What is a loan? A loan is also often referred to as a loan, although a loan in legal matters differs from a loan. And what exactly is a loan? Almost everyone has ever taken a loan. But is that really correct?
And what is a loan?
Anyone who wishes to borrow from third parties for any reason whatsoever comes into contact with the term “loan” in practice. A loan is also often considered to be a loan, even though it stands out from a loan in legal matters. Also in the short version “Darlehn” is used.
There are different types of loans, which are either based on the purpose of the loan or on the loan terms. Thus, the borrower can usually select in consultation with the lender the optimal form of the loan for him. A loan is a loan from a so-called creditor (lender) to a borrower (borrower).
A commitment is made between the two sides, usually in writing, especially in money matters. The loan is granted for a limited period of time, in which the lender provides the borrower with a certain amount of money or an asset for use in disposing. The loan can be paid or free.
Ie. depending on the contractual agreement plus the repayment or return of an item, the lender charges default interest. The classic example is a loan from a credit institution which, under certain conditions, grants loans to the borrower who pays the loan to the lender. In the case of a loan, the duration of the loan is determined and set as maturities.
The interest amount is calculated from the percentage as well as the loan term and the amount owed. In the repayment of loans, the balance and thus the interest is reduced. Depending on the credit agreement, a distinction is made between a fixed and a variable interest. Interest shall normally be paid at the end of a calendar year or short maturities less than 12 months after repayment of the entire loan, unless otherwise specified between the parties.
In addition, a so-called lending fee may be required by the lender. The amount is usually based on the loan amount and depends on the different fee scales of the respective credit institutions. The amortizable credit is based on an origin, in which the term “amortization” on the Anglo-Saxon term “dilegian” in the beginning of the century can be traced, which in turn from the Latin “delere” stems and “destroy, delete” means.
An amortization loan is a contractual loan agreement in which the principal amount to be paid on a monthly basis is calculated from the repayment amount and interest. The principle applies here that with every partial repayment the loan amount and thus also the interest amount is reduced with each partial repayment. A building loan contract with a final Construction is concluded, in which a fixed building society over a long time horizon is paid.
Depending on the homeowner savings deposits are usually between 40 and 50 v. H. the sum total of Construction deposits including interest, which was set in advance upon conclusion of the contract. For this purpose, a certain estimated value and the end of the term as well as the agreed savings amount must have been achieved, in order to take up home loan savings at the saved savings amount.
The Construction insurer uses the contributions made to grant loans to other home savings customers. The loan repayments take place in the same stock as all other savings deposits, so that there are funds available for further savings from other insured persons. This requires interim financing, which increases the otherwise low lending rate. Accordingly, Constructionkunden often rely on several small contracts that can be better paid out alone from a Constructionpool and give the Constructionn thus a higher chance of favorable interest rates for a building society savings.
The difference is based primarily on the term “annuity”, which derives from the word “annus” and provides a “year”. In financial accounting and in connection with a loan, “annuity” refers to the year during a loan transaction. All installment payments are made in comparison to the amortizable loan until repayment of the loan during the term.
The interest is highest at the beginning of the installment due to the even higher loan amount. Due to the steady repayment of the residual debt through repayments, the interest burden decreases with each installment. In contrast to a repayment loan, the repayment rate now increases to the same extent as the interest portion, so that the borrower can always be counted on the same installment on the respective due date.
What does a participation loan stand for?
The term “partarian” derives from the southern term “partire” and stands for “share”, which refers to the participation in the financing. A patriarchal loan is when the borrower needs him, for example, for a start-up company, for the expansion of a company or to avert bankruptcy. Unlike a conventional loan, lenders are not “compensated” by interest, but receive a share of the profits of the company for which a loan has been granted.
In contrast to the acquisition of shares in a group, the lenders do not act as shareholders in a participation loan and only have a limited right to co-determination in the group, which is based on the value of the investment. In the case of partial loans, a further period is set after which the lender must repay the loan amount plus any interest payments to the lender.
If the sponsored business has little or no profit or turnover, the investor or lender can earn little or no revenue from the loan. This means that the lender does not pay for the company’s debts. This participative loan can look back on a medieval past in ancient Venice.
In 1850, the American sewing machine manufacturer American Singers joined and offered rates for the payment of bills. If there are several repayment installments, these are the same over the entire duration. The interest is usually only at the end of the contract period or in a calendar year. The remaining loan amount is reduced by the repayments so that the interest rate is reduced each year.
This distinguishes, for example, the installment loan from the annuity loan, in which the repayment amount is increased by the amount of the interest reduction, and thus the loan, including the interest payment, is paid in full at the end of the repayment. Is a final loan? In the case of a repayment loan, there is no repayment during the term of the contract, such as repayment loans or annuity loans.
In this case, the loan is only repaid at maturity. Interest will only be paid on the amounts paid at the end of each financial year, which are last paid upon repayment of the loan. A good credit rating for a ball loan is the norm. A term loan is usually used when a certain bridging period is to be reached, at the end of the borrower a cash payment z. B. from a life insurance policy or a home savings contract can expect.
Therefore, many consumers or businesses tend to take out a loan to refrain from the termination of short-term financial assets. It should be noted, however, that a negative interest rate may arise, especially with a secure investment, if the interest on a loan with a maturity maturity exceeds the benefits of a secured investment. In the end, therefore, damage always has to be accepted, but in contrast to system crashes, it is usually lower.
Another reason for a loan is the tax advantages that it has especially in the rental of real estate. Borrowing costs may be deducted for tax purposes, while interest income is taxable in the first twelve years of the contract when life insurance policies or the like are paid out. Often, the differences between the different types of credit are small, although depending on the purpose and the financial situation, these can be serious for the borrower.
In doing so, it is necessary to choose the appropriate type of loan in such a way that it meets individual needs and is economically most favorable to the borrower.