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 New Hampshire, 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 and are commonly used for purchasing or refinancing a home or borrowing against the equity in a home. Installment loans are repaid over time with a set number of scheduled payments and can be used for personal, auto, or other types of purchases. Auto loans are specifically tied to the purchase of a vehicle and are secured by the vehicle itself. Student loans can be obtained to pay for education-related expenses and may be offered by private lenders or through federal programs. Credit cards offer revolving credit lines and are typically unsecured. The New Hampshire Banking Department oversees state-chartered banks and credit unions, ensuring compliance with state statutes and regulations, while federal laws such as the Truth in Lending Act provide a framework for disclosure of terms and consumer protections on a national level.