Wonder what types of loans exist? We’ve broken them down for you.

Unsecured Loans

Secured Loans

Fixed Rate Loans

Variable Rate Loans

Installment Credit/Loan

Revolving Credit/Loan

  • Here, Káyòdé is, of course, the Lender, and Chichi is the Borrower. Káyòdé has extended a Revolving Line of Credit/Loan to Chichi. This loan is also a Fixed Rate loan which is Unsecured.
  • Here, Lékan has obtained a Secured, Fixed Rate, Installment loan from Káyòdé. Aduke, unfortunately, is the collateral for the secured loan. It is an Installment loan because it is for a fixed amount (N30,000) and Lékan is expected to make a fixed number of regular payments (9) of a fixed amount (NGN 3,750) for the duration of the 9 months.
  • In this scenario, Bànky has obtained a Variable Rate loan from Káyòdé. The Index, in this case, is the percentage rise in the price of the dollar.

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