So interesting that you find some of the terms currently used in matters involving money have emanated from Greek or we may say Latin languages. When we talk of the term credit then we mean I believe upon translation from Latin word ‘Credo’. This encompasses monetary transaction which demands a lot of trust from the parties involved. Long times back you could find that if you wanted to lend money to somebody, then spoken word was used as a guarantee. In those olden days, you find that credit mostly involved barter exchanges but not money. Things have however changed in the modern economy. Whereby when we talk of credit we will be meaning all transactions that are involving cash. You will find drawn contracts as well as agreements whereby most of them have legal terms. The ordinary people may not sometimes understand the terms. When we talk of credit in our modern economy, we denote any payment that has been deferred. In that, you pay later upon receipt of a particular amount of money, goods or even services. Read more about car loans. The late payment as currently denoted is what is referred to as the debt. It is thus apparent that borrowers have to get credit from the lenders or creditors. When a certain amount of cash is given to cater for different needs like education or even personal needs, then we refer to it as the loan. We can also refer to it as the consumer credit or loan. The modern economy has been able to categorize consumer loans differently.
We have the convertible loans as well as the installment loans. Single loans, as well as the unsecured loans, is also another category. On the category of the single loans, this entails the cash given to be repaid within a short term. When the loan term ends, the single loans demand payment in full together with the relevant interest rates. On the installment loans. This is a type of consumer loan that demands payment at regular intervals. The regular intervals are majorly monthly. We have categories of a vehicle as well as home loans under this. Secured loans category. In this category, you will be demanded to secure an asset in exchange for the credit. This means that in case you fail to pay then the creditor will be in apposition to recover the asset that was used as collateral. Read more about business loan. Convertible loans are the one whereby you find the interest structure being able to vary to more variable rate. When opting for the consumer loans, you should be very careful and be fully informed. Make sure that you get financial advice from a professional. Learn more from https://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/money-banking-and-investment/loan.