Are you planning to apply for a bank loan? You should first know which type of loan is right for you before deciding which loan program you will take. There are many types of loans in banks, both general lending, by their usability properties and other specific loans.
If you have often applied for a loan and smoothly in the process of payment, it will be easier for you to get a loan next. if you want a loan nominal larger than the previous course you will be simplified, even the bank will offer other loan programs for you. Here are some types of bank loans alias type of bank credit in general, as an illustration:
Loans or credits based on repayment period:
- Short Term Credit
In this type of loan, the bank gives a repayment time of no more than a year. Usually the borrowers who take this credit take this credit to build micro-to medium-sized businesses.
- Medium Term Loans
In this type of loan, the bank provides a longer repayment period than the short-term loan. Usually a period of 1 year to 3 years.
- Long Term Credit
bank loans In this type of loan, the term given by the bank to the debtor is long enough, that is more than 3 years. This type of loan is usually used to work on large projects, whose capital turnover also requires a considerable tempo. For example apartment investment projects, road construction, office buildings, and others.In addition, there are also types of loans granted based on the nature of their use. As we often hear when offered loans from banks or non-bank financial institutions, sometimes we hear the mortgage program, or SME Credit, and so on.
Loans based on the nature of their use include:
this type of loan is judged on the nature of the utility of a loan
From the name alone we already know the function of this type of loan. loans or credit types are used by customers who want to have valuable assets such as houses, motor vehicles and so forth. The bank usually always impose strict policy, that is based on the data of credit history of customers, in determining whether the borrowing customer has the feasibility to gain trust from the bank.
Consumer loan programs issued by banks, generally divided into:
- Home Ownership Loan
Including the type of loan the most popular community. Home ownership is everyone’s dream. Moreover, houses in big cities are increasingly expensive and difficult to obtain. While Home Loan provides options for us to have a home with the types that match what we want / need.
- Non Home Loan
In this type of loan, customers apply for consumer loans in addition to home ownership. For example for the purchase of motor vehicles.
- Vehicle Credits
The bank provides this loan to the customer, with the consequence of the customer having to make the vehicle a guarantee, when the customer is unable to pay off the credit.
- Credit Card
Loans through the use of credit cards are the most common type of loan used by customers. Included in the category of Unsecured Loans, because customers are not required to pledge anything as a condition. The bank will verify applicant data on terms such as pay slips and office phone numbers.
- Multipurpose Loans
This type of loan requires assets such as land certificates or vehicle certificates as collateral.
Commercial Loan Credits
In contrast to the type of consumptive use of the loan, the Commercial Loan is given to an individual or a business entity to finance a business project. Later the proceeds of profits from the project will be used to pay the credit.
So this type of credit is divided according to the amount, namely:
- Micro Credit
- Small Business Loans
- Medium Business Loans
- Corporate Loans
In addition to bank loans based on repayment period and the nature of its use, there are many more types of loans issued by banks, as long as it still trusts customers. Of course the bank will continue to issue loan programs or credit pledge, because the bank’s finances will also increase with interest-repayment accompanied by interest.
As a customer and a borrower, you should be careful to manage the bank loan that has been disbursed, so that its use is effective and you are not stuck in a debt that is wrapped around. Of course more quickly pay off better debt.
That’s the explanation Types of Bank loans or credits, it’s important to know that as a consideration you take the offered loan program. hopefully this article useful