Types of online loans
Not all credits are equivalent. There are a variety of types of advances on the market, each one was for a buyer profile.
Would you like to avoid the topic to find out what financing alternatives you have?
We could organize the credits according to their objective, the certification, the development time frame, the cost of the loan or the type of instrumentation, among twelve classifications ...
In any case, as a general rule, they can all be incorporated into two general classifications: Individual Advances and Home Loan Advances
Types of credits: individual advances
Individual credits are those that are mentioned to support a particular need at a specific time.
For example, the purchase of a vehicle, a change of home, a wedding, a breakdown or some other sudden circumstance.
The shared factor is financing a particular need when adequate liquidity cannot be accessed to cover this cost with investment funds.
There are two fundamental types of loans close to home : buyer advances and substitute advances.
In the primary case, the buyer's merchandise that normally has a durable character is financed.
The most successive is the vehicle, although the credits of the buyers are also granted to buy home furnishings , machines or the like.
With regard to study credits, these are typically extraordinary advances for gathering students so they can start thinking about college , pay for a graduate degree, or complete the degree in a foreign nation.
They are exceptionally personalized credits that some youth use when they do not have grants or allow consideration.
When in doubt, the cash measure mentioned in an individual loan is not high.
The arrival time frame is also typically small, eight years more extreme.
The arrival guarantee is close to home (a guarantee is mentioned from time to time, although it is not normal) and the strategies to obtain it are not overstated.
Types of loans: home loans
The second main category of loans is made up of mortgage loans, which are loans to finance the purchase of a home, although they are also sometimes used to start a business.
The main difference with personal loans is that the guarantee is not only personal, but also real.
This means that the property acts as a guarantee of payment, so in the event that you cannot pay the debt, the house will become the bank.
The amount of home loans is considerably higher than that of personal loans.
Of course, the return period is also longer.
Many banks grant mortgages to pay for up to 40 years. 40 years! Who knows what it will be like in 40 years? It's crazy.
While in the case of personal loans, the interest rate is always fixed, with mortgage loans there are more alternatives: fixed rate (always the same interest rate), variable rate (the interest rate is based on some index, such as Euribor ) or mixed rate (the first years the rate is fixed and the following variable).
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