Which of the following loan types is exempt from TILA regulations?

Business loans are exempt from the Truth in Lending Act (TILA) regulations. TILA was established to promote informed use of consumer credit by requiring disclosures about its terms and costs. The act primarily applies to consumer loans, which are loans made to individuals for personal, family, or household purposes. Since business loans are intended for commercial purposes, they do not fall under the protective guidelines set forth by TILA.

In contrast, home equity lines of credit (HELOCs) and mortgage loans are typically covered by TILA, requiring lenders to provide specific disclosures to ensure that consumers are fully aware of the costs involved. Auto loans, as consumer loans, also require TILA disclosures. The key distinction lies in the purpose of the loan—business loans are excluded due to their commercial nature, reflecting a focus on transactions that are outside the realm of consumer finance.