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 York, 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 subject to state laws regarding foreclosure and lending practices. Installment loans, which are repaid over time with set monthly payments, can be used for personal, auto, or other types of purchases. Auto loans are typically secured by the vehicle being purchased. Student loans can be provided by private lenders or through federal programs, with different regulations applying to each. Credit cards represent a form of unsecured revolving credit and are subject to federal laws like the Truth in Lending Act, as well as state regulations on interest rates and consumer protections. Both federal and state laws aim to protect borrowers from unfair lending practices and ensure that lenders provide clear information about loan terms.