A loan is the relationship between individuals, one is the lender and the other is the borrower, if we involve the word bank, it means that this relationship is between an individual or company with a bank, which is the institution that provides the service of financing.

Procedure to apply for a loan


This relationship begins when the individual, on behalf of a company or staff, assists the bank in making the request and provides the necessary requirements, while the bank conducts an investigation into the ability to pay and approves the loan under certain conditions. in case you approve of course. It is a very old banking business, where the bank wins through the interests agreed by the parties from the first moment.

Purpose of the bank loan

Purpose of the bank loan

The purpose is defined by the borrower and usually the loan is sought to pay for the acquisition of a good or the payment of some service. On the other hand, when we talk about loans to companies it can be related to the payment of policies or to face a temporary crisis of liquidity or extraordinary expenses. In case of companies tends to be involved with the acquisition of machines, repairs, reconstruction of spaces, purchase of computer equipment, payment of specialized services, among others.

Types of bank loans

Types of bank loans

Banks offer several types of loans, although the best known are mortgage or personal loans.

Consumer Loans

These are loans to durable material goods, such as a car. These, like personal loans, tend to be of smaller quantity and with a short return period.

Study loans

These are destined to pay university tuitions, postgraduate or exchange trips. Interest is lower than personal loans.

Mortgage loans

These are loans based on a real guarantee, where mortgages a property, in case you do not pay the loan in the determined time, the bank will become the owner of the property. It is a loan used not only for the purchase of a product, but also for the start of a business. A tip, in case you want this type of loan, is that the good is not more than 80% of the amount you request, because you would be giving a good more expensive than the same loan.

Personal loans

They are used to pay a specific need, tend to be small amounts.

Guarantees is a method that the bank uses to protect itself against the delinquency that a borrower may present. If you choose to make this type of request you must be alert to the clauses of the contract and define very well the interest rate and payment dates.