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Definitions
Directory
Dictionary > Definitions > Economy > Credit
Credit
Definition
Resulting from Latin credere who mean "to believe" and creditum "what is entrusted", the credit gathers the activities related to the loan of money.
Description
A credit is often carrying an interest whose is indebted the borrower (or debtor) with his creditor, related to the duration of the loan. With this interest are added also various insurances, expenses and commissions which constitute the TEG (total effective rate), i.e. the annual interest rate, all expenses included/understood. In a credit, one distinguishes the loan atfluctuating rate and the loan atfixed rate. Various types of appropriations are proposed, according to the destination of the funds: loan on real property, consumer credit or credit car are most current. One finds also the credit personal, the credit work, etc. Also, those are classified according to their duration: - of 1 day at 2 years: short-term credit - from 2 to 7 years: medium-term credit - more than 7 years: long-term credit
Author
Aziz
Author Email
azizjipsbd@yahoo.com
References
Definitions to be consulted