A loan is a temporary transfer of material or financial resources to third parties against payment of interest on the loan. Confidence in the ability and willingness to meet obligations (repayment or cover obligation (revaluation)) (credit rating). It is well known that banks are not really having a lot of advertising slogans. One bank advertises a couch loan, the other an instant loan and the third a “first” fully digital loan. The term interest derives from the Latin “census” and means asset estimation.
And what is a payday loan? credit definition
In the case of a loan, the lender (= creditor) lends money to the borrower (= debtor). It is usually concluded for a certain period of time, during which the borrowed loan is repaid to the payee. This can take place in regular tranches that are either the same for the entire duration (= annuity) or consist of a fixed repayment amount plus a steadily decreasing interest payment due to the falling debt amount.
The maturity loans are repaid at the end of the current period in a single amount. In addition to the loan amount, the borrower must pay interest, which is also arbitrary. However, this is usually determined and determined by the payee according to certain standards. The interest on the one hand provides a certain risk premium for the lender, since in the case of the insolvency of the debtor, the full amount of the loan is not reimbursed.
Here, the creditworthiness of the borrower is of great importance. In addition, a surplus for the lender should be generated at the end of the term of office. The granting of loans is a form of investment for him. The term “credit” comes from the Latin “credere”, which means “to believe”, but also “to trust”. The creditor relies on the creditor’s ability and willingness to repay the loan on the specified terms.
If the amounts are too high, the creditworthiness of the borrower is too low, the borrower can be given a security. This results in the security if the loan is not repaid as agreed. However, the realization, ie the purchase of security, means an extra effort that the lender would like to forego.
Check credit now! What kind of loans are there? Below you will find a selection of the most common credit types – with a mouse click on the respective subpages you will find further explanations and explanations.
Definition: What is a payday loan?
A loan is the timely provision of goods. The loan is usually associated with interest charges, ie the borrower has to make more repayments than he has received. The term credit comes from Latin verbs crédere, which means faith or faithfulness. The credit is on the one hand, the self-confidence in the willingness to pay after consultation and on time.
On the other hand, the loan itself is equivalent to cash or property, plant and equipment as well as accrual or credit. The paradox of a loan is: if you do not need it, you get it without difficulty. By contrast, the general term “having someone with credit” means having the feeling of trust.
Strictly speaking, that you are solvent and creditworthy. This credit rating is also referred to in criminal law (StGB 187) with regard to defamation, which can threaten the creditworthiness of persons. What is a loan for? How much do loans cost? When accepting a standard loan, a house bank or other lender grants a certain loan amount for a certain period at a fixed interest rate.
The borrower assumes the timely repayment of the loan (usually in monthly installments). The minimum age limit for loan agreements is 18 years. In addition, the principal bank checks whether the applicant is creditworthy and asks for the status of security (as a rule these are the three last-mentioned salary statements). You can influence the loan conditions (loan amount, interest rate).
In addition to the interest (nominal and effective interest), the distribution (amount and time), the monthly installment and the due date, further conditions for the repayment of the loan (eg special repayments) are recorded in the loan terms. What is the difference between loans and loans? In colloquial terms credit and credit are often used synonymously.
Both credit and credit refer to the temporary granting of cash. The borrower gets the ownership of the loan object and can freely use and consume the object or funds because they can not be returned in the same form (which would be absurd anyway in a money lending). The respective contract then governs the repayment or reimbursement type, the amount of the expenses (fees, interest) and the terms of the counterparty.
Loans are only a partial form of the loan or a loan option. Loans are a debt relationship between a lender and the borrower that governs the transfer for the use of funds or property for appropriate fees. Loans are also to be regarded as permanent obligations. In the case of contributions in kind, which are concluded for the lending of fungible objects according to 607 BGB, the thing – contrary to rents or leases – can be consumed by property transfer or even sold.
This also protects the lender against misuse and thus against the non-hedging of the loan. At this point we list the most common types of bonds :: The most common loan. A loan is the contractual transfer of funds or goods (property loans) or other objects from a lender to a borrower.
Otherwise, the refund is due upon termination of the contract.