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 Texas, banks and credit unions are regulated entities that provide various loan products 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 real estate purchased or owned by the borrower. Installment loans, such as personal loans, are typically repaid in fixed monthly payments and can be secured or unsecured. Auto loans are secured by the vehicle being financed. Student loans can be federal or private, with federal loans offering more flexible repayment options and protections. Credit cards represent revolving lines of credit and are generally unsecured. The Texas Finance Code provides the regulatory framework for these financial institutions and the loans they offer, ensuring compliance with interest rate limits, disclosure requirements, and consumer protection laws.
