Additional obligations for the borrower

Lending is due to additional obligations for the borrower. This may be the duty to engage in a specific type of activity, the direction of borrowed funds for certain operations, other restrictions.

Especially significant condition for lending is a way to use borrowed funds. It is on this basis that loans are first classified. So allocate: Consumer loans - loans to individuals for everyday needs, the purchase of necessary household items. Business loans - so often called borrowing for business development. Real estate loans are loans for the construction or purchase of buildings and structures. Most often, the purchase of housing is credited. Car loans. Education loans - funds received are sent to educational institutions as tuition fees. Credits for treatment and rehabilitation. These are only the main, most well-known areas of credit consumption.

Other forms of lending are possible, find their application, but are less common. The loan proposal is determined by the needs of beneficiaries, the possibilities and the perceived profit of credit institutions, and is governed by law. During the transfer of valuables between the party receiving the loan, that is, the borrower or borrower and the party giving away - the borrower or lender, a loan agreement is concluded. In which the loan recipient undertakes to return the received financial resources at the appointed time, and also to pay the fixed interest or a fixed amount for the right to own the transferred funds.

There are preferential credit offers; for example, a number of banks have special housing purchase programs that can be used by a young family. To get a loan, you must provide the bank with relevant documents confirming the borrower's solvency. In assessing the solvency of the client, the bank deducts from its income all payments on existing loans, and if the amount of income allows, it issues a new loan. But If a large part of the income goes to make payments on existing loans, you will not receive bank approval, since the parameters for evaluating customer solvency by banks are currently quite tough. The terms of the loan are set by the bank in the loan agreement. As a rule, it stipulates the terms, all payments on the loan, measures of liability for breach of contract, fines for admitted arrears on the part of the borrower. On the market there are loan crediting programs. Loan is the receipt of a new loan at a bank on more favorable terms for the full or partial repayment of the previous one.