Banks and credit unions are two of the most common sources of consumer and business loans. These loans may be secured or unsecured, and may take the form of home mortgages, home equity loans, installment loans (loans repaid in monthly installments), auto loans, student loans, and credit cards.
In Delaware, banks and credit unions are regulated entities that provide various loan products to consumers and businesses. Secured loans, such as home mortgages and auto loans, require collateral, which the lender can claim if the borrower defaults. Unsecured loans, like most credit card debts and some personal loans, do not require collateral. Home equity loans allow homeowners to borrow against the equity in their property. Installment loans are repaid over time with a set number of scheduled payments. Student loans can be offered by private lenders or through federal programs, with different terms and conditions. Delaware state statutes and federal laws, including the Truth in Lending Act (TILA) and the Equal Credit Opportunity Act (ECOA), provide regulations to ensure fair lending practices, disclosure of loan terms, and non-discriminatory lending. Additionally, the Delaware Banking Code provides specific regulations for institutions operating within the state, including licensing requirements, examination procedures, and consumer protection guidelines.