It is not the same credit as a loan

Although ordinary credit loan used synonymously, banks and financial institutions make a clear difference between them, and given that these differences affect us as debtors (in the capital, interest and repayment terms), we should know.

Concession
The loan is allocating a specific amount to the client to perform a specific project (a mortgage, for example) that will be repaid in regular installments by paying a portion of capital and interest generated on each payment (monthly, trimester or biannual). It is a financial tool fixed and invariable conditions, governed by a contract, it is necessary for the enjoyment of which offer him a guaranteed on the amount allocated (a property, for example).

The credit is the client who decides how much it will take up the bank offers (for example, the maximum amount we allow the cards).

Interests
In lending, the bank charges interest from the first day of delivery the customer money, no matter what the money is used or not.

In credit, only pay interest on the amount used, and is the client who sets the amounts and repayment terms, within a range established by the bank. The interest rates are higher than in the loan and shorter repayment periods.

Renewal
Once its life (the return) of the loan, no renewals allowed.

You can renew a loan over and over again, asking and even raising the maximum amount available to the client.

Utility
The loan is used to purchase goods.
The provision for greater liquidity.