A loan is a loan, the transfer by the lender to the borrower of a certain amount of money (or another asset), subject to the return of the full amount in the future and for a fee.
A loan differs from all other methods of temporary transfer of property. There are two main differences:
The issuance of a loan involves the repayment of the entire loan to the creditor in a predetermined time frame;
A fee is charged for using the loan, the amount of which is also previously agreed upon.
In most cases, loans are loans issued by banks and credit organizations that have received special permits. It is such loans that are regulated by law and are offered on the credit market. Best loans at http://usapaydayloans.info/florida/.
Advertising credit organizations often promises an individual approach to the borrower. This is only partially true. It is customary to standardize and classify loan offers on several grounds.
For loan purposes:
Target — loans issued to finance the specific needs of the recipient;
Inappropriate — here the recipient is free in his expenses.
By way of providing a refund:
Collateral — having a prerequisite for the transfer to the creditor of the pledge of valuable property or rights to it;
Unsecured — in this case, the observance of the loan agreement by the borrower is not provided by property;
Secured loans — this means the appearance in a credit transaction of third parties who assume responsibility for compliance by the borrower with payment obligations;
Loans without guarantors — in this case, the borrower bears all obligations independently.
Collateral, guarantee and other additional guarantees make the loan more reliable in the eyes of the lender. In this regard, there is one general pattern:
The more reliable a loan is secured, the lower the fee for it.
This means that interest rates on secured loans are lower than on unsecured ones; the issuance of secured loans is easier and faster.
In addition to the rules and restrictions already listed, lending is subject to additional obligations for the borrower. This may be the obligation to engage in a specific type of activity, the allocation of borrowed funds for certain operations, other restrictions.
Especially significant for lending is the method of using borrowed funds. It is on this basis that loans are classified first. So distinguish:
Consumer loans — loans to individuals for everyday needs, the purchase of necessary household items, etc .;
Business loans — so often called borrowing for the development of entrepreneurial activity;
Real estate loans are loans for the construction or purchase of buildings and structures. Most often, the acquisition of housing is credited this way;
Car loans — issuing a loan to buy a car.
Education loans — received funds are sent to educational institutions as tuition fees;
Credits for treatment and rehabilitation are a way of paying for services in these areas.
