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 North Carolina, banks and credit unions are regulated entities that provide 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 and are commonly used for purchasing or refinancing a home or borrowing against the equity in a home. Installment loans, such as personal loans, are repaid over time with set monthly payments. Auto loans are secured by the vehicle being purchased. Student loans can be either federal or private, with different terms and conditions. Credit cards represent revolving lines of credit and are typically unsecured. The North Carolina Commissioner of Banks oversees state-chartered banks and credit unions, ensuring compliance with state statutes, while federal law, including the Truth in Lending Act and the Equal Credit Opportunity Act, provides additional regulations and consumer protections for all lending institutions operating in the state.