Consumer loan plus regulation

Consumer loan plus regulation

In a sense, we have already given the definition of consumer loans when we have defined the credit for the same cause. Having to give a short definition of consumer loan, however, we will say that this is any type of financing granted to a private individual and his family to purchase services and goods designed to satisfy personal needs, with the exception of mortgages. Any goods or services that are instrumental to the work activity of the natural person should also be excluded from consumer loans. Ultimately, consumer loans are to be understood as any type of financing directed only towards the purely private sphere of the consumer.

Financing granted to a private individual 

Financing granted to a private individual 

The disbursement of consumer loans takes place in two types or ways: 1) through cash (personal loan); 2) or through the direct purchase of the goods and / or services by the consumer (finalized loan). In the first case, the object of the consumer loan is at the total discretion of the debtor who will allocate the one-off sum as most appropriate, only to then pay it in installments to the lender.
In the second case , however, consumer loans are perfected with the direct purchase of the property from an operator (shop) and in this case the lender will immediately pay the purchase to the operator, while the consumer will pay the installment to the lender.
As regards consumer loan rates, we can say that, compared to other types of financing, they are on average higher given the nature of this credit sector (see interest rates on loans).

Having to give a short definition of consumer loan, however, we will say that this is any type of financing granted to a private individual and his family to purchase services and goods designed to satisfy personal needs, with the exception of mortgages. Any goods or services that are instrumental to the work activity of the natural person should also be excluded from consumer loans

 

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