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 Idaho, banks and credit unions are regulated entities that offer various types of loans to consumers and businesses. These loans can be either secured, with collateral such as property or a vehicle, or unsecured, without collateral. Home mortgages are loans provided for the purchase of real estate, where the property itself serves as collateral. Home equity loans allow homeowners to borrow against the equity they have built up in their property. Installment loans are repaid over time with a set number of scheduled payments and can be used for a variety of purposes, including personal and business needs. Auto loans are specifically for the purchase of vehicles, and student loans are designed to help with the costs of education. Credit cards offer revolving credit, which can be used repeatedly up to a certain limit and is unsecured. Idaho state statutes and federal laws, such as the Truth in Lending Act, regulate the lending practices of banks and credit unions to ensure consumer protection.