The loan agreement creates obligations for both parties to the agreement. In the loan agreement, the bank undertakes to make available a specified amount of cash to the borrower. The agreement specifies the purpose for which the money is to be spent and the loan period. The borrower undertakes to use the money in accordance with the purpose set out in the contract and to reimburse the receivables together with interest on the agreed date and to cover the costs of the loan.
Due to the subject of the blog, we refer to the loan only in the form of money. Through a loan contract, the lender transfers to the property of the recipient a certain amount of money. The person taking the loan undertakes to return the same amount of money. Loan agreement for an amount over 1,000 USD requires keeping document form.
It is the act that determines who can grant us credit and in what form. Credit can only be granted to us by the bank or credit unions.
Anyone who has the capacity to perform legal acts, i.e. the ability to acquire rights and obligations in civil law relations, can grant us a loan. Therefore, a loan can be granted to us by a bank or credit unions. However, in this case there are also other entities such as loan companies or even natural persons.
The bank’s money comes from its customers. SKOK’s money is money from its members. The bank or credit unions do not grant credit with their own money, but with the funds transferred to them by customers. The bank is not the owner of the money borrowed.
It is different in the case of loans. A natural person or business entity that wants to grant loans is required to have its own money. This means that to borrow money to someone else, he must own it.
The bank is required to verify our credit history at the Credit Information Bureau. The issue of repayment of previous loans as well as timely repayment of individual installments is checked there. In addition, the financial situation of the bank is also important for the bank, i.e. for what type of contract we are employed, for what time, what is our current debt, how much we spend on maintenance, etc. It all affects our creditworthiness . For a bank to grant us a loan, we must have credit standing. However, having creditworthiness does not guarantee that we will get a loan. The final decision in this matter belongs to the bank, which may or may not grant us a loan.
The non-bank lending institution is not required to verify the customer at the Credit Information Bureau. Hence, flooding ads that promise money without prior verification even for people with low earnings.
The cost of the loan is the loan amount, interest and additional costs. The combination of all components gives us the real cost of credit and APRC. The interest rate, or rather its upper limit is set by law. Additional costs depend entirely on the bank.
For loans, the nominal interest rate remains the same as for loans . However, non-bank institutions granting loans impose a much larger amount of additional costs, which consequently leads to the fact that the APR of the loan is much larger than the credit.