Each loan is different from each other because, each of them is spread over different repayment terms, the higher the credit, the greater the repayment date. The smaller the loan amount, the shorter the repayment period for the customer.
A customer who applies for a loan at a bank already knows how much he wants to borrow and what the budget will be to pay the installments for the bank. The bank informs the customer about repayment dates and the customer decides how long it will take.
The bank and applies for a loan of USD 200,000 thousand
He wants to devote this loan to the purchase of a new van so he does not have such cash in his home budget, so the bank is the only solution for him and for his future to be able to ensure that he gets the life of his loved ones. Mr. Kowalski deals with transporting people for long and short routes but wants to expand his business so he has to buy a new vehicle.
The bank checks and after a short time can receive a loan in the amount of which he dreams but it involves a large interest and long repayment period. Given USD 200,000,000.
For a year you cannot take such a loan for only 3 years, then it is convenient because the installments that you will have to pay will not be so big and it will not burden the budget enough to be able to repay the loan. Mr. Kowalski can continue to operate on the market and develop.
Credits if we talk about them as transfused
The example explains why each one is different. The amount decides the most here if we are talking about repayment dates, it is the determinant of the loan’s timeliness. Therefore, it is not possible to determine in advance what the loan repayment date will be, because each loan granted is taken individually by the banks’ calculators, they check and say how the loan will be repaid on what terms and dates of repayment of individual loan installments.
The money the customer is applying for is a key word because we come to the bank, i.e. to the appropriate representative who tells us everything from and to the given credit offer has the ability to calculate at what time, for example, we could repay the amount due, but it is more about timeliness and the program which is calculates the average amount the customer will pay back to the bank.
Such a program suggests which credit we can also count on if we want USD 100,000. And, for example, a bank representative can tell us not about holding such a loan, because the installments for my situation will be very high and the customer will not be able to pay the debts and it will coincide with the time we want.