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 Kansas, banks and credit unions are regulated entities that offer various types of loans to consumers and businesses. Secured loans require collateral, such as a home or car, which the lender can claim if the borrower defaults. Unsecured loans do not require collateral and are often based on the borrower's creditworthiness. Home mortgages are secured by the property purchased, while home equity loans allow homeowners to borrow against the equity in their home. Installment loans are repaid over time with a set number of scheduled payments. Auto loans are typically secured by the vehicle being purchased. Student loans can be federal or private, with different terms and conditions. Credit cards offer revolving credit, which can be used repeatedly up to a certain limit. Kansas state statutes and federal laws, including the Truth in Lending Act and the Equal Credit Opportunity Act, provide regulations to ensure fair lending practices and protect consumers.