Aug 29, 2022
In Business Forum
A loan is money, valuables or any intangible goods that are transferred by the owner (creditor) for temporary use to another person under certain conditions. The essence of the loan is to productively use unused material and financial resources. Mandatory conditions for determining the fact of lending are: mandatory return of the so-called "loan body" to the lender; there are clear deadlines when the borrower must repay the loan; the availability of loan interest, which is a specific payment for the temporary use of the transferred property. If you decide to take out a loan, then I recommend looking at a company like Money Mart, they have excellent credit conditions. Based on the amount of interest on the loan, there are three main forms of credit: with a positive rate, an interest-free loan and a loan with a negative interest rate (charged, for example, from the owner of the deposit by the bank). There is also another classification according to the forms of credit. Historically, a loan could be issued not only with money, but also with other valuables, so three forms of loans can also be distinguished: a cash loan, in which the lender issues money to the borrower for a certain period, and the borrower, in turn, undertakes to return them with payment of the interest due for using the loan; commodity, in which the lender transfers a certain product (for example, industrial equipment, animals) to the borrower for use with deferred payment, while the loan is repaid with a similar product with a percentage that may not be expressed in monetary terms; this form of lending historically arose first, and is now practiced less often; a mixed form in which the lender provides the borrower with goods (for example, household appliances, a car), and the borrower further covers their cost and interest on the loan in monetary terms.