We live in a world of consumerism. With modern technologies at our disposal, we are able to purchase products and services without moving from place, while fulfilling dreams or achieving goals. Most of us can afford it with loans or credits. What are these products and how to choose the right one? We answer below.
What is a loan?
The loan agreement is regulated by the Civil Code. The loan is a contract or it can even be called a peculiar operation. Two interested parties usually enter into such a contract. One is for the lender and one is for the borrower. The loan agreement is concluded as follows: the lender transfers money or a specific subject to the borrower. The borrower is now obliged to return the loan subject within a specified period. The loan can be granted by both an institution and a natural person. It is less formal than credit and more often used in private relations.
What is a loan?
The loan is governed by the banking applause. We are dealing here with a loan agreement. Pursuant to it, the bank undertakes to provide the borrower with a certain amount of cash to freely dispose of, for the period specified in the contract. An important element of the loan agreement is to indicate the purpose of the loan for a predetermined purpose. The borrower undertakes that he will use the funds transferred to him under the conditions specified in the contract. In addition, it is required to return the funds together with interest and commission for its granting. Only a bank can grant a loan.
What are the differences between a loan and a credit?
In colloquial language, it may happen that the terms loan and credit are used interchangeably. But in fact, these are two different solutions that govern a different legal basis and the principles on which they are provided. The subject of the loan agreement can be both money and things (which must be specified as to the species). However, an item cannot be marked as to its identity. As mentioned above, loans can be granted by natural persons or legal entities (including banks). It is important that the borrower does not have to specify the purpose for which he takes out the loan. The parties also agree, depending on the relationship between them, whether the loan will be provided free or on a commission basis. The Civil Code does not specify this. However, the loan can be secured by a surety, promissory note, pledge (various types) or voluntary submission to enforcement. We already know what a loan agreement is and on what general conditions it is based. Let’s add that it must be in writing – otherwise it will not be valid. Unlike a loan, which can also be concluded orally. The situation of the subject of the loan agreement is also different – it can only be a certain amount of money, precisely indicated in the contract and will always be payable (interest together with capital installments). In addition, the bank will monitor what the funds are spent on and whether they coincide with the intended purpose. The contract will usually be secured by a mortgage, bank guarantee or letter of credit.
Who should not incur financial obligations?
Loans and credit are two different solutions, but each has its supporters. We like to use them, because thanks to them we can achieve goals and make dreams come true. However, one should remember the basic rule, namely to borrow as much as we can give back. The worst solution is to take out a loan to pay back the previous one, this leads to the accumulation of liabilities, escalation of interest and at some point we can find ourselves in the so-called a spiral of debt, from which it is very difficult to get out. Remember to read the terms of the contracts carefully and ask about the cost of taking out the loan or borrowing. Each uncertainty resolved gives us confidence that we will know enough to make commitments tailored to our financial situation, to feel safe with the budget we operate every month.
Where to look for a good loan or credit?
Good loan or credit solutions are widely available on the market today. We can use traditional outlets providing financial products or if we like modern solutions, just look for information on loan services on the Internet.
But how to find a solution carefully selected to our capabilities, and in addition a safe one that will not lead us into a spiral of debt? We suggest starting with the website, whose formula will allow you to learn in detail, step by step, products that are:
- completely available online
- without leaving home
- with a minimum of formalities
By completing the simple form, we will go through a quick verification process so that the website efficiently gives us access to individually selected loan or credit offers. We will save a lot of time that you have to spend on collecting documents and waiting in queues for a traditional loan or credit.