Help me by rating and commenting on the series! ! The difference between loans and credit results exclusively from the term and the respective sum. In practice, the terms loan and credit are not really separate. The term “loan” is used in the law, while the term “loan” is used colloquially. Loans, especially bank loans, are unthinkable without the financing of private individuals and companies in particular:
What is the difference between loan and credit?
In colloquial terms, the terms loan and loan are used synonymously. Is there a difference between credit and loan or not? If not, why is there a card and no bond? In short, there are certainly big differences between loan and credit, even if you have both terms synonymous.
Both loans and credits are a means of raising funds, particularly for borrowing.
Credit is now the generic term, while the loan is some form of credit. This means that a loan is always a loan, but not necessarily a loan. By the way, the law of the Federal Republic of Germany is always talking about a loan.
For example, 488 Civil Code contains the typical contractual obligations for loan agreements, while 489 Civil Code of the borrower provides for the ordinary right of withdrawal. Even if the German Civil Code does not explicitly mention the loan, these provisions apply eg. B. for a loan agreement. In some cases, you read that the difference between a loan and a loan is that, for a loan, both money and other things remain with the borrower, while a loan is only money.
Section 488 of the I. Civil Code states that the credit agreement requires the lender to provide the borrower with an amount of the specified size. The borrower is required to do so. The loan agreement forces the lender to leave an agreed fungible object to the borrower. The Borrower is obliged to pay a loan and to repay it to the same extent and quality. Second
It is now common practice to talk about a loan for a higher and longer-term money loan and a loan with a correspondingly lower total and shorter term. The loan is therefore mainly to be found in the financing of real estate, although it is sometimes referred to here for lack of limitation as a loan.
In consumer credit, ie the promotion of cheaper consumer needs, the term credit is reused. Loans can be broken down into short-term loans, medium-term loans and long-term loans, which would make the long-term loans a loan. Conclusion: A loan is not a loan but a loan is a loan.
Both differ mainly in the amount of the bond and the duration of the bond.
There are also some legal differences, but both terms are often used as synonyms.