Unusual Uses of Loans

 

The following list contains 101 Unusual Uses of Loans. The list includes examples of the loan amounts and collateral requirements. Learn more about these loans by reading our article. This article will discuss some of the unusual uses for personal loans. Make sure you read the entire article before you apply for a loan. You'll be pleasantly surprised. If you are new to the world of personal loans, here are a few examples of what they can be used for.

Collateral requirements

There are a number of unconventional uses of loans. Real estate is one of the most common. Banks can offer high advance rates on real estate, but these rates depend on its marketability, location, and quality. Prior to the financial crisis, banks were eager to advance 100 percent of the value of your home. However, the crash of 2008 and 2009 taught us that real estate value can decrease rapidly, resulting in huge losses for banks. However, today's banks are happy to advance up to seventy percent of the value of a home through a mortgage.

Other types of assets are accepted by lenders. Cash in your bank account is an ideal collateral. It is easily accessible and has a clear value. A car or a savings account can also be collateral. Some lenders will accept life insurance policies with a cash value. However, funds in retirement accounts are usually not acceptable as collateral. Listed below are 101 unconventional uses of loans and their collateral requirements. So, which of these uses of collateral are appropriate for you?