What is a bank loan?

A bank loan is the fact for a credit institution, to offer a financing solution, by making funds available to a beneficiary, without requiring immediate repayment. Several characteristics are to be taken into account in a bank loan: the amount borrowed, the duration of the loan, the borrowing rate and any costs.

You apply for a bank loan when you need a sum of money to carry out a project. When a financial institution accepts your loan request, you then sign together to a credit agreement which determines the conditions of the loan and its repayment.

Commitment to the credit agreement.

Borrowing money is important because it involves two people financially. This mutual commitment is recorded in a contract which collects the two signatures. This agreement describes very precisely how the sum of money will be given to the borrower and how the latter will fulfill his obligations (duration and monthly payments).

Payment of principal and interest.

The total amount due to pay off your loan is made up of several elements: the capital (which is the exact amount you are borrowing), interest calculated from a rate defined in the contract, optional insurance premiums and any filing fees. Other guarantees may also be offered depending on the type of loan.

Different types of bank loan.

Repayment of a bank loan ends when the loaned capital, interest and other fees are paid in full. Depending on your needs, there are different types of loan: revolving credit, personal loan, or loan allocated to a property. Sofinco advisers are available to support you and, depending on your needs, present the advantages of each loan.

• Student loan
• Credit works
• Consumer credit
• Credit redemption
• Home loan
• Car loan