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 Illinois, 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 and home equity loans are secured by the borrower's property. Installment loans, such as personal loans, are repaid over time with set monthly payments and can be either secured or unsecured. Auto loans are typically secured by the vehicle being purchased. Student loans can be federal or private, with different regulations applying to each, and credit cards represent a form of unsecured revolving credit. The Illinois Department of Financial and Professional Regulation oversees state-chartered banks and credit unions, ensuring compliance with state statutes, while federal laws and regulations also apply, such as the Truth in Lending Act (TILA) which requires clear disclosure of loan terms and costs.