Are you interested in how a loan is different from a loan? To do this, it is worth considering the economic nature of these relationships and then everything will be absolutely clear.
Main features of a loan and a loan
A loan is provided by banking institutions on certain conditions, among which it is worth highlighting urgency, repayment and payment. It follows that if you decide to borrow from a bank, then you will definitely need to return the money, moreover, in due time and pay interest for the service provided, which is the monetary commission of the banking institution.
Based on this, an agreement is concluded between a banking institution and an individual or legal entity, which prescribes for how long the amount of money is provided, how exactly the debtor will pay them and what interest will have to be paid.
It should be noted that if the debtor does not return the funds in full, then the credit institution has the right to forcibly withdraw them from him. At the same time, a credit institution can withhold lost profits, because the returned funds could eventually be transferred to another person on a paid basis.
A loan is an object of economic relations between entities, in which money, things or any goods are given by the lender to the borrower under certain conditions of repayment. In this case, the debtor must only return the money or things transferred to him to the lender in the amount in which they were received. Also, the loan agreement may indicate the time at which the property was transferred, but the point on interest may not be indicated. In other words, the loan agreement can be interest-free, and the payment for the use of the goods itself can be expressed as a percentage or a specific fixed figure.
A loan and a loan have similarities in that the transferred property is subject to return, only with a loan it can only be money, and with a loan - things, products or goods. In addition, a loan always implies the payment of remuneration to the lender, which is expressed as a percentage, and the lender may not receive a certain amount of money for the transferred property.
Thus, the difference between a loan and a loan is as follows:
• According to the loan agreement, money is always transferred to the temporary disposal and use, and according to the loan agreement - not only cash, but also other valuable things, property or goods;
• A loan means a period for which money is transferred for temporary use, while they are returned in equal parts at a specified frequency, and the loan agreement may not reflect the debt repayment period.
