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Know The Types Of Loans Based On The Term And Its Use

Hearing credit terms is definitely not a thing foreign to you, especially if you are an individual who has long been in the business world. Credit is the type of licensed moneylender in sg product that is most widely used by the community, considering the bank itself is an institution that has the function to raise funds in the form of savings (Saving) from the community to then be channeled back in the form of loans or credit. Although borrowing money has become a common thing for the community, but there are still many who do not know about the types of bank credit. And by knowing these types of credits you can map well how your credit will run and you also will not get the mistake to choose the type of credit. What are the different types of credit? Short-term Credit; This type of credit is provided by the bank to customers with a repayment period of not more than one year. This type of credit is often an instant solution for individuals who want to build a business on a micro- to medium-scale.

Medium term loans; The credit on point number 2 has a longer repayment due date than the short-term credit type. The lending institution determines if the loan has a repayment term within 1-3 years. Long-term credit; At the last point, this is the type of credit that is usually used to finance large projects such as apartment investments to the construction of toll roads. No wonder if the time period given to customers is also quite long that is more than 3 years. Similarly with credit grouping based on the nature of its use, is consumer credit. This type of credit is widely used by individuals and this makes the bank enforce a strict policy to see if the customer has the eligibility to obtain a loan. The selection policy is usually made based on previous customer credit history, if the history is good then it is likely that this credit will be approved by the lending institution. There is also commercial credit, this type of credit is a loan used by an agency or an individual to finance a business. The profit source of the business income itself will also be used to pay the credit. Here are the types of commercial credit; Micro Credit, this loan is given to business actors who want to pioneer a business on a micro scale. Small Business Credit; This facility is given the licensed moneylender in sg to the debtor to finance a business on a small scale.