Hello, in this article we are going to talk about money loans. At first let’s figure out what the term “loan” means.

What is a loan? A loan is an agreement concluded between a lender and a borrower to provide funds to the borrower in the form of a loan on certain terms. Between the creditor and the borrower, an agreement is entered into, according to which the creditor provides funds (loan) to the borrower in a predetermined amount, for a specified term, and for the remuneration of the creditor. The loan can be provided with collateral, that is, a pledge or without it, with or without a guarantee, it is considered by the credit institution in each particular case. The loan is provided for different purposes and under different conditions for both individuals and businesses. A loan may be granted, for example, for the purchase of automobiles, real estate, household appliances and other goods and services, as well as for any of your purposes.

Loans can have various forms.

Consumer credit is a loan that is provided directly to private individuals (households). Objects of lending in this case are goods that are purchased by a private individual, that is, consumer purposes. Such goods can be used for household appliances, tools, furniture and so on. This type of loan is characterized by high interest rates and low sums.

Car loan - a loan that is provided to private individuals and legal entities directly for the purchase of automotive equipment. The objects of lending in this case are automotive engineering. A loan of this type is characterized by lower interest rates and higher sums.

Educational loan is a loan granted directly to private individuals for education. The objects of lending in this case are the tuition fees for individuals in an educational institution on a non-budget basis (school, institute, university, college and other educational institutions). The loan of this type is characterized by even lower interest rates. Usually, an additional payment is made by the state.

Mortgage is a loan provided both to individuals and legal entities directly for the purchase of real estate. Objects of lending in this case are real estate. The loan of this type is characterized by the lowest interest rates, higher sums and longer lending terms. This type of loan is the most reliable.

Overdraft is a loan provided by the bank for payment of settlement documents in case of insufficiency or absence of funds on the account of the borrower. In this case, the bank will write off funds from the borrower's current account in full, that is, it automatically provides a loan to the borrower for an amount that exceeds the balance. Repayment of overdraft is the funds that come to the account of the borrower.