English presentation: various forms of credits

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1. What is Credit?

It’s the loan of a sum of money granted by a bank to a customer. The amount is determined in advance, and is repaid inseveral installments, over a period and at a rate
Often we talk about consumer credit. And there are 2 forms of loan:

The first one is an affected credit

The money lent is exclusively used topurchase which have been mentioned to the banker. The destination of this money cannot be changed and the loan cannot be used for anything else. Often, the property concerned is used as collateral.• You pay off your credit if only you have purchased the thing you wanted to have. If you don’t buy it the credit is canceled. Oftenlly, this type of credit is offered on many point of sale and therates are generally higher than traditional personal loan. The funds are directly given to seller.

The second one is the unaffected loans

This means that the borrower does not justify the use ofthe funds. He can do whatever he wants with the money.
But in reality, the banker always wants to know, what the money will be employed for. The banker is the only judge and make what he wants, eventhe law don’t allow it.

2. The various forms of credit or loan

The personal loan.

It is a credit agreement for short, medium or long term. The maturity of the credit is a few months toseveral years and it is limited at 21 500 €. It‘s oftenlly used to defray the expenses of everyday life.

If you want to repay your debt in one time it’s possible, and without any supplementalcharge.

The Mortgage Credit

It is usually used to buy a house. This sort of credit is secured by a mortgage. It means that if can’t pay your debt, the bank will foreclose your house.

• Therevolving credit (also called revolving credit, revolving credit or cash reserve)

It is a borrowing method which allows a consumer to dispose freely and continuously for an amount money.
Every time...
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