A loan is usually understood as lending money from a lender to a borrower under certain conditions. Accordingly, a loan repayment is recommended, especially in times of low interest rates. If the borrower is unable to pay his installments, the lender has the option to dispose of the related assets. Lending can be provided by a variety of credit institutions and is backed by collateral or guarantees, especially in the case of large amounts. Bad loans are loans that, from the lender’s point of view, are associated with a very high risk of default or whose repayment is unlikely.
And what is a loan? credit definition
In the case of a loan, the lender (= creditor) lends money to the borrower (= debtor). It is usually concluded for a certain period of time, during which the borrowed loan is repaid to the payee. This can take place in regular tranches that are either the same for the entire duration (= annuity) or consist of a fixed repayment amount plus a steadily decreasing interest payment due to the falling debt amount.
The maturity loans are repaid at the end of the current period in a single amount. In addition to the loan amount, the borrower must pay interest, which is also arbitrary. However, this is usually determined and determined by the payee according to certain standards. The interest on the one hand provides a certain risk premium for the lender, since in the case of the insolvency of the debtor, the full amount of the loan is not reimbursed.
Here, the creditworthiness of the borrower is of great importance. In addition, a surplus for the lender should be generated at the end of the term of office. The granting of loans is a form of investment for him. The term “credit” comes from the Latino “credere”, which means “believe”, but also means “trust”. The creditor relies on the creditor’s ability and willingness to repay the loan on the specified terms.
If the amounts are too high, the creditworthiness of the borrower is too low, the borrower can be given a security. This results in the security if the loan is not repaid as agreed. However, the realization, ie the purchase of security, means an extra effort that the lender would like to forego.
Check credit now! What kind of loans are there? Below you will find a selection of the most common credit types – with a mouse click on the respective subpages you will find further explanations and explanations.
What significance does the compensation have in the case of a loan?
A disclaimer increases the creditworthiness of a business and often makes a loan possible. This is usually important if your own security features are not available or not sufficient for securing a loan. For whom is the loan for the self-employed? In principle, an applicant must be liable for a loan transaction. Only if the collateralization of a loan by a self-employed person or a private borrower is not sufficient can the medium-sized bank or a state promotional bank make use of liability exemptions.
Which state can be exempted from liability for a loan transaction? As a rule, the house banks are 100% liable to the development bank or the regional banks for the repayment of a loan. In the event of damage, your and the development bank will bear the damage within the specified quota. The disclaimer thus favors the credit of your lenders.
You are obliged to provide the usual bank securities. 2. In the case of non-liability loans, however, at least the capital goods must be used as collateral. If a loan from Intrasavings-Bank or Landesförderbank is not relieved of liability for a loan, self-employed persons can claim from the guarantee bank a guarantee for the equipment and participations of 50% to 80%.
This increases the credit security and thus the creditworthiness. The classic form of lending by Intrasavings bank is borrower’s credit. For investments and working capital with maturity, the borrower grants a 50% exemption. Such a disclaimer of a Landesbank increases the collateral for the loan for the Intrasavings bank.