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Loans
Getting a Loan
Gift or Loan?
Nemo Loans |
Loans
What is a loan?
This is where one group (the lender) supplies another group (the
borrower) with an agreed amount of money with the full agreement
that this money will be repaid in full by a set time. A contract is
drawn up between the two parties setting out all the terms and
conditions of the loan. The lender can also stipulate within this
contract that interest payments are to be made on top of the capital
repayments. This is usually agreed when the borrower signs the terms
of the contract, as well as the dates on which all payments are to
be made and by which date the loan must be repaid by in full. Often
the lender will include fines for missed or late payments within the
loan contract. These can vary between lenders but are often quite
high.
Why get a loan?
Loans can be used for many things such as buying a car, house or
financing higher education. However, due to all the hidden costs
within a loan such as interest payments and late or missed payment
charges, loans are often taken out as a last resort. |
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