Credit and loan – differences

Credit and loan have in common that their recipient is in debt. These two concepts are confused. This is clearly seen in the case of consumer credit, which is theoretically a loan.

The purpose for which he will spend the money


Well, the consumer credit recipient does not have to indicate the purpose for which he will spend the money. It is different in the case of typical loans, which even get the appropriate translating names for what they are intended: car, construction, housing. This is because the borrower does not become the owner of the amount withdrawn from the bank.

Another difference between a loan and a loan is who can give them. A quick loan can be granted by an institution or an individual. On the other hand, loans are granted only by banks.

Loans are regulated by civil law


While loans are regulated by banking law. In the case of credit, everything is more formal – the money that you receive does not belong to the bank, so the repayment deadline is more precisely defined. The subject of the loan is cash, credit – cashless money (usually a transfer).

Credit and loan costs are also different. Since the loan is granted only by banks, it is known that he is entitled to a commission.

We also pay for the service, and the bank must earn somehow

We also pay for the service, and the bank must earn somehow

However, it is difficult to pay for a loan, e.g. to family or friends who can also grant it. Of course, this does not mean that all loans are free because you can arrange an interest rate. If the amount exceeds PLN 500, you should sign a contract, if only as proof in the event that we demand a refund by court.

In the case of credit, this contract must always be signed. As you can see, credit and loan differ significantly and these terms should not be used interchangeably.

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