Everyone had to hear two concepts of loan and credit, what is the difference, however, is not clear to everyone. But, anyway, these two concepts are firmly entrenched in the life of every person, due http://www.cashadvance-loans.net/ to the lack of their own funds for the realization of their needs, have to borrow. But, having carefully studied the difference between a loan and a loan, you can understand what will be beneficial in a given situation. Let’s try to understand two different terms, and understand how they differ from each other.
First of all, consider what is actually a loan. It is a mutual agreement, whether oral or written, between borrowers and the lender. Under this agreement, one party, the lender, transfers to the other, the borrower, any physical object or money, on the condition of urgency and repayment. If you explain it simply, the borrower borrows money or other material things for a predetermined period with a mandatory condition of return. All the terms of the loan agreement is determined by the lender, by the way, it can be both an individual and a legal entity. Still, there is a question of remuneration, it is determined by the lender. That is, it can determine a fixed fee for its services, for example, it is relevant when it comes to a material loan, or a percentage of the issued amount of money.
A loan is a monetary loan executed between two parties, one of which is obliged to have a legal status, on terms of maturity and repayment. Credit relations must be made in writing, the conditions are regulated by the lender. As for the terms of the loan agreement, it must be specified some parameters: the amount of remuneration (interest rate), the procedure and terms of payment. Probably, with such a concept as credit often have to deal with each of us. Loans are divided into several types: non-targeted or consumer, targeted credit, mortgage, car loan, revolving or non-revolving credit lines. Also, loans can be classified by maturity: short-term and long-term.
0
