Moni2402
Active member
It is important to know that a loan, the client (borrower) receives an amount of money that he has previously requested. The amount of this loan must be repaid, together with the accrued interest, within the period of time previously agreed with the financial institution (lender). The loan payment is normally made through regular installments (monthly, quarterly, semi-annual ...) throughout that term.
Types of loans according to the maturity term:
-Short-term loans.
-Loans granted for a maximum term of one year.
-Medium-term loans.
-Loans in which the maturity ranges between one year and three years.
-Long-term loans.
-Loans whose repayment term is greater than three years.
Types of loans according to destination or purpose:
-Personal loans: these loans are used to finance specific needs at a specific time. They are generally small amounts that are used to finance unexpected expenses, travel, repairs, weddings, etc.
-Consumer loans: consumer loans are used to finance durable consumer goods such as cars, furniture or appliances.
Both personal and consumer loans are typically smaller loans with a relatively short repayment term.
-Loans for studies: this type of loan is very popular in the United Kingdom and the United States, although its use is becoming widespread. These are loans intended to finance university tuitions, graduate studies or masters degrees. The interest rates on student loans are cheaper than those on personal loans.
-Mortgage loans: in these loans, an entity leaves money based on a real guarantee, which consists of a mortgage on a property (home, garage, storage room, premises, plot, etc). These are medium-long-term loans (between 15 and 30 years). We can find different types of mortgage loans depending on the interest rate (fixed, variable or mixed), the type of installment we pay or the type of currency in which the loan is paid (normal or in foreign currency).
-Business loans: business loans are one of the most used ways by companies to obtain financing, whether for production, investment in fixed assets, for expansion purposes or for the execution of different projects.
Types of loans according to the maturity term:
-Short-term loans.
-Loans granted for a maximum term of one year.
-Medium-term loans.
-Loans in which the maturity ranges between one year and three years.
-Long-term loans.
-Loans whose repayment term is greater than three years.
Types of loans according to destination or purpose:
-Personal loans: these loans are used to finance specific needs at a specific time. They are generally small amounts that are used to finance unexpected expenses, travel, repairs, weddings, etc.
-Consumer loans: consumer loans are used to finance durable consumer goods such as cars, furniture or appliances.
Both personal and consumer loans are typically smaller loans with a relatively short repayment term.
-Loans for studies: this type of loan is very popular in the United Kingdom and the United States, although its use is becoming widespread. These are loans intended to finance university tuitions, graduate studies or masters degrees. The interest rates on student loans are cheaper than those on personal loans.
-Mortgage loans: in these loans, an entity leaves money based on a real guarantee, which consists of a mortgage on a property (home, garage, storage room, premises, plot, etc). These are medium-long-term loans (between 15 and 30 years). We can find different types of mortgage loans depending on the interest rate (fixed, variable or mixed), the type of installment we pay or the type of currency in which the loan is paid (normal or in foreign currency).
-Business loans: business loans are one of the most used ways by companies to obtain financing, whether for production, investment in fixed assets, for expansion purposes or for the execution of different projects.
