You are about to start your new company, but you still have to solve the financing issue.
If you are wondering what type of loans exist and which one might be more convenient, here we explain them so you can make the best choice.
Personal, mortgage, business, which one do I need?
These are frequent questions at all levels, so here we present the main concepts and characteristics of each one to help you make a better decision.
The first thing is to consider what your need is.
Are you thinking of buying a house?
You probably require a mortgage loan. You want to travel? You can ask for a Pinjaman Peribadi. Are you thinking of undertaking?
A business loan is what you should look for according to the main financial institutions in the country.
But first we should start by differentiating a loan from a loan, a common confusion although they are very different.
To begin with, in the loan the financial institution makes a fixed amount available to the client and the client acquires the obligation to return that amount, plus commissions and interest agreed within the agreed term.
In the credit, however, the financial institution makes available to the client, in a credit account, the money he needs up to a maximum amount of money.
On the other hand, the loan is usually a medium or long-term operation and the repayment is normally made through regular, monthly, quarterly or semiannual installments.
In this way, the client has the opportunity to organize better when planning payments and personal finances.
Loans are generally personal and are granted to individuals for private use, therefore, personal guarantees (guarantees) or real guarantees (pledges or mortgages) are generally required.
In the loan, the amount granted is normally deposited in the client’s account and he must pay interest from the first day, calculating the interest on the amount that has been granted.
Mortgage, personal or business?
And already entered into the matter, let’s talk about the three different types of loans:
As for personnel, this is generally used to finance specific needs at a given time and for a small amount. It is very similar to the consumer loan, although in this case they are used to pay for trips, a wedding, etc., that is, intangible or perishable goods.
It is the most common product and can be granted to any individual with a bank account at the institution or not.
The credit destination is free and seeks to finance personal needs such as a wedding, a trip or an emergency. In this type of loan, present and future assets are put as collateral or in some cases a guarantee must be presented depending on the capital acquired.
The temporalities of these products are usually short and medium term. They are the easiest to process and there are a variety of financial institutions that offer them.
As for the mortgage, this is characterized in that, apart from the personal guarantee, a real real guarantee ’is offered, which consists of the mortgage of a real estate. If the loan is not repaid, the financial entity would become the owner of the home.
And, in this case, the mortgage is a right that the financial institution has to keep the property in case of non-payment of the loan.
Normally, mortgage loans are usually used for the purchase of a home, although it is also common for people who apply for home loans to face the creation of a business.
The maximum loan amount never exceeds 80% of the appraised value of the property.
Business loans are financing aimed at entrepreneurs of small and medium enterprises that seek to create or grow their business, these types of products are granted by private and governmental financial entities designed to meet specific needs such as purchase of machinery or purchase of merchandise and materials.
The temporality can go from 6 to 60 months depending on the loan, usually one or more guarantees are requested or the machinery acquired as collateral.
In Mexico there are different opportunities for banking institutions and other types of institutions that will help you set up a fixed business in a simple way, fixed payments in the medium term, and many other advantages.
They usually offer a simple line of credit for up to $ 250,000, to be paid in a term with fixed monthly payments up to 48 months. It is worth mentioning that for the processing of this type of business loans a mortgage guarantee is not required, and the interest rates are fixed during the credit term.
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