Bank loans come to our aid in a situation when an unforeseen expenditure appears on our path or we have planned an important investment, and the funds to finance it in the household budget run out. In simple terms, a loan is a contract between a consumer and a bank that undertakes to make available the agreed amount of money for an agreed period. However, the borrower is obliged by contract to use the funds received according to the conditions contained therein.
The types of loans that occur in the banking system can be classified in terms of repayment date, currency, withdrawal form, etc.
To choose the right loan, go to the bank or financial advisor.
It is very important to acquire basic knowledge that will show us the types of loans and choose the appropriate financing method for your financial situation.
Among the diversified and extensive offers of banks, five basic loans can be distinguished:
– mortgage – granted for the implementation of construction investments or for the purchase of real estate. The contract itself is characterized by complex elements and conditions, and the repayment period can be up to several dozen years,
– consumer loan – granted to meet the current needs of the borrower, e.g. a car, household appliances, etc. The repayment period in this case is from several months to several years,
– investment loan – usually intended for the implementation of the borrower’s investment projects which are aimed at increasing his assets, e.g. purchase of shares,
– consolidation loan – granted for combining several liabilities into one, which allows reducing the monthly installment and then repaying previously drawn loans,
– credit card – this is a liability linked to an individual bank account and credit limit set by the bank.
Of course, there are other breakdowns and types of bank loans depending on which breakdown criterion will be taken into account.