What is a loan? How do you choose a loan?

 Credit card or collateral? Read it and you will understand

First of all, a loan is a loan from a bank or financial institution that is returned under certain conditions. Simply understood, it is borrowing money with interest.

So what are the ways?

Either take your own assets and apply to a bank or other financial services institution that can borrow money and pay interest. Either take their own credit information to apply. Loans are mainly divided into the following two kinds:credit loans, mortgage loans.

Often friends ask whether to use a credit loan or a mortgage loan? What is the difference between these two loans?

Here I analyze the difference between the two loans from 7 aspects such as the difference 自願醫保計劃and the way to facilitate your choice; credit, mortgage how to choose?

1、Loan method

Credit loan: no collateral is required, but it requires a good personal credit record, a stable job and income, and the ability to repay the loan

Mortgage: We need to provide valuable collateral that is recognized by commercial banks

2、Loan nature

Credit loan: credit loan. Mortgage loan: Credit (pledge) loan.

3、Loan collateral requirements

Credit loan: mainly depends on personal credit and income, so credit is very important.

Mortgage loan: requires a house, car and other valuables as collateral.

4 Loan amount

Credit loan:The amount can be directly related to personal economic income.私人分期貸款If we have a high personal income and a good credit situation as well, the credit line will be slightly higher.

Mortgage loan:The amount of mortgage is directly related to the valuation of the asset (real estate, car). The higher the value of the asset, the higher the limit.

5 、Loan Length

Credit loan: The borrowing period is shorter because it does not require guarantee and collateral and is relatively risky.

Mortgage: is a secured mortgage, low risk, large amount, so the loan term is longer.

6、Loan interest rate

Personal credit guarantee company exists with some risk.

Credit loan: the interest rate will be higher than the mortgage loan interest rate.

Mortgage loan: with security, the lender bears less risk, mortgage loan interest rate is relatively low.

7、Speed of disbursement

Credit:Compared to mortgage loans, the process of evaluation and mortgage is omitted. As long as the borrower meets the loan conditions and the procedures are complete, the loan can be approved and released as soon as possible.

Mortgage business loans: the preliminary development needs to be carried out to collect more information, the review work takes a long time, plus the mortgage notary and other links, so the lending speed is relatively slow. It is usually 2-3 weeks.

Conclusion: Which loan is preferred?

Based on the above comparison, you can choose the loan product that suits you. You need to see your advantages and of course, you need to meet your conditions.

Loans with lenient credit approval, fast disbursement, simple process, flexible use of funds, and low capital requirements can be preferred. Mortgage loans have low interest rates, long loan terms and high credit limits. It is suitable for borrowers with a large amount of capital, but also requires the borrower to provide valuable collateral.

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