Credit and loan – widely known and frequently used terms. It happens that we use them interchangeably . Few people know that they really mean something different, they have differences and a number of features that characterize each of them. What are these features? What are the differences between a loan and a loan?
A loan, i.e. I borrow money or a thing
The concept of a loan is standardized in the Civil Code. By definition, a loan is an operation that consists in making available to a natural person or institution cash or specific items for a definite or indefinite period. The loan can be paid or unpaid, and it is enough to make a declaration by the two parties. This means that no contract is required between the lender and the borrower – an oral agreement on the terms of the transaction is sufficient. So what could be the example of a loan? According to the definition, a loan will be a situation in which the father lends his son money free of charge. When I borrow a bike from a friend, I also make a loan transaction. In a situation where the customer borrows money from a non-bank institution and pays a commission and interest, we will also deal with a loan.
Special types of loans
There are two special types of loans on the market – bank and non-bank loans. As part of a bank loan, the bank provides the client with financial resources in a payable contract. Only money can be the subject of a bank loan. It is a paid contract, which means that the bank will specify the rules for granting financing – interest, commission and other costs that the customer will have to pay. A bank loan is subject to banking law. On the other hand, the non-bank loan will be granted by a private entrepreneur who founded a money lending company – popularly known as a non-bank institution / company. Money will also be the subject of the loan, although such a company could also borrow items. The contract should be constructed in writing and should specify the total cost of the loan. The loan granted by a non-bank company is subject to the Consumer Credit Act, and the company granting it should have relevant entries in the registers of the Polish Financial Supervision Authority.
Loan, that is, I go to the bank for money
As part of the loan agreement, the bank undertakes to make available to the borrower a certain amount for a specified period of time and to achieve the specified purpose, and the borrower undertakes to use the money from the loan as intended and to return the amount of the commitment, including interest and additional fees to the bank. Therefore, the above-mentioned definition results in a number of features that are characteristic of a loan. The loan will be a contract provided only by the bank under banking law . He will always have a purpose. It will always be a paid product.
Credit and loan
Even if we colloquially use the word loan and loan interchangeably, we must be aware that they are actually two different constructions. The loan does not have to have a purpose, it does not have to have a specific period, it can be free, it can be provided by a non-bank institution or a natural person. The loan, on the other hand, is legally regulated, and its definition inscribed in the banking law, must have a purpose, repayment date, i.e. also a schedule, must be payable and provided only by the bank.
Online loan and loan
When applying for funding, the Customer will receive non-bank loan offers. The agent who will contact the client after completing the application, however, has a broader offer in his sales system. Thanks to this, if the client’s risk profile allows it, he will also be able to offer the client loans available from leading banks. Lenders primarily focuses on solutions best suited to the client. Therefore, regardless of whether the loan or loan, the customer can be sure that he will receive financing adequate to his needs and possibilities. The offer is structured so that everyone can find something for themselves. Credit or loan without certificates? No problem.