The different types of bank loans and their operation

The types of bank loans include real estate loans, consumer loans, car loans, etc. All loans that encompass the various money lending activities are granted by commercial banks. Except for the interest scales on a current account overdraft and rare revolving loans, the vast majority of credit calculations are now carried out in accordance with the 30-day constant bank month convention.

Description of consumer credits

Consumer credit is a loan granted to individuals. It is available in different ranges such as loans or restricted loans such as car loans, revolving loans also known as revolving loans, and Lombard loans. This type of consumer credit is a fixed rate loan. A credit purchase, also called an instalment sale, is a credit agreement that normally allows the acquisition of tangible movable property to be carried out. This transaction allows you to benefit from a loan that is paid by periodic payments, including at least 3 payments that do not take into account the deposit of at least 15% of the sale price. A personal loan or instalment loan is a credit agreement that makes it possible to make a sum of money available to the consumer for repayment by periodic payments.

Credit designations

There are different forms or names of loans offered by banks. Depreciable credit, the most common form of loan, can be declined into a consumer loan or a home loan, a variable or fixed rate loan. Variable-rate or adjustable-rate loans are loans whose interest rate is index-linked. The evolution of credit can thus fluctuate upwards or downwards. The particularity of the modular credit is that the subscriber can change his monthly payments, postpone one or more instalments or make a partial early repayment of his debt.

What about credit repurchase?

The purpose of credit repurchase is to optimize budget management when you have taken out several home, car or consumer loans and have to pay several monthly instalments. This solution is also useful for paying off several debts in a single payment. The payment of the monthly instalments is thus made with a single contact person. Generally, the operation is accompanied by an extension of the repayment period. However, the repurchase of credit is a way for the borrower to repay a monthly payment that is often lower than all the loans previously drawn down. Credit repurchase applies to all types of consumer, real estate and private loans. In practice, each credit institution is free to set its own criteria for accepting loan consolidation.