The ideal loans, our types of Bank Loans
In bank loans there is a creditor and a debtor. The creditor grants the debtor a certain amount of money for a certain amount of time. The condition for the loan to be made is that when the debtor has to pay back the loan. In the initial loan contract, it is agreed to return the money with an interest in between.
Mortgage loans begin when the loan is made to the interested party. There must be a guarantee in between, which is a dwelling in most cases. It is the duty of the debtor to comply with the initial conditions of the loan. If you do not settle the debt, the debtor’s home will become the property of the creditor. The loan cannot be more than 80% of the value of the home; This way it guarantees its usefulness.
Other type of loans
Student loans, study loans, are becoming increasingly popular in the United Kingdom. Banks promote their loans, boosting education and making them attractive to student families. The loan of studies tries to improve the offer of the scholarships, since in the long term and with a good volume the bank ends up earning very significant profits. Interest on these types of loans is relatively low compared to other types of loans.
Consumer loans are short term and less money borrowed. The government can finance durable consumer products such as a television, a car or a motorcycle. All kinds of durable products in general, extra or unforeseen expenses. You can purchase services, as well as goods.
The business loan is quite timely to start a business. The project is justified before the financial institution and the company is founded. When a company wants to expand, or start a project, it is also extremely profitable. When there is not enough cash flow and the company requires some extra expense, it is also requested. Before the current crisis and the proliferation of Small and Medium Enterprises, business loans increased their demand.
The loan and its benefits
There are several options for these types of loans, which in turn combat the economic crisis in your country if it exists. Crowfunding is a collective financing for very large projects. There are countless projects that involve impressive capital. On certain occasions a single financing is not enough for any transnational company to have enough liquidity to grow. This option called micro-patronage can also be used for political campaigns.
Credits are now sub-classified loans in different ways. Traditional credit, commercial credit, consumer credit and mortgage credit. On the other hand we have consolidated credit, pledge credit, personal credit, fast credit, syndicated credit, educational credit, automotive credit, mini credit, micro credit and business credit.
For all the credits mentioned above the only thing that will vary are the parameters of all. These sub-classifications are mainly: the amount of the amount borrowed, the form and the periods in which payments are to be made. The interest rate, which depends on the need of the person who needs the loan. The more you lend me the more you charge me. All this is agreed at the time of signing the contract.
Advantages and disadvantages
The advantage of loans, for example, is that in Real Estate, most assets increase over time. It is totally profitable to apply for a loan to acquire a home. Or even the same land, to later build a house. With the passage of time this house increases its value, a good business. This is an example of a profitable business.
The disadvantage of the loans is the lack of commitment of the debtor towards the creditor. Today the economy is much more volatile than it was before, and people have to uncover a hole to cover another.
A loan is money that we have to pay back, and you have to be smart when applying. There is no consistency in spending money that you really don’t have. There has to be a considerable economic balance before even thinking about applying for a loan. There are professionals dedicated exclusively to that, to lend money to people who did not know how to take care of their economy from the beginning.
Banks are dedicated to saving our money and charging us just a little for this task. They are also dedicated to lend us money that we will not be able to pay later, if we are not intelligent.
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