All kinds of bank loans so as not to fool

All kinds of bank loans so as not to fool

All kinds of bank loans so as not to fool

Loans

Loans are defined as a written agreement between a group of parties, including the transfer of ownership of something from the first party to the second party, in exchange for the obligation to pay it over a predetermined period of time. The loan is repaid on the basis of funds called The name of the lump sum, with a specific date called the due date, where the first party must be provided with a certain amount of the amount of money, and both parties may be ordinary persons, service, commercial, or financial institutions.


Loans are also defined as a type of lending provided to persons; based on their application, they indicate their desire to obtain the loan, which includes a promise to repay it during a fixed and agreed period. [2] Other loan definitions are a financial amount, or A particular thing is given to someone, in return for the return of that amount or the value of the item provided in specific batches, including the return of the full value, or the addition of an additional amount, called financial interest [3].




Types of loans

Loans have different types, each of which has a specific function and purpose, which achieve the required loans in the most appropriate way. The following are the most important types of loans:




Personal loans

Personal loans are one of the most common types of loans offered by financial institutions, specifically banks. These loans are often a sum of money in advance for individuals, in exchange for providing a range of guarantees to the bank that will provide the loan. For the value of non-current assets, for example: title deeds of buildings, land or vehicles, so as to guarantee the bank's right to obtain the value of the loan if it is not obligated to pay it during the time period allotted.


Despite the advantages offered by personal loans to individuals, it suffers from the problem of adding excess financial value to the original value of the loan. This value is a kind of profit achieved by the bank. It is a percentage calculated monthly or annually on the original value of the loan. Payment of dues, or depending on the terms declared by the bank in the loan contract. [4]




credit cards

Credit cards are a type of loan, linked to the existence of a bank account for the cardholder, and each credit card a certain ceiling of money, allows the holder to pay money from them, and pay the amount of the total credit card at a later date of maturity, and banks agree to grant individuals cards Credit in a short period of time often, but depends on the use of a high interest rate compared to personal loans; the credit card interest rate is twice the interest rate on the personal loan. [4]


Loan definition

Loans by degree of guarantee

This type of loan is divided into two parts, namely: [5]
• Secured loans: loans that must be given a certain guarantee to the grantor, and the loan is not given without the guarantee; which is a guaranteed way to collect the financial value by controlling and controlling it; in order to restore the value of the loan.
• Unsecured loans: Loans that do not rely on collateral, but are offset by a high rate of interest on the total value of the loan. Through the use of judicial means and methods.




Real estate loans

Real estate loans are the loans provided by the bank in exchange for a mortgage; that is, the property of the value of the loan remains mortgaged to the bank, until the borrower pays the owner of the property the full value of the loan; so that the mortgaged property moves from the ownership of the bank and becomes the private legal property of the owner, Officially based on a waiver provided by the bank. The idea of ​​mortgages has helped many people to buy homes and apartments, relying on the installment of their value through various commercial banks, which offer many financial ideas, in order to encourage individuals to buy property through them. [5]




Loans by Duration

The loans are divided by period of time into three sections, namely: [6]
• Short-term loans: loans that include simple commitments, individuals get some things to buy, or low-value payments; the repayment period for these loans is less than one fiscal year. Examples include: Cash from the bank; to buy goods, or to pay some of the accumulated bills to merchants.
• Medium-term loans: loans that are based on medium-term financing, ranging from one to five years. Individuals often use this type of loan; to buy cars, home furniture, personal office equipment, and other Other things.
• Long-term loans: loans that are based on the purchase of high-priced items; their repayment period may be as long as 10 years, and usually include loans offered for properties such as land, houses, and other real estate; It has many legal obligations, which contribute to guaranteeing the rights of all loan parties.




Characteristics of loans

Loans generally have a range of characteristics: [6]
• Period of time ": the period during which the loan is extended to individuals or companies, and is approved