3.91- What Types of loans are covered under TILA?
Preceding the discussion regarding which loans are covered under TILA, let us look into what is exempt under the TILA Act. If credit is granted primary for an enterprise or for commercial purposes then it will fall outside of the ambit of Regulation Z. If the credit is granted to an individual then Regulation Z will apply however if it is an entity then it will be classified as an exemption. Specific student loan schemes, credit granted for the public’s sake, home fuel budget programmes also fall outside Regulation Z’s purview. Different provisions are to to be referred to when credit cards are involved.
TILA covers both mortgage brokers and particular creditors. Creditors that grant credit on a day- to- day basis will be governed by TILA and the same applies to those individuals who grant credit for personal reasons etc. Banks, suppliers and retailers etc. are relevant here. Consumer loans will be governed by this Act too. Property and personal dwellings will be catered to instead of assets and investment.