Day: June 22, 2025

4 differences between credit and loan

Credits, loans,mortgages … In the current economic situation we are living, these words have become more common than ever. Not only because of the need we normally have to resort to financing, but because of the recent concern about the conditions of these financial products.

What is a loan?

The loan is an agreement between two parties, a lender (which is usually a financial institution, but can also be a friend) and a borrower (client or beneficiary), through which the first one lends a fixed amount of money to the second, which undertakes to return it within a stipulated period, either once or in several installments. This agreement usually carries some interest for the borrowed money, which is usually a percentage of the total money lent and is usually paid in the form bad credit payday loans of regular installments.

Mortgages are a type of loan, with specific financing characteristics.