Loan and loan - what is the difference and what is more profitable? Loan agreement
Do you know the situation when there is no time to save money, but something urgently needs to be bought. Fortunately, we live in the twenty-first century, and an organization such as a bank is already working and helping people to acquire the benefits of life. Here you can arrange any cash loan.
In this article, we note the question of what is the difference between a loan and a loan.
What is a loan?
A loan is the amount of money that a bank issues to a person or organization for a certain period, at a certain percentage. Hence we conclude that it cannot be free of charge and issued for an indefinite period.
Urgency, payment, repayment - three principles of lending. The relationship of the borrower and financial organization can be a leasing, commercial loans, loans, or factoring or a bank loan.
Types of loans
There are three types of loans:
- Cash loan. The bank at the same time issued to the borrower the amount of money that he must pay at the expiration of the term in a larger volume than he previously took, including interest.The most common type of loan, which used every second.
- Credit commodity. The principle is the same as that of money. Only now the borrower takes not finances, but some goods, which he must return upon expiration in a greater volume than he took before, including interest.
- Mixed - both goods and cash are involved in transactions.
Types of loans
Also loans are divided into various types:
- Mortgage - to buy a home.
- Commercial - in order to defer any payment.
- State - the state itself issues jur. and nat. individuals loans at a fixed interest.
- Consumer - for the purchase by the borrower of any product.
- Banking - for operations directly with money.
So, loan and credit - what is the difference between these concepts? We continue to understand.
Little about the loan
We note several fundamental differences:
- The civil code and financial legislation regulate the relationship between the person who receives the loan and the organization of credit. Creditor - a legal entity with a license of the Central Bank of the Russian Federation for the right to carry out the relevant operations.
- A loan is a completely different matter - it can be issued either by a legal entity or by an individual.
- A loan is always just some amount of money.
- Regardless of the amount, time of loan repayment and interest, the loan agreement is obligatory.
- It is possible to get a loan on preferential terms.
If the borrower refuses to repay the loan, the lender has the right through the court to demand its repayment along with all fines. Lenders may, not without reason, demand from the borrower a guarantee from a third party or a pledge of property.
In the nineties, loans and barter deals became extremely popular. A loan is the transfer by the lender of any property to the loan recipient. Its main difference from a loan is the non-obligation of a paid basis.
Lender - the owner who undertakes to transfer to the loan recipient by agreement the property for free temporary use. Borrower - a party that, by agreement, receives property for free temporary use. It is important to remember that in this case he does not rent out any property from the lender, but lends it.
This type of loan does not have such principles as urgency and payment, it has only one, but the decisive principle - repayment.
Under the loan agreement,one subject undertakes to return the gratuitous use of another subject to him in the same condition as he acquired.
Types of loan
Loan agreements are of two types:
- Consensual - the parties decide that the lender must transfer the thing to the loan recipient from the moment of the conclusion of the contract.
- Real - the parties decide that the contract is made from the moment when the lender directly transferred the item to the loan recipient.
General requirements on the form of transactions govern the form of a loan agreement.
Basic principles of a loan
To distinguish a loan from a loan, pay attention to its principles.
- A loan can be paid and free of charge.
- The debt on it is paid not in parts, as in a loan, but at the same time and in full.
A loan concept is broader than a loan and has its own types:
- Property Loan -transfer of the property itself.
- Consumer loan - for the purchase of any material goods.
- A loan in a bank is a loan in a financial institution, where a contract of such a loan is obligatory.
We have analyzed what is the difference between a loan and a loan, but there is something that unites them.
Let's sum up
Property (if we are talking about a loan) or loan funds must be returned. When lending, the borrower must pay not only the full amount, but also interest with a commission. With a loan - remuneration (possibly) in cash. As a result, there remains only one characteristic - the reflexivity.
Having examined this question in detail, you can begin to doubt: a loan or a loan - which is better? Every opinion is subjective, and it is worth paying attention to the purpose for which the borrower takes a loan. If he needs money, not all lenders will be able to help him, as some are not engaged in providing this service. Banks issue loans that relate exclusively to money. You can simply personally get some finances in your hands, or you can arrange them for the purchase of furniture, equipment and other goods.
What is the difference between a loan and a loan? Real estate and movable property may well be taken through a loan without paying the finances for them. The profitability of a financial transaction depends on each case, there is no definite course of events that would fit all borrowers. So, if you want to borrow a sum of money, then by taking a loan, you will have to pay a premium for it to the lender.When you pay the loan, of course, the borrower pays a fixed percentage constantly until he repays the full amount.
What is the difference between a loan and a loan? Here you should do several mathematical operations, compare what will be less, interest on a loan or premium to the lender, and choose the option that will be more profitable. If the lender has not only money, but also the necessary things to the recipient (equipment, cars, other things) it will be more rational to take out a loan. The lender's premium may be paid by barter, which in some cases is also much more profitable. For example, the borrower needs specialized vehicles for agriculture and at the end of use, he will return the equipment to the lender, and as a premium he will give him some quantity of products produced.
But if you need only finance, then take a loan, since the premium is usually much higher than loan payments, which you, by the way, can reduce by paying a fixed amount ahead of time. Weigh all the pros and cons and do not be afraid to borrow, especially since now you know well what is the difference between a loan and a loan or a loan.