The simple definition of a credit is the provision by a creditor to a debtor of a sum of money or property against a signed commitment to repay within a given period of time. By this definition it is linked to the concept of trust.
Depending on the creditor, credits differ in name, thus distinguishing bank credits from supplier credits. And under these two names the types of credits are numerous:
Real estate credits
Real estate loans are those taken out for the acquisition of a property. They are very multiple and varied, one distinguishes some:
The zero rate loan, the social accession loan, the home savings loan (PEL), the conventional loan, the 1% housing loan, the personalised housing assistance (APL), the all housing loan, the bridging loan (to coincide the purchase of one property with the sale of another)….
Loans finance the majority of household consumption needs for household appliances, cars, audiovisual equipment and even for leisure and travel….
Consumer loans are mostly bank loans but they have the particularity of being limited in the amount borrowed.
Rental credit with purchase option
Used mainly in the automotive industry. It consists of leasing a brand new car for a period of one year or more with a commitment to purchase it at the end of the lease.
Permanent credit (revolving credit)
Or credit by income guarantee, it consists in the provision of a sum of money by the creditor to the borrower, the amount of this sum depends on the income of the client and other credits he has contracted.
Conventional credit (depreciable)
It is the one that the creditor grants to his client to buy a given object or service. The example of student credit is the most characteristic example of depreciable credit.
It is a form of rental with the purchase of the object or property in question. The creditor remains the owner and the borrower pays contractually determined rents; at the end of the term a certificate of release allows the transfer of ownership.