing needs.