Credit: Why You Need It and Where to Get It

A loan is the provision of money by a bank or credit institution to a borrower in the amount and on the terms provided for in the loan agreement, according to which the borrower is obliged to return the amount received and pay interest on it.
Credits can be divided into:
banking (provided by banks);
commercial (transferred from one enterprise to another).

Let's take a look at the most common types of loans provided by banks.
A consumer loan is a loan that a bank provides to individuals. Such a loan is usually offered in a small amount and is characterized by a relatively high interest rate.
A car loan is a loan that a bank provides to individuals and legal entities for the purchase of a vehicle. Compared to a consumer loan, the amount of money to buy a car is significant, and the interest is slightly lower.
A mortgage is the longest and most significant loan that a bank provides to individuals and legal entities for the purchase of real estate. As a rule, in this case, lower interest rates and a longer loan term are offered. The purchased property acts as a guarantee of the refund.
A loan (loan) for education has a target orientation - the borrower receives a paid education.
Small business money is money given to organizations and private entrepreneurs in order to stimulate their activities, to pay salaries to employees, to buy equipment, etc.
Overdraft is the funds that are debited from the client's current account if he does not have enough of his own funds to carry out the transaction, that is, he is automatically provided with the missing funds for the transaction. Such debt is repaid by depositing funds into a current account.
A separate type of lending is credit card lending. A distinctive feature of this type of lending is a high interest rate on the loan and the fact that the funds provided by the bank in a certain amount can be used repeatedly.

 
Note!
At the same time, some credit cards have a grace period, which is a certain period during which no interest is accrued on the amount owed.

• purchases of household appliances;
• small purchases.

• purchase of an apartment;
• purchase of a summer cottage plot;
• acquisition of other types of real estate.

• purchase of all types of vehicles.

•  

  small, insignificant purchases.

• estimate the term of obtaining a loan;
• calculate the interest rate;
• assess the possibility of paying the monthly loan payment.

• the amount of the debt itself (the body of the loan);
• payment of interest on the loan in accordance with the loan agreement;
• fees and charges related to the review of the loan application and the disbursement of the loan, if any;
• fees for opening and maintaining accounts directly related to the transaction;
• payments related to cash and settlement services;
• fees for the issuance and maintenance of plastic bank cards, which can be used to periodically receive credit funds to the card account within the framework of an open credit line or overdraft.

• payment of the borrower's life or liability insurance, as well as the property pledged as collateral;
• valuation of pledged property;
• payments for notary or legal services.

1. expenses incurred by the borrower as a result of legal requirements and not taken into account in the terms of the loan. 
2. Payment of penalties by the bank for non-fulfillment of the terms of the loan agreement.
3. Fees provided for in the consumer loan agreement, the amount and term of payment of which are not known in advance.