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 Virginia, banks and credit unions are regulated entities that offer various types of loans to consumers and businesses. Secured loans require collateral, such as real estate for mortgages or vehicles for auto loans, while unsecured loans do not. Home mortgages and home equity loans are tied to the borrower's property. Installment loans are repaid over time with a set number of scheduled payments. Auto loans are specifically for the purchase of vehicles. Student loans can be obtained to pay for education-related expenses. Credit cards offer revolving credit that can be used for various purchases. The Virginia State Corporation Commission's Bureau of Financial Institutions oversees state-chartered banks and credit unions, ensuring compliance with state statutes and regulations. Additionally, federal laws such as the Truth in Lending Act and the Equal Credit Opportunity Act provide a framework for loan terms and borrower protections.