A loan or a credit?

Before going to license money lender in Singapore you should figure out what the loan and credit are and know some important issues.

A loan is a type of economic relationship where one party takes (the borrower) and the other lends (the lender) for free temporary use material assets, that must be returned to the owner in the same condition (taking into account depreciation) in which they were issued, or contractual condition.

This leads to several important points:

Items or property cannot be replaced by similar items upon return. Objects or property that are consumed during use, for example, all types of fuel, food, etc. cannot be the object of a transaction on a loan.

A SG city loan is always granted free of charge. If this condition is violated, other forms of economic relations arise: credit, rent, hiring.The borrower has only the right to use the received thing. Otherwise, we are talking about safekeeping. If the right to dispose is granted, then there is a loan.The object of the loan may be household items, land, residential and industrial premises, equipment, vehicles, jewelry and works of art during various exhibitions, etc.

Consumer credit is not an integral part of a loan. These two types of economic relations do not consist in kinship and do not intersect anywhere (in everyday life they are actively replaced, which does not lead to legal consequences).

A loan cannot be issued on a paid basis. This term can be used only in informal communication, where the accuracy of the wording does not matter.

It is impossible to give a simple and understandable answer, which is better - a loan or a credit aid. After all, here we are talking about lending completely different means. With a credit aid - this is cash or non-cash money, with a loan - material values.

Image by Tanja-Denise Schantz from Pixabay