In order to know the meaning of the term bank credit, it is necessary, first, to discover the etymological origin of the two words that shape it:
-Credit comes from Latin, exactly from the verb "credere". This, in turn, derives from a Latin expression "certum dare" and comes to mean "to give the right thing."
-Bancario, on the other hand, is the result of the sum of two clearly defined components: the Germanic "bank", which is synonymous with "financial entity", and the suffix "-ario", which is used to indicate "membership" or "relationship".
It is called credit to the money that an individual or an institution lends to someone, setting certain conditions for their return (interest, terms, etc.). Banking , meanwhile, is that linked to a Bank : an entity that provides financial services.
A bank credit Therefore, it is the one offered by a bank to its clients. In this case, the bank becomes creditor when delivering a certain amount to the customer, which happens to be debtor . The return of loan it must be done according to the agreed requirements; otherwise, different types of punctures can be applied.
Suppose a man Go to a bank to apply for a loan. The entity grants you a bank credit from 10,000 pesos with an interest of 15% , which must be returned within twelve months. It also charges a 5% for administrative expenses and obliges him to take out insurance equivalent to 1% of credit This means that, once this bank credit has been returned, the person will have disbursed 12,100 pesos . In other words: bank credit will cost you 2,100 pesos (the difference between what he received and what he returned).
In order to get a bank to grant a credit, it will be necessary for the applicant, among other things, to prove its solvency. Likewise, you can choose to proceed to present an endorsement, which will be the security that the entity will have to know that it will be able to recover the money it lends in the event that it does not pay the fees that have been established.
In the event that those who have applied for a bank loan do not pay their fees, the following will happen:
-If you have not paid a fee within the established period, what will happen is that you will be charged, in addition, what are late payment interests.
-If there are two installments that have not been paid, the bank will establish that person or company on its list of delinquents.
-In the case that there are three or more installments of the credit that have not been paid, the bank will proceed to initiate a claim through judicial means to recover the money that has not been paid.
There are different types of bank credits. The personal credits They are those that are given to people, who can request them for different purposes (take a trip, remodel the house or organize a wedding, for example). The commercial credits instead, they are granted to Business . The mortgage credits On the other hand, they are aimed at acquiring a plot of land or a house, using the property itself as a guarantee.