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What is a credit loan? Things to know before taking out a loan

What is a Credit loan ? Which bank gives easy credit without collateral? See now low-interest unsecured consumer loans at Agribank, Vietcombank, VPbank

Are you having financial difficulties? Are you in urgent need of some money to meet a new arising need? You hear a lot of people talking about credit and you are wondering whether to choose a credit or not? Do not worry. This article will help you solve that problem. What is a credit loan, what should be noted when taking a credit, ..All will be answered in the section below! - What is a credit loan? – What is a credit loan?

What is a credit loan? Should I get a credit or not?

Nowadays, when life is more modern, people have more and more needs. For example, the need to buy a car, buy a house, pay off debts, business needs, .. To satisfy the "thirst" for capital, the form of credit loans was born.

Just like sellers and buyers when making transactions in the market. Lenders and borrowers work similarly. In which the main lender is a bank or financial credit institution, and the borrower can be an individual or a business. Although credit loans will promptly meet the immediate capital needs. But from another perspective, taking out a loan also means you have to take on a "new debt" from interest rates. And you must be able to pay both principal and interest.

What is a credit loan?  Should I get a credit or not?

What is a credit loan? Should I get a credit or not?

“Should I get a credit or not?” This is a question that many people are interested in. In general, any activity can be a double-edged sword, each with its own pros and cons. If you borrow money to serve a specific purpose and use it properly such as buying a house or buying a car, this is the best solution. However, if you do not have a clear purpose or have no need to use capital, you should limit credit loans.

Some popular types of credit loans

There are many different types of loans available today. Depending on the purpose and needs, each person can choose the appropriate form of loan. Here are 3 common types of credit loans you can refer to.

Unsecured loan

This is a form of loan without collateral, which is completely based on the creditworthiness of the borrower. Mainly for personal use. Be it travel, buying consumables, a party expense, etc. This loan is also very convenient. An unsecured loan can range from 10 million to 500 million, the loan term is from 12 to 60 months. To get an unsecured loan, you need to ensure the following conditions: age from 20 to 55, no bad debt, salary income is enough to repay the debt, but because there is no collateral, unsecured loans are often available. very high interest rates.

What is a mortgage loan?

What is a mortgage loan?

Mortgage loan

Contrast with unsecured loans. Mortgage loan is a form of loan where you must have assets such as real estate as collateral for the loan. All related ownership documents will be kept by the bank. However, customers still have the right to use the property as usual. In addition, when applying for a mortgage, you also need to meet all conditions such as: age from 20 to 55, no bad debt, enough debt repayment ability, legal assets (according to the bank's regulations). Mortgage loan period can be up to 35 years and loan amount is larger than unsecured loan.

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Overdraft loan

Overdraft is a form of bank loan when the money in the account is only 0 VND or when there is a sudden and unexpected consumption demand. Overdraft is also a widely used form because of its flexibility and timely disbursement.

Overdraft loan limits are also quite diverse. However, the interest rate that comes with it is not small. Currently, there is no uniform regulation on the conditions for allowing overdraft loans, because each bank has different regulations. But in general, as long as you have a stable job and income paid through a bank card every month, you are eligible for a loan.

What is a credit loan?

What is a credit loan?

Important notes before taking out a loan

To avoid any risks or problems, before taking out a loan, you should consider and note a few things below:

Note the interest rate before registering

Currently, there are many attractive "greetings" when borrowing money with interest rates as low as 0 dong. In fact, this is just a sophisticated trick to hit the customer's psychology, but people are often defenseless and apply for a loan right away without knowing that they have been "trapped" by scammers.

According to experts, low interest rate is not the lowest interest rate in the market but a reasonable interest rate for people's peace of mind. On the other hand, interest rates are high or low depending on the category and type of loan you borrow. Therefore, you need to determine the exact loan interest rate before taking out a loan. Know the interest rate incentives in the category that you borrow.

Understand the loan process and conditions

Interest rate on credit?

Interest rate on credit?

Choosing a bank loan is a solution not only for one individual. However, each different lending institution will have different policies and accompanying conditions for all borrowers. Therefore, in order for your loan request to be approved, you need to meet the conditions set forth by the lender. You should understand the process and conditions before taking out a loan to avoid unnecessary risks.

Check the information on the loan contract

Last and equally important note. Before signing a loan contract, you should check the entire contract carefully. Check the information in the contract, interest rate, term and loan amount. If you have any questions or doubts, you should immediately ask the bank staff or the person on the lender side.

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Some banks offer low-interest loans

Currently, there are many reputable banks with low interest rates. The most prominent are the following 3 banks:

Unsecured loans Agribank Bank

As one of the largest banks in Vietnam. Agribank unsecured loans have many different types of loans, depending on your purpose. In addition, the bank is also a prestigious choice for many customers. Agribank is one of the top banks with low interest rates. Moreover, the loan process is also simple and the disbursement time is fast.

Unsecured loans at Agribank

Unsecured loans at Agribank

Vietcombank credit loan

Vietcombank is also one of the prestigious banks in Vietnam. Also satisfy customers by attractive interest rates, about (7.2% - 16% a year). The loan form is relatively diverse, the disbursement time is from 2-3 days. Conditions for borrowers are usually: transfer salary and must be at least 3 million VND or more.

Borrowing credit from VPbank

VPbank is the first bank to apply the form of corporate credit loans. The group of borrowers of this bank includes: individuals, small and medium enterprises, and small businesses. In addition, VPbank also built many incentives for its customers such as: maximum loan limit is 500 million VND for individuals and 3 billion VND for businesses, interest rate is only 0.9% per month.

Hopefully the information about credit loans that this article also provides will be useful to you. Credit is no longer a strange problem for many people. But if you are intending to borrow credit, you should research carefully before borrowing to avoid unexpected problems. Please visit the website for more details.

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