Briefly About Loans & Mortgages

Commodity loan form involves the transfer of a temporary use specific things, certain generic characteristics. This form historically existed before the advent of monetary relations. However, among creditman are present and those citizens who have seen the Soviet power, with its queues, coupons and deficiencies of essential household goods. It is very often the emotions come across and the young people that get consumer loans only to show off to friends expensive smartphone or tablet and then be repaid over 3-5 years credit for a toy, the activities of which they do not even use half. As practice shows, in anticipation of the holiday euphoria people try to do everything faster than usual, which is why few of us can detect in interest-free loans huge fees or existence insurance policies. According to financial analysts one of the most popular tricks of financial institutions advertising their own loan products are so-called interest-free loans that are issued to potential borrowers in times of celebrations such as new year or Christmas to buy expensive gifts to their relatives or loved ones. For example, if representatives of the credit institution's opinion, the loan was obtained by fraud, and they can prove it in court, the borrower may be required to pay the full amount of the debt immediately. As practice shows, in anticipation of the holiday euphoria people try to do everything faster than usual, which is why few of us can detect in interest-free loans huge fees or existence insurance policies. However, among creditman are present and those citizens who have seen the Soviet power, with its queues, coupons and deficiencies of essential household goods. If the potential borrower has decided to purchase a vacation property in this way, a potential borrower is to start looking not financial institutions, and reputable construction company that is willing to provide such services. Unfortunately, justice is not a legal concept that what is called "the matter will not sew." Another example is when a borrower cannot demand cancellation of the contract, although such a desire it occurs and relates to floating interest rates. However, all the above factors are not so easy, so many mortgage borrowers also fall into the group of those who struck creditomania. If the potential borrower has decided to purchase a vacation property in this way, a potential borrower is to start looking not financial institutions, and reputable construction company that is willing to provide such services. However, should not be confused incomplete payment of borrowed funds with a single payment, which is still practiced by some banks. The debts of the testator, regardless of whether the loan is from a Bank or other debt obligation, called passive part of the inheritance.

Cash loan form involves the transfer for temporary use of a specified amount of money. This form of credit is actively used by all subjects of economic relations (government, enterprises, individuals) within the country and foreign economic turnover. Cash loan no equivalent commodity-money exchange, and is the transmission cost for temporary use on condition of repayment over time and, as a rule, the payment of interest for the use of her.

Cash is the predominant form in modern conditions of economy. The Bank approves his application, but includes in the credit agreement a lump sum payment for the issuance of money. And it's perfectly legal, but completely unfair. Because of problems with re-registration of mortgage, you will need to obtain the consent of the Bank, your Bank is unlikely to agree to repay such a large loan on your own risk, not having the right collateral.

  • Commodity loan
  • Cash loan
  • Mixed form of a loan

Credit plays an important role in the regulation of the magnitude of the funds required for the Commission of economic activity. Thanks to the loan enterprises have at any time such amount of cash that is required for normal operation.