2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Today, banks offer many different loan programs. Loans can be issued to support small businesses and for other purposes. Nowadays, most people have a bank loan. Types of loans that are most popular among the population: mortgage, consumer, car loans and credit cards.
Most expensive loans
There is an opinion that the most expensive loans are consumer and credit cards. This is due to the fact that the commission on them is much higher, in general, it can reach up to 50% per annum. However, the most expensive loan is a mortgage. The overpayment will amount to hundreds and even millions of rubles. But despite such conditions, there are many applicants who would like to take such a bank loan. We will discuss the types of loans in more detail below.
Consumer credit
The most popular among the population. Often people take it to purchase large household appliances: a refrigerator, a TV, a washing machine, etc. Also, thanks to it, you can pay for services in other companies, for example, purchase a ticket at a travel agency. Loan terms range from a few months to a year. It is divided into two categories: targeted and non-targeted lending. For example, a customer needs to purchase a refrigerator. He comes to the store, chooses the product he needs and the bank that gives him a targeted loan.
The second type of loan is issued by the bank itself. The client draws up a contract, takes the required amount and spends the money at his discretion. Next, the borrower pays a fixed amount to the bank every month.
Mortgage loan
Mortgage loan is issued for the purchase of real estate. Acquired housing may be secondary or located in new buildings. The loan repayment guarantee is the purchased housing or other real estate owned by the borrower. The bank providing this service must pay the first installment, which is 10% of the total amount. In addition, the borrower will need to insure the acquired property and their own he alth. All financial costs will be covered by the borrower. Mortgage loan repayment terms range from 10 to 30 years.
Car loan
A car loan is issued for the purpose of purchasing a new or used car. In this case, the borrower will need to insure their own he alth and cars under the CASCO program. Loan repayment terms - several months or more.
Credit card
The credit card is a very convenient payment system and is very popular withof many people. It can be used to pay for purchases in the store. The bank transfers money to this card. The usefulness of a credit card is that you can make any purchases without having financial resources. But there is also a significant drawback - it is a very high interest rate. In case of delay in payment, serious pen alties will follow.
Pawnshop loan
In this case, a certain amount is issued when pledging property, such as a car. The main disadvantage of such a loan is a short repayment period.
Commercial loan for small businesses
Commercial loan is a direct exchange between two organizations. The first organization issues money, and the second provides a product or service for them. Such a loan is the best option for financial support for small businesses.
Small business lending is most often done through commercial credit. This type of loan does not apply to classic loans issued by a bank. The issuance of such a loan can be carried out between commercial organizations. The main essence of the loan is that one organization gives money to another for a product or service, while both parties sign an agreement and contract. For example, one company sells another 20 tons of metal. The cost of one ton is 4000 rubles. According to the terms of the agreement, repayment will be made 7 months after the conclusion of the transaction. In the event of a delay, the organization that receivedloan, is obliged to pay an additional 5% of the amount of metal sold every month.
Features of a commercial loan
Not only buyers, but also sellers can act as lenders. In the first case, the buyer pays a certain amount of money for a commercial loan. This is an advance payment for a certain product or service. If the seller acts as a lender, then when issuing a loan, the period for which the buyer is obliged to repay the debt is calculated. It is also possible to repay the loan in installments. But in this case, the interest rate will be provided.
The main advantage of a commercial loan is the percentage, which is much lower than in conventional banks. The advantages include the fact that a commercial loan is the satisfaction of the needs of two parties at once. The buyer is given the opportunity to purchase exactly the goods for which he cannot pay immediately. And the seller will replenish the customer base. It should be noted that the interest rate is already included in the price of the goods. An organization can both offer loans and receive them. This fact makes it possible to significantly save financial costs. It is thanks to this that lending to small businesses occurs on very favorable terms.
The main disadvantages include the seller's limited inventory. And therefore, in order to expand their capabilities, organizations often use checks and bills when calculating. There is also a certain risk that the buyer may simply go bankrupt anddo not repay the loan on time. A significant disadvantage is the short repayment period of the loan. But some organizations may provide their customers with deferred payment.
As for the interest rate, in this case it is negotiated with each buyer individually. If the contract states that the lender provides the borrower not with money, but with things, then the interest rate is excluded. If the borrower violated the loan agreement, he is obliged to pay a fine. The amount of the fine is also calculated individually. If the contract does not provide for a fixed interest rate, then the refinancing rate is used. If the borrower does not want to agree on an interest rate, then he can take out a similar loan from a commercial bank.
Types of commercial loans
A commercial loan is a type of loan that is divided into several categories: with a fixed repayment period, payment after the sale of all goods, an open account. In the latter case, the organization receives a loan in order to repay the previous one. It is issued only to those organizations that have been cooperating with each other for a long time.
What other types of commercial loans are there? There is also a bill of exchange loan, which provides for the issuance of special bill of exchange documents. According to these documents, the borrower is obliged to pay the organization a certain amount and within the agreed period. If there is a sale of a new product and it is impossible to predict the demand for it, then such a category of credit as consignment is used. In this case, the buyer repays the loan only after the sale of all goods. Otherwise, the product will be returned to the organization that provided the loan.
There is another category of commercial credit - seasonal. The manufacturer of products can save on warehousing and storage, and the buyer can profitably sell the goods during the seasonal sale. If the buyer repays the loan on time, then a discount may be provided for him. Most often it is 1-3%.
Agreement
Very often, a commercial loan agreement is drawn up by those who are engaged in entrepreneurial activities. In order to make the best use of the terms of the loan, it is necessary to draw up an agreement correctly. If the terms of the loan are inaccurately spelled out in the agreement, it will be very difficult to collect payment from the organization for using a commercial loan. To avoid this, the following rules should be observed:
- Firstly, if the contract provides for a deferred payment, then it is necessary to indicate the charging by the creditor organization from the borrower of a fee for providing a commercial loan.
- Secondly, you should specify the amount of payment, and on what conditions it will be made. It can be annual or daily and will depend on the amount provided.
- Third, it is very important that the clause with the terms of the loan in the contract is located after the section on the responsibility of the parties. It is also worth noting that the fee for using the loan is not a measure of responsibility. If the terms of the loan are in the section on the responsibility of the parties, then inin the event of litigation, this item will be perceived as a pen alty for payment. As a result, it may be reduced or the court may refuse to pay it.
- Fourth, a very important point in the contract is that payment for the use of a commercial loan will begin from the moment certain works are completed or the goods are shipped, and not from the moment of delay in payment. If this clause is violated, the court will set a hearing for the payment of a pen alty.
Based on the above, an example can be given. The parties signed an agreement on the terms of deferred payment. This means that the supplier has the right to charge a certain amount from the buyer for the use of commercial credit. The payment for the loan starts from the moment the goods are sold and until the specified repayment period. The interest rate is 0.1% of the value of the goods sold and is charged for each day the loan is used. In case of violation of contractual obligations, this fee is not a measure of responsibility, it is a payment for the use of the loan.
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