A firm that makes secured and unsecured personal loans to qualified individuals, also called a small loan company is called:
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A. B. C. D.B
The correct answer to the question is B. Consumer finance company.
A consumer finance company is a type of financial institution that specializes in making small loans, typically to individuals who do not have access to traditional bank loans or lines of credit. These loans are often used for personal expenses, such as medical bills, car repairs, or unexpected expenses.
Consumer finance companies can offer both secured and unsecured personal loans, depending on the borrower's creditworthiness and financial situation. Secured loans are backed by collateral, such as a car or house, while unsecured loans are not. Because unsecured loans carry more risk for the lender, they typically come with higher interest rates and fees.
Unlike credit unions, which are member-owned and typically offer a wider range of financial services, consumer finance companies are for-profit businesses that specialize in lending. Sales finance companies and captive finance companies are other types of financial institutions that focus on financing specific types of purchases, such as cars or equipment.
In summary, a firm that makes secured and unsecured personal loans to qualified individuals is called a consumer finance company.