People always have a loan in their daily activities. This is mainly because many people can use an easy loan agreement to solve their problems. There are some loan types that usually use by people to solve their problems. The loan types are credit, finance, and mortgage. The credit type loans is the terms that used by people to denote the transactions that involving the transfer of money, property, or other people things on promise of repayment, usually in a fixed date in the future. There are some types of credit that well-known by people such as mercantile or commercial credit, investment credit, bank credit, consumer or personal credit, real-estate credit, public or government credit, and international credit.
The mercantile or commercial credit is a credit that use merchant to extend to other to finance the production and the distribution of goods. The investment credit is one of credit option that mostly used by business firms to finance the development of the business firm. The bank credit is a credit that consists of deposits, loans, and the discounts of depository institutions. The consumer or personal credit is a credit type that make individual to meet expense or to purchase goods or service for personal consumption. The real-estate credit is the composed of loans secured by lands and buildings. The publics or government credit is a credit type that represented by bond issues of national, state, and municipal government. The international credit is an extended credit from a government to another or from a national to foreign country through international banking institution that provided with international credit.
The finance is an economic way that focused in providing funds or money for individuals, businesses, and also government itself. The finance usually preferred to use credit to buy goods or service than purchase goods using cash funds or money. In other side, the mortgage is legal instrument that make house or real estate properties to be a security for repayment of a loan. The Mortgage Loans usually become a guarantee from people that they will pay back the loan.