Difference between institutional credit and loans and non institutional credit
Basically there are two types of loan institutional loan or credit and non institutional source of credit.institutional source of credit are generally those types of lenders who are registered or affiliate with govt. And they are generally controlled or guided by the guidance of financial regulator of the country, as it said mostly finical regulator of the country is central banks
Institutional source of loan s are national banks, mini banks, union credit banks or private banks that are affiliates under central bank of the country.
Institutional loan are work under the guidance of central bank, they cannot charge the more interest rate than given by central bank guidelines.
All the national banks or private register banks work under it, generally institutional source of loan is more preferable then non-institutional loan, they reason is they are more affordable in nature and more secure and somehow more legit way to get the money.
Non institutional source of loan
Non institutional loans are given by a individual or a group of people on their own terms and condition, they are not bound by finical regulator of the country, even some case the lender even cannot go to the court of the country to claim to recover money, because they don't have any proper paper work and loan in itself is unsecured types of loan. Here are following types of non-institutional loan
Loan from friends and relative
Loan from friends are relative is best types of loan that generally taken or given on the integrity and trust between the people, its is basically given to help other individual at the time of emergency by the friends and relative, some time money is given interest free.
Loan from loan shark
Loan shark are the private individual, who will give short term loan at extremely high interest rate and they are UN-registered lenders and they will charge whatever interest rate they want, they sole purpose two give money is to double up there profit as soon as possible,if you need a loan shark asap then you can check it here.
Money lenders
Money lender are people who give money to any buddy, with a fix amount of interest rate and generally it is higher then banks and credit union but somehow it can be afford. Instead of money they will take precious valuable things from the person as a security, like gold, property papers. They will give loan for 1-2 year span of time.
Basically there are two types of loan institutional loan or credit and non institutional source of credit.institutional source of credit are generally those types of lenders who are registered or affiliate with govt. And they are generally controlled or guided by the guidance of financial regulator of the country, as it said mostly finical regulator of the country is central banks
Institutional source of loan s are national banks, mini banks, union credit banks or private banks that are affiliates under central bank of the country.
Institutional loan are work under the guidance of central bank, they cannot charge the more interest rate than given by central bank guidelines.
All the national banks or private register banks work under it, generally institutional source of loan is more preferable then non-institutional loan, they reason is they are more affordable in nature and more secure and somehow more legit way to get the money.
Non institutional source of loan
Non institutional loans are given by a individual or a group of people on their own terms and condition, they are not bound by finical regulator of the country, even some case the lender even cannot go to the court of the country to claim to recover money, because they don't have any proper paper work and loan in itself is unsecured types of loan. Here are following types of non-institutional loan
Loan from friends and relative
Loan from friends are relative is best types of loan that generally taken or given on the integrity and trust between the people, its is basically given to help other individual at the time of emergency by the friends and relative, some time money is given interest free.
Loan from loan shark
Loan shark are the private individual, who will give short term loan at extremely high interest rate and they are UN-registered lenders and they will charge whatever interest rate they want, they sole purpose two give money is to double up there profit as soon as possible,if you need a loan shark asap then you can check it here.
Money lenders
Money lender are people who give money to any buddy, with a fix amount of interest rate and generally it is higher then banks and credit union but somehow it can be afford. Instead of money they will take precious valuable things from the person as a security, like gold, property papers. They will give loan for 1-2 year span of time.