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 Dakota, 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. Installment loans, such as personal loans, are repaid in fixed 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 unsecured revolving credit, where the borrower has a limit they can spend and is required to make monthly payments towards the balance. North Dakota state statutes, along with federal laws such as the Truth in Lending Act (TILA), regulate the disclosure of terms and consumer protections related to these financial products. The North Dakota Department of Financial Institutions oversees state-chartered banks and credit unions, ensuring compliance with applicable laws and regulations.