Types of loan and loans there is a set today. The credit in essence – one of private types of a loan, a difference between these concepts that the loans are granted only by the bank organizations.
Types of loan and their classification
In a broad sense the credit is a broadcast on temporary use of any resource, most often – funds. The main condition of the credit – it is given for a certain term and the percent undertakes its use.
Between the recipient of the credit and the creditor an agreement (contract) in which all conditions on which the credit is issued are described is signed. Non-compliance with the credit agreement by the debtor attracts responsibility which is expressed in penalties, a penalty fee, prosecution.
Types of loan:
- usurious – one of the oldest types of loan, it was always given under extortionate percent;
- lombard – the credit on security which gets in case of failure to pay a debt;
- consumer – the credit intended for natural persons most often undertakes for the purpose of commission of medium-sized purchases;
- commercial – this credit consists in delivery of goods with a payment delay;
- international – the credit in which the creditor and the borrower are representatives of the different countries the states, banks, business companies can be participants of the international credit;
- state – as the debtor in this type of crediting acts the state, as the creditor – legal entities and the population, it undertakes for the purpose of a covering of budget deficit;
- bank;
- mortgage.
Types of the bank credits
The standard classification of the bank credits in the world does not exist, into types they are divided on terms, appointment, the size, providing and some other parameters. To destination they are consumer, mortgage, agricultural, industrial, etc. The bank credits can be poste restante or urgent. On terms the credits divide into short-term (less than a year), long-term (more than 3 years) and medium-term (1-3 years).
By the sizes the credit can be small, average and large, the last is considered that if exceeds the size of 5 percent of the capital of creditor bank. Besides, the credits can be provided and not provided, the real estate most often acts as providing, besides, it can be the industrial equipment, the land plots, cars.
One more important parameter by which the credits are divided is a way of charge of an interest rate. The rate can be and fixed, and changing. Can charge it for the rest of a debt or on all credit at once, having divided the received sum into equal payments. All above parameters are surely specified in the credit agreement.
Types of a mortgage loan
The mortgage loan is a kind of the bank credit which usually undertakes on purchase or construction of the real estate. Most often it is the long-term credits with the fixed interest rate. Payments on such credit are made by monthly equal sums.
One of types mortgage is the credit with spherical payment. The essence of this loan is in that, upon termination of the term of the credit the main, sharovy payment which can include all sum of a loan and percent or their part is made.
The spring mortgage loan is paid by equal shares within several years then there is a recalculation of percent on the rest of a debt and the payment becomes lower.
The mortgage loan with participation is a difficult scheme of financing at which the debt is partially or completely repaid by income from the acquired real estate. This type of mortgage lending is considered favorable to banks therefore also the interest rate for it is appointed lower.
Types of the short-term credits
The short-term credits are the credits from 10 days up to 2 months. Most often it is very small loans designed to fill the urgent shortage of money. As very short-term credits are not favorable to banks, they appoint for them very high interest rate.
One of types of the short-term credit – an overdraft. The bank charges to the client on the salary card the sum equal to salary which is not received yet. If the client spends this money, the bank through certain time will remove both a debt, and percent.