What is the difference between loans and loans – Money24

What is the difference between loans and loans

difference between loans and loans It is almost a fact that many times you have heard about credits and loans and believe that these are two products that are really the same, especially for all those users who need urgent money without papers, as they tend to confuse both terms , but do not worry today we will know a little more about what is the essential difference between the two.

It should be noted that the vast majority of people believe that a loan is the same as a new loan, since even the advisors also tend to confuse their same clientele, making them see that both are the same, but they are totally different financial products, as well It is very important to start with the concepts that each of them has to have a clear idea of each of them in order to know what the differences are.

Difference between credits and loans

The concept of loan

It is very important to know before what operations are treated individually to differentiate them, so the loan is one in which an entity that can be a bank loan or individual staff delivers a certain amount of money in a fixed manner to another entity or individual person.

It states that you must have an agreement between the parties where the beneficiary will be responsible for returning the amount of money plus interest and commissions that are generated within a certain period of time. Said amortization is made on a monthly basis in most cases, that is to say, they are quotas that are pre-fixed or it can be only a payment at the end of the time stipulated. Two of the most common immediate loans are personal loans and mortgages, the first of which is when a person can pay a large amount of a good, such as a car, while in the second it is to have access to a home, that is to say, that their destinations are very well defined.

The concept of credit

When a person needs urgent money without papers he goes to a credit, so before being able to request it, he must know the concept of this financial product, so it is an amount of money that has a fixed limit that an entity in The vast majority of cases banks make available to a customer that can be a company or also someone particular.

It should be noted that the great difference between both products is that unlike the loan in this is not delivered all the amount of cash to the customer if it can not be used moderately and according to all the needs of people, all during a period that is also limited.

Two of the clear examples that can be had of this product are the credit cards and the bank accounts, in which both have a fixed amount of money, but that will not use immediately the whole, in addition, it can be paid month a month an exact amount of money.

The differences between credit and loan

If your person is in the dilemma of … I need urgent money without papers , one of the best options without a doubt is the credits, since they can get the money without much formality, since one of the big differences that exist with the loans, for example, is that the term for which it was granted can be renewed, extended and even the same can be automatic. For example, if the client returns part of the loan, he/she will be able to count on that amount again, while in the loan the necessary amount will have to be returned.

On the other hand, it is found that there are very marked differences between interest rates since interest on loans is much higher than loans, so everything will depend on the needs of each client.

 

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