What is a credit loan? What are the important characteristics of credit loans that you need to know?

What is credit?

What is credit? This is understood as an economic relationship between a lender and a borrower, in which the lender transfers the right to use an amount of assets (money, goods, services) to the borrower for a certain period of time. When the debt is due, the borrower must repay the borrowed asset, usually with interest.

This type of loan can be classified according to the following criteria:

• According to participating subjects: individuals, businesses, state, international.
• According to purpose of use: consumption, production, business, investment.
• By term: short term, medium term, long term.
• According to interest rate: fixed interest rate, floating interest rate.

Quyen is a creative copywriter with a passion for fintech. a degree from the Ho Chi Minh University of Economics. After graduating from the UEH (Ho Chi Minh Economics of University), she's constantly expanding her knowledge through investment and financial literacy courses, seminars, and conferences. Quyen also has experience in banking and credit. Her articles draw on her background in finance to help readers make informed decisions.