We would all like to go through life and meet all our needs without making money a problem. Unfortunately this is not the case and at some point we will be in the situation of not having the money required to obtain something or solve a problem.
Then we inevitably resort to the loan . In the following lines we will briefly explain what types exist, but not before remembering that they are an obligation and that it is best to pay in time and conditions agreed with the entity that has given you the money.
These are classified into three types: short, medium and long term.
- The short term are those that are granted for 30 days to be returned in 12 months. Here you have more information about short-term loans.
- Those of medium term, are those that are granted to be paid from 12 to 36 months (three years).
- The long term are all those that exceed 36 months to be paid. Here you have more information about long-term loans.
Expiration times are usually commensurate with the amounts that are lent, so small sums of money are usually granted to be returned in a year or less, while larger amounts, such as mortgage loans, generally fall within the range. of the long term.
According to its purpose
They can also be classified according to the “for what” I am requesting that money:
- Personal loans: it is the one that is requested to pay things like a medical emergency, a movie appointment, a trip, meals, that is, perishable or intangible things. We recommend that the lowest possible figure be requested because failure to pay carries very high penalties.
- Consumer loans: these are the ones used to pay tangible, non-perishable goods such as appliances, a computer, cars, etc. Like the personal ones, these are short term and advisable for not very large quantities.
- Loans for the study (university): this credit modality is gaining ground in Spain, although it enjoys great popularity in the United States, it is not very common in most of Europe to pay for studies through the support of financial institutions. In any case, loans of this type are more flexible and with lower interest.
- Mortgage loans (mortgages): these are large loans that are requested to acquire a home or business. To grant them, financial institutions request, apart from personal guarantees, the good that is being acquired as collateral. This means that if it is not paid, the bank or institution that has granted the money has the right to dispose of the property to repay the debt. As for the duration, these are long term, usually between 15 and 30 years. And regarding interest, the rate is set in accordance with the policies of the financial entity.
- Loans for retirees: there are loans that take into account the particular situation of those people who are retired and therefore have a stable pension as a main part of their income.
- Loans for companies: companies have special lines of credit both from certain public administrations and from many entities. These lines of credit are often closely linked to productivity and the business plan.
- Loans for freelancers: freelancers are another group that can access special loans according to the labor needs of your business.
Fast, with and without payroll
This is a way to get cash in an expedited manner . With this we recommend reading the conditions of the contract very well and calmly. Banking institutions are increasingly open to these types of loans, but if done with any other financial entity, it is necessary to be alert, especially with interest on capital that tend to be high.