Providing the credit — the conditions doing the creditor to more confident that the borrower will fulfill the obligations.
Types of loan on security:
- Poor. Them are loans without providing – unsecured loans without guarantors and guarantors.
- Partially provided. For example, if pledge covers only a part of the means necessary for repayment, or the guarantor (guarantor) warrants for payment only to a part of a debt.
- Provided. The pledge excluding loss of means by the creditor, bank guarantees or the guarantee of one, or several people – make terms for crediting more available.
On availability at a price How Many Types Of House Loans Are There distinguish several types of loan:
- Percentage. Receiving finance on credit, the debtor every period (monthly, quarterly, annually …) pays a part of a debt, and also percent for use of means. This type of loan is the most popular and is most widespread.
- Interest-free. Quite often the similar target credit for concrete purchase called by payment by installments meets. Its principle is a little changed – the relevant contract between bank and the seller, and percent is signed (sometimes very low) the seller pays. Almost always the seller compensates these percent by inflated price. In certain cases, the large seller himself becomes a creditor, and, selling goods by installments, is ready to wait a little with receiving money.
- With the fixed payment. The principle is simple – when receiving, partial or full repayment of the credit, the debtor is obliged to pay the corresponding fixed payment for use. Such transactions meet rather seldom.
The percentage credits depending on a rate are distinguished:
- Rollover. Those are called the credits without the fixed interest rate. Depending on fluctuations in the market, the rate can «float», i.e. have a wave mode. It is in most cases applied to the long-term credits.
- With the fixed interest rate. The loan is issued under a certain percent from delivery before the last payment.
- The mixed type. It contains the fixed interest rate (basis), and a changeable part.
The credits also differ on the purpose for which they are given:
- Target. The means received on credit are allowed to be spent only for the definite purpose stipulated in the credit agreement.
- Inappropriate. The debtor can spend the received money at own discretion.
The most popular How Many Types Of House Loans Are There target credits:
- On housing. The most widespread, undoubtedly, the mortgage when the bought housing acts as providing according to the loan is. The youth credit, with the facilitated conditions for debtors is sometimes issued. The housing credit which is not assuming the bought housing in the form of pledge is still rather widespread.
- Car loan — the loan for the car or the similar vehicle. As pledge the bought goods quite often act, doing terms of credit it is better. Also improve terms for crediting: a car insurance, life insurance and health of the borrower, receiving a salary into the account of creditor bank.
- Land. On purchase of the site for construction or conducting agricultural activity.
- Consumer. For purchases in modern large supermarkets, shops of the equipment it is possible to take the personal credit directly in a sale point. The experts who are quite often there can contact bank and issue usual or the express a consumer loan. The means received on credit automatically pay goods, and the consultant explains when and how to repay the debt.
- Educational. Is given to students, and also entrants who passed a competition for payment of training in HIGHER EDUCATION INSTITUTIONS, colleges, etc.
- Broker. For a turn of securities, the loan is issued to the exchange broker, providing are the bought papers.
- Others. The purposes which are not relating to listed, but coordinated and approved by the creditor.