Today, banks offer a variety of lending programs. Loans may be granted to support small businesses and other purposes. Today, most people have a bank loan. The types of loans that are most popular among the population: mortgage, consumer, car loan and credit card.
The most expensive loans
It is believed that the most expensive loans are both consumer and credit cards. The reason is that the commission for them is overpriced many times, generally, it can reach up to 50% per year.
However, the most expensive loan is a mortgage. The overpayment will be in hundreds and even millions of USD. But despite these conditions, there are many people who want to take such a bank loan. The types of loans are described in more detail below.
The most popular interpopulation. People often take it to buy large home appliances: fridge, TV, washing machine, etc. Thanks to this, you can also pay for the services of other companies, such as buying a ticket to a travel agency. The terms of the loan range from a few months to a year.
It is divided into two categories: target and non-target loans. For example, a customer must purchase a refrigerator. He comes to the store, selects the goods he needs, and the bank that gives him the target loan.
The second type of loan is issued by the bank itself. The client concludes the contract, takes the required amount and spends money at his discretion. Then the debtor pays the set amount to the bank monthly.
Mortgage loan issued for the acquisition of real estate. Acquired housing may be secondary or located in new buildings. The loan repayment guarantee is the purchase of housing or other property owned by the debtor.
The bank providing this service must pay an advance of 10% of the total amount. In addition, the debtor will have to ensure the acquired assets and his own health. All financial costs shall be borne by the debtor. The conditions for repaying the mortgage loan are from 10 to 30 years.
A car loan is issued to buy a new iPhone or used car. In this case, the debtor will have to ensure his own health and cars under the CASCO program. Loan repayment period – several months or more.
The credit card is a very convenient system.payments and is very popular with many people. For purchases in the store can pay. The bank transfers money to this card. The usefulness of a credit card is that you can make any purchases without funds. However, there is also a significant disadvantage – a very high-interest rate. Serious penalties will apply if payments are delayed.
In this case, when stopping a property, such as a car, a certain amount is indicated. The main disadvantage of such a loan is the short maturity of the debt.
Commercial loan for small businesses
Commercial credit is a direct excuse for the organization. The first organization gives money and the second organization provides them with a product or service. Such a loan is the best option for financial support for small businesses.
Most often, small businesses lend at the expense of a commercial loan. This type of loan does not apply to classic loans issued by the bank. Such a loan may be issued between commercial organizations.
The main essence of a loan is that one organization gives money to the other for a product or service, while both parties sign an agreement and an agreement. For example, one company sells another 20 tons of metal to another.
The price of one tonne is 4000 USD. According to the terms of the contract, the refund will be made 7 months after the transaction is concluded. In the event of a delay, the borrowing organization is obliged to pay an additional 5% of the amount of metal sold each month.
Features commercial loan
The creditor can be not only the buyer but also the sellers. In the first case, the buyer pays a certain amount for a commercial loan. This is a deposit for a specific product or service. If the seller acts as a creditor, then when the loan is issued, the period for which the buyer is obliged to repay the debt is calculated. It is also possible to repay the loan in installments. In this case, however, the interest rate will be provided.
The main advantages of a commercial loan are a percentage that is much lower than in conventional banks. Advantages include the fact that a commercial loan satisfies the needs of two parties at once. The buyer has the opportunity to buy exactly the goods for which he can not immediately pay.
And the dealer will complete the customer base. It should be noted that the interest rate is already included in the price of the goods. The organization can offer loans and get them. This makes it possible to significantly save money. For this reason, small business loans take place under very favorable conditions.
The main drawbacks include a limited inventory vendor. Therefore, organizations often use controls and accounts to expand their calculation capabilities. There is also a certain risk that the buyer may fail and repay the loan on time. A significant disadvantage is the short maturity of the loan. However, some organizations may offer a deferred payment to their customers.
As for the interest rate, in this each buyer is negotiated individually. If the agreement provides that the lender does not provide the debtor with cash but the thing, then the interest rate is excluded. If the borrower has breached the loan agreement, he is obliged to pay a fine.
The amount of the fine is also charged individually. If the contract does not fix a fixed interest rate, the refinancing rate shall apply. If the borrower does not want to agree on an interest rate, he can take a similar loan from a commercial bank.