Types of Loans

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Currently, several types of loans can be distinguished. Each of them is granted on slightly different terms and involves different ways of paying back such a loan. One of the best known loans is a mortgage.

 

Mortgage

Mortgage

Most customers decide to take a mortgage. Why? The answer, contrary to appearances, is very simple. They just want to be able to buy a flat or house and have their own hangman on earth. It is a long-term bank loan which, as the name implies, is secured by a mortgage. Most often, such a loan is taken for the purchase of an apartment or the construction of a house or for the purchase or construction of another property. It can be distinguished by purpose mortgage, construction and mortgage loan or mortgage loan. Due to the currency, we can distinguish a mortgage in the national currency or in another foreign currency.

 

Investment loan

Investment loan

An investment loan is as popular as a mortgage. This type of loan is taken in order to be able to finance projects implemented by the entrepreneur that are supposed to increase the size of fixed assets. Money borrowed in the form of an investment loan can finance both tangible and intangible investments. Tangible investments that can be financed for this type of loan include the purchase of fixed assets, as well as the purchase, construction and extension of facilities that are closely related to the borrower’s business. The purchase of securities is, among others, intangible assets. Financial investments are also financed with an investment loan. It may be the purchase of shares or stocks.

 

Consumer and commodity credit

Consumer and commodity credit

A consumer loan is an interesting bank loan. It is granted for specific customer needs. Such a loan is paid back in a way that is agreed individually with the lender. Commodity credit is also quite well known. Many people know it as a trade or trade loan. In this case, there is some kind of market exchange of various goods. Such credit occurs when a normal sale / purchase transaction is converted into a loan relationship. This exchange happens when one of the parties wants to postpone the repayment date. It is a loan that allows you to carry out commercial activities, even when you do not have enough funds to buy the goods. There is also social credit. It allows you to ensure that the issue of money does not depend on the bank, but on every item that wants to do something useful.

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