The increase in prices as a result of inflation. An unforeseen event such as the breakdown of an appliance or the vehicle. The acquisition of a whim as a reward. These and many other reasons can be the reason that encourages us to request a loan. Before explaining what this financial product consists of, it is convenient that you know the difference between credit and loan, since there are notable differences between both concepts. Likewise, within the field of loans there is also a lot of information that should be known before stamping a signature on a contract.
If we focus on the field of loans, it is convenient to know that it is a financial operation by which a bank (or other company) lends money to a certain person (or company) that certifies supporting documentation and agrees to return that amount through the signing of a contract where the terms and, obviously, the interest to be paid as a result of this loan are stipulated.
Currently, both banking entities and those companies that operate in the financial market and are in a position to offer loans, offer different types of loans, giving themselves the option of making a personalized offer according to each case. A loan to a natural person is not the same as a loan to a company. And also the economic and solvent conditions of each applicant. In normal cases, the request for credits is an agile process, both in the presentation of documentation and approval.
Choosing the best loan depends on two factors: the type of loan we need and the interest we must pay. We must evaluate these aspects before signing with the company that will offer us that money. Another aspect of interest is to seek the help of an intermediary company, whose work can help us when it comes to obtaining a better interest for our benefit.
Maturity Loans
If we look at the term established to return the money we receive, plus its corresponding interest, we find three types of loans.
-Short term: its amount is small and its return term, too; obviously we must ensure that we are willing to return that money. Normally in a year. They are loans that are requested for contingencies or for a vacation.
-Medium term: the amount increases and we have between 3 and 5 years to return the money; Normally, these loans are requested for the purchase of a car.
-Long-term: when we want to buy a home or start a business, then we must opt for a loan with long-term repayment. It would be between 20 and 30 years.
Depending on the money, and its use, and the repayment time, we must know that we can find several types of loan.
-Of a personal nature: they are known as consumer loans. If we need between 1,000 euros and a maximum of 60,000 euros, this would be the desirable option. The guarantees to present are minor (in documentary matters) and their granting is quick. This money is used to purchase a vehicle, repair an appliance, pay for studies, and so on.
-Mortgage loans: if we buy a home we must opt for this option. The entities finance 80% of the value of the chosen house. Apart from knowing links, we must know that there are fixed-rate loans (right now difficult to access), variable and mixed. The amortization period has a maximum of 30 years. The documentation to present is also greater and you always have to try to find the best possible offer.
-Business loan: if our objective is focused on making a business a reality, we must present a detailed report on it, trying to find that financing that completes that desire to set up a business of our own. In the granting of this loan, as with the previous ones, the figure of a guarantor can also be used, although this also implies knowing the consequences that these people would face.