Jugglingart.Org

People can save money, and also can borrow money in the bank. Motifs of loans are different for societies. There are people who loan money to open a business. There are also people who loan for home renovations, buy new cars, buy computers and so forth. The difference of this motive makes the bank create a variety of loan products. Each product is created to fulfill different purposes. Basically, there are three kinds of credit products. Namely:

1. Business Loan

2. Consumer Loan

3. Multipurpose Loan

Business Loans are loans used to funding the business so as to produce something productive, such as trade, home industry, business consulting services, and others. If you have a business that seems prospective, you can come to the bank and loan money for funding your business.

Consumer Loans are loans used to buy something that is consumptive, such as buying a home or personal vehicle. Two consumer credit which is quite popular is the Home Ownership Loan (mortgage) and Vehicle Credit. Of course, because the money will be used by customers for consumptive purposes, then the risk for the bank that its customers can not afford the loan will be larger. So that in general interest rates charged to customers for Consumer Credit will be greater than the interest credit for business purposes.

Besides the two types of credit earlier, there is also a Multipurpose Loan. As written in his name, Multipurpose Loan is a loan that can be used for any purpose. It can be used for consumption or for business. One most popular in multi-purpose loan is Non-Collateral Loan. Do not borrow money from banks usually have to wear a collateral?

Yes. In general, if you want to get loan, you have to pledge one of your own property to the bank so if you are not able to return the loan, the bank will confiscate your property which is guaranteed. Surely the value of guaranteed goods must be greater than or at least be equal to the value of money you borrow. But on Non-Collateral Loan, you do not have to submit guarantee items to the bank. You are only required to have a certain amount of income each month and submit a proof that you are indeed correct for the amount of income required.