Different types of loans.

 

Loans are one of the financing methods most used by both individuals and companies. Through this system the lender offers an amount to the borrower associated with interest. These interests will be higher or lower depending on the risk of the operation.

The amount of loans that exists is very varied. For this reason, the experts at Crediting wanted to write this article so that our readers know the different types of loans. Would you like to know more about it? In that case, keep reading this post. Let’s start.

Types of loans

Types of loans

Before starting to define the types of loans we would like to make a small call to attention. Since it is not necessary to confuse a loan with a credit, where the client obtains a line of financing that can be accessed for a certain time. In that case, the interest will be associated with the amount you spend.

Regarding loans, we are going to give you a classification that can be useful for you based on two very determining factors : the duration and the purpose of the loan.

Types of loans according to term

Types of loans according to term

One of the most frequent classifications of the types of loans responds to their duration over time. In this way we can divide these financial products into three main groups:

  • Long-term loans. All those whose duration exceeds three years are included.
  • Medium-term loans. Those loans that range between one year and three years.
  • And short-term loans. Those that do not exceed the amortization year.

And finally, types of loans according to purpose

And finally, types of loans according to purpose

As for the purpose, these products offer a very interesting specialization. In this way, depending on what we need them for, it will be more indebted to go to one type of loan or another.

The most popular types are:

Business loans

These loans are specially designed for those companies seeking financing. This is quite frequent at different times in a business. Whether at birth, to increase production, to invest in fixed assets or to begin expansion abroad.

Until a few years ago, business loans could only be obtained through banks. Nowadays, however, there are many alternatives. From private equity companies to crowdfunding platforms.

In general we can divide business loans into two main groups:

  • Short-term loans. Ideal for those companies that may have certain liquidity problems at any given time. Or for those who need to advance a capital that will amortize in a short time.
  • And medium and long-term loans. Best suited for startups that need capital in the long run to start growing and developing.

Consumer loans

They are those that are born exclusively to acquire consumer goods. Such as a car or household appliances. In exchange for these loans you do not get money, but the product that we are interested in purchasing.

Consumer loans usually have a non-excessively long repayment term and sometimes include grace periods. The commercial brands themselves are the ones that offer them to sell their products.

Personal loans

They are those loans offered both by treacherous credit institutions, banks and savings banks, and by private equity companies and private lenders. These loans are used to face some economic unforeseen that we must solve quickly. For example, a home repair, an unexpected trip, or even a wedding.

They usually have medium repayment terms and it is advisable not to abuse their use, since interest is somewhat high.

Mortgage loans

Undoubtedly the loan par excellence that everyone knows. These loans are specially designed to acquire a home or business premises. They are long-term loans that include very low interest.

These are very high amounts, so the economic conditions to be met by the client are very demanding. Banks and savings banks are responsible for offering them. You can find fixed, variable or mixed mortgages depending on the interest.

Private lenders with Financial credit institution

 

Financial credit is specialized in loans between individuals. Our private lenders with Financial credit institution are willing to provide financing to those individuals and companies that cannot go to a bank.

Private lenders with Financial credit institution

Private lenders with Financial credit institution

Many people ask us how it is possible that we continue to finance people, companies and entities that have a high delinquency profile and that are even registered with Financial credit institution or Rai. The main reason is that Financial credit is much smaller than a regular bank, so we are much more flexible regarding the type of customer profile that we can accept.

Conditions of access to our services from private lenders with Financial credit institution

Financial credit makes access to our financial services very simple through private lenders with Financial credit institution. Applicants who contact Financial credit only have to fulfill two conditions.

Request a minimum of $ 20,000

This minimum amount is the one that allows us to offer loans between individuals with one of the lowest interest rates in the entire market . All of our loans have an interest rate that ranges between 9% and 12%.

This minimum amount also allows us to ensure that the applicant should not deliver money to meet the expenses related to the study processes and opening of his loan.

Have a real estate property

Have a real estate property

Our private lenders with Financial credit institution want to make sure that their money is guaranteed and that they will not lose the investment, so the main guarantee they request is that the applicant have a real estate property that they can use as collateral.

It can be a real estate property of any type and nature, as long as it is free of financial charges (if it were not, we can assess the possibility of expanding the loan to cancel them). We just need a simple note from the Land Registry where the name of the owner (which must be the same person who makes the request) appears along with the other details of the property.

Return flexibility

Return flexibility

Financial credit has an infrastructure, as we have said, much lighter and more agile than a bank, so that we can be much more flexible accepting customer profiles that banks would not accept and also greatly facilitating the conditions for repaying our loans.

Applicants can choose to repay their loan from 1 to 10 years, they can choose the periodicity of payments and installments, and also the type of repayment (French or linear installments or American or interest installments plus final payment of principal). Our goal is never to execute the warranty, but to ensure that the transaction is successfully closed. 

That good! Fast loans without payroll or guarantee.

With the quick credits Lite lender!

With the quick credits Lite lender!

You can get up to $ 900 in less than 1 hour to use what you want and with complete confidentiality, security and trust. You can ask for your money without having to carry out heavy paperwork, everything is done online and very simply and quickly. Neither will you need to have to present any guarantee or payroll or proof of income, the requirements for its grant are minimal.

The private lender sector is booming as banks have turned off the credit tap and it is becoming increasingly difficult to obtain financing. Quick loans and microcredits have become a widely used resource for those who are having trouble making ends meet, or who have to pay a recent bill or receipt that cannot be delayed any longer.

The credit company Lite lender!

The credit company Lite lender!

It is among the most used for its professionalism and speed in the management and granting of loans and for its low cost, one of the smallest in the microcredit market. Although the money limit to request is $ 900, if it is your first request you can only get up to $ 300.

Once you return the money within the agreed period, between 1 and 30 days, you can have access to a new credit immediately. If the amount cannot be returned at maturity, a late fee will be paid and an additional interest of 1% will be applied for each day of delay. If the corresponding amount has not been paid 90 days after the return date, we will be registered with the Financial Credit Institutions.

To make the request is very simple. We only have to fill out the request form on their website. It has enough fields, but in return we will not have to carry out any other paperwork. We must be of legal age and have a debit card associated with a Spanish bank account, we will not need payroll or guarantees of any kind. If the answer is yes, in less than an hour we will receive the money in our bank account and we will be able to use it immediately.

Remember that the use of these quick credits should be done occasionally for specific moments of need. They should not be used to get fast money on a regular basis as the associated costs are high. For larger amounts and cheaper loans, it is convenient to go to personal loans offered by financial institutions.