Different types of loans

paying off a loan early

Depending on the issuer , the loan can be formal or informal . If the loan is granted by a regulated entity, it is formal; if the grantor is not regulated, it is informal (for example, an informal lender, a family member).

Formal credits allow those who request it to create a credit history; informal loans, no. There are also differences in the financial conditions of the loan . Although when requesting a formal loan the requirements to be met are usually higher, both the costs and the fees charged, and which are reflected in the fees that the client must pay, are lower than those paid in informal 당일대출.

There are also differences regarding the management

and way of proceeding in the management of the customer’s default , in case that happens. When the default occurs with a regulated entity, the management is usually regulated and predictable. When it occurs with non-regulated entities, on the other hand, managing delinquency is usually risky, given that as they are not subject to control, they tend to resort to different ways to collect unpaid fees, such as charging high amounts for late payment, threats, etc. .

Depending on the destination or object for which we need the money, there can be as many types of loans as there are objects. The best known are:

Personal or consumer loan

It is a contract by which the financial institution advances an amount of money to another person, with the obligation that the person return the money initially requested (principal) and also pay the agreed interest and the expenses derived from the loan. operation. Many times the names of these loans are usually identified with the object to be financed, such as loans to buy a car or pledges, vacation loans, etc. The amount that banks usually offer varies according to the person who requests it, depending on their credit history and the guaranteethat as clients we offer when requesting a loan and that arises from the analysis of the assets we have, the level of our stable income, our work seniority, among others.

Mortgage loan

It is a contract by which the financial entity advances a certain amount of money to another so that the latter can buy or renovate a home or other property. The holder grants as collateral the property for which he requests the loan (mortgage), which will pass to the financial entity in the event that the borrower does not comply with his payment.

Unlike personal loans, and considering that the amounts involved are generally higher, the repayment terms are usually longer and the interest rates lower .

To access both types of credit, banks usually require borrowers to associate the loan with a sight bank account, authorized in their name, where the money will be deposited and through which they will be charged the monthly installments that agree to pay. Commercial Credits are amounts of money in Chilean or foreign currency that the Bank grants to companies of various sizes to meet the needs of working capital, acquisition of goods, payment of services oriented to the operation of the same or to refinance liabilities with other institutions. and short-term providers and that is normally agreed to be paid in the short, medium and sometimes in the long term.

By aamritri

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