We often meet with the terms "Loan" and "loan".What is the difference between an ordinary person can not understand.Often the loan is called "bank loan".However, between the two there is a big difference.To know the difference between a loan from the credit should be familiar with the economic nature of these two concepts.
principal difference between grants and loans
Overall credit - is issued by a banking institution under a certain percentage of the time sum of money.The main characteristics of the loan are paying off, urgency and repayment.It follows that this type of relationship does not involve the issuance of a grant or loan funds for an indefinite period.That is not true of the loan, which can be not only in monetary terms but also in the form of property.In addition, it can be given as free of charge and paid.Below is discussed in more detail the concept of "loan" and "credit."What is the difference they can understand, if only to study their basic features.
Credit
loan has the following characteristics and distinctive features of the loan.
- relationship between the borrower and the lending institution that provides credit, as the Civil Code regulated, and the financial legislation.
- examining the concept of "loan" and "credit" the difference can be seen to the participants of these relations.Lender may only entity having the license of the Central Bank to carry out credit operations.It may be banking institutions, microfinance institutions, and others.A lender may be both legal entities and natural persons.
- lending can take place only in cash.
- lender does not own the loan funds, he plays the role of mediator, and the accumulated money - it's debit contributions to third parties, and the amount of interest received from other borrowers on other loans.
- loan agreement between the bank and the borrower is required to conclude if any amount of the loan.
- If you look at the economic nature of the concepts of "loan" and "credit" the difference can be understood by the fact that the loans should be paid, t. E. The lender must set interest rates on borrowings.In addition, he has the right to also include fees for credit support.A loan can be paid and gratuitous.
- The interest rate should not be lower than the refinancing rate at the time of issue of money, otherwise the lender will be ruined, because it has its own obligations under the deposit of debit and credit of their own.
- lender can develop special-purpose loans, which suggest the direction of the funds received by the borrower, only for the purposes that are specified in the loan agreement.
- Another feature may be noted the difference between a loan from a bank loan - is that the debt on the loan is repaid in full at the same time, and under the credit - units, according to the schedule presented in the loan agreement.
- lender has the right to legally demand from the potential borrower in the form of collateral or guarantee the property of third parties, as well as impose fines for late payment on the loan.
- Property located on bail, is considered to be encumbered, and the rights of the borrower on a limited as long as the loan is not paid.If there is damage of collateral, the bank may require the borrower full compensation, even if the borrower pays a timely manner all payments on the loan.
- difference between grants and loans lies in the fact that if the loan the lender may, if the borrower refuses to return the borrowed money, request a court of full repayment of the debt together with all penalties.
- Credit is characterized by a special lending products with state support that allow certain categories of borrowers to get money on favorable terms.
loan
in the term "Loan" and "loan" the difference lies in the fact that the loan does not have to be paid.The loan is a loan option offered by a bank or other lending institution.A loan can also be obtained, for example, the company in which the person works, and the like.
Types of loans
Thus, the term "loan" is used more widely than "credit", and it has the following types:
- consumer loans.
- bank loans.
- loan assets.
loan assets involves the transfer of assets, the bank - this is a bank loan for a fee, and the consumer is given when purchasing a man any thing, for example, household appliances, car and so on. D.
And why you need a loan?
Why do you need a loan, if you can take out a loan and not pay interest on it?To answer this question it is necessary to understand the difference between a loan from the credit and what advantages they have.
to take out a loan or borrow money from someone else, you must have a trust relationship with the lender, and in order to achieve such a relationship should be long and hard to try.But to get the loan you need only confirm the solvency of the credit institution.Today, banks have developed lending programs that allow you to get a small amount of money with the idea of only one passport.However, such lending implies higher interest rates because of the risk carried by the bank.
similarity loans and loan
There are similarities among the concepts of "advance" and "credit".The difference is clear to the reader.And what are they similar?
Both of these concepts suggest that borrowed money or property (in the case of loans) should be returned.Loan must be paid interest and fees for the use of funds.In the case of loans under the contract may also provide certain compensation for the transferred property, which can be expressed in monetary terms.
