You already have a stable job that can guarantee you the repayment of a loan from a given bank without any difficulty. Would you like to start a new loan but find it difficult to differentiate personal credit from professional credit? In this case, this article will allow you to shed light on personal loans vs business loans so that you are not mistaken between the two when you decide to apply for a loan.
Personal credit / personal loan
A personal loan is a contract established between an individual and a banking establishment that stipulates that the bank will make available to the given person a certain amount of money so that he can carry out his personal projects. Note that this amount must be repaid in a maximum of 5 years with the related interest. This means that the individual beneficiary of the credit will not have to wait years to carry out his projects.
Note that you won't have to detail everything you plan to do with your money. Just be sure to do things properly, such as buying a car, doing certain jobs, or even for your hobbies. You could even use the loaned amount simply as extra cash in your budget.
You will have the right to apply for insurance throughout the validity period of your personal loan. Finally, do not forget that you will have 14 days of reflection before receiving your money. During this period, you can reconsider your decision and cancel your loan request. On the other hand, you must understand that the bank or credit institution is obliged to make a thorough investigation of your profile before validating or not your loan project.
Business loan/business credit
This type of loan is strictly reserved for professionals themselves. Among these, you can cite craftsmen and traders as well as very small businesses. All people who practice in the liberal field can also request a business loan, such as a pharmacist or a lawyer for example.
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