Difference between loan and bank credit: which is the most convenient?
The loan sector of the ” personal loan ” type is increasing its business volumes exponentially. Many more Italians today decide to borrow this type to make their dreams come true or to get out of difficult situations. in this case, many Italians choose to open a credit line on their bank account.
What is the credit line
Bank credit is an additional liquidity option that the bank offers to its customers, physical or legal entities, companies and individuals, which allows the availability, possibility of drawing on the credit offered by the bank when the account goes to zero. The loan is commensurate with the bank and proportionate to the user’s economic condition.
However, the credit line provides, as for personal loans, a credit repayment plan, planned and structured according to timing and milestone. Also in this case, but depending on the contractual conditions and contribution capacity of the user, there are the applications of interest rates and a forecast of diversified financing solutions in case of very long time ranges of overdraft on the account and any penalties.
Difference personal loan and credit line
Why and how do you apply for a credit line? The credit line, as the word itself means, is a loan method through which the bank <> from which I credit, also known as “credit”, a credit to its own account holder who meets certain conditions:
- must be a current account holder
- it does not have to be exposed particularly with many other loans
- its economic capacity must be such that it can support the award.
In detail, a current account holder, whether it is a company or a natural person, can request credit from his credit institution. This request will trigger a series of investigations on the credit databases of the financial situation of the person who submitted the loan request. If the applicant’s economic capacity is recognized as valid for the bank’s guidelines and allows for an adequate repayment plan that protects the credit that will be entrusted, the bank grants the loan by proposing to the customer the amount of the credit that is proportionate proportionate to the economic capacity of the account holder.
The credit that the bank will entrust to the account holder can also go below the amount disbursed up to the maximum amount of the credit, however the interest rates will always be calculated in relation to the amount of credit that the bank has granted and entrusted to the account holder.
What is a personal loan
in the definition of a loan, from banks or credit institutions, there are various types and forms of financing, including custody, what is important to consider in this regard is that the loan is always a credit that an institution, bank or other form of association is enabled, grants the entity that it is a physical entity or a legal entity.
A loan is generally granted to the customer with a fixed interest, the repayment plan provides for a scalable rate according to the contractual conditions stipulated between the bank and the customer. The type of loan can be opened and diversified in various forms that we are now going to check:
to. it can be personal
b. it can be business
c. can be community
What is more obvious, the loan becomes one of three forms (a, b, c) depending on whether it is requested by a physical entity, company, or coordinated by the structure of the European Union.
Finalized or not finalized? What does it mean?
The loan is defined as finalized in relation to the purchase of specific goods or, on the contrary, it is defined as not finalized when the request is sent by the customer to obtain a credit to be used in a generic way to face immediate unexpected and unexpected needs. Requirements to access the loan:
- to. between 18 and 70 years old;
- b. ascertained income (the famous paycheck) or the presence of a guarantor;
- c. creditworthiness; there must not be any defaults from the credit databases.
In summary, the loan is a portion of money that must be repaid by the applicant to the bank through installments characterized by both capital and interest. The credit is always a credit disbursed but unlike the loan, the account holder reimburses only the part of the amount he uses. The total sum of the loan is established by the user while that of the loan is by the credit institution and always in relation to the economic capacity of the account holder.