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Loans

How does a loan work?

Whether for investment, for a need or for wanting to achieve that goal, are you considering acquiring a loan? Here we show you how it works, the benefits and obligations that you will have to contract with it.

A loan is the money that a person obtains from another

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A loan is the money that a person obtains from another or from a financial institution, to repay it at a certain time and usually carries an additional payment of interest.

Common to use financial terms

When applying for a loan, it is common to use financial terms that you may not know or fully understand, such as:

  • Interest rate: is the amount of money that the debtor must pay to whom he lends, for the use of the borrowed money.
  • The fee is the payment of fixed or promotional money that must be paid on a regular basis for the credit.
  • Term: refers to the period of time agreed to pay the loan (it can be 12.24.36 months, etc.)
  • Level fee: it is the fixed amount of money that you are going to pay during the life of the loan.
  • On balances: it is a different alternative for payment, in which the amount to be paid each month is different, depending on the current capital balance of the loan.
  • Surety: is the person who commits to the payment in case of breach of the commitments acquired by the debtor.
  • Guarantee: when requesting a loan, it is common to request a guarantee to ensure payment. The most common example is real estate.

With Good Credit loans, from Good Finance, you have the best options to finance your projects: from consolidating debts, studying a master’s degree, starting your own business or making the trip of your dreams, Good Credit makes your goals possible today. Click here to apply for your Good Credit loan and don’t let money be an impediment to reaching your goals.

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