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 Montana, 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 federal loans offering more flexible repayment options and protections. Credit cards represent a form of revolving credit and can be unsecured or secured by a deposit. Montana's Division of Banking and Financial Institutions oversees the regulation of state-chartered banks and credit unions, ensuring they comply with state statutes and federal laws, including the Truth in Lending Act (TILA) and the Equal Credit Opportunity Act (ECOA), which mandate clear disclosure of loan terms and prohibit discrimination in lending.