A single sentence tip : 금전대부(財貸費)란 주요 금액, 기간(상환기일), 이자율 등을 명시한 계약을 말한다. 대부금이란 돈이나 물건을 빌려주는 것을 말한다. 끝났어.
Loans & Interest
Secured loans
A secured loan is one where the borrower commits a valuable item (such as a car or piece of real estate) as security.
A mortgage loan is a very popular form of debt instrument that many people use to buy a home. The money is used in this arrangement to buy the property. But until the mortgage is fully repaid, the lending institution is granted security in the form of a lien on the home's title. The bank would have the legal authority to seize the home and sell it in order to recoup any amounts owed to it in the event that the borrower defaulted on the loan.
In some cases, a loan obtained to buy a new or used car may be secured by the vehicle, much like a mortgage is secured by real estate. The length of the loan period is significantly shorter and frequently corresponds to the car's usable life. Direct and indirect vehicle loans come in two varieties. A direct vehicle loan occurs when a bank extends credit to a customer directly. In an indirect auto loan, a car dealership serves as the go-between for the bank or other lending organization and the customer.
Unsecured loans
Unsecured loans are financial obligations that are not backed by the collateral of the borrower. These may be offered by financial institutions under a variety of names or marketing packages, including:
- Credit Card debt
- Lines of Credit or credit facilities
- Personal Loans
Types of Loans
Depending on how they are used, loans from Korean commercial banks are separated into overdrafts, bill discounts, loans on bills, and loans on documents.
- By acquiring the bills that the borrower has collected after deducting the interest accrued from the date of bill discounting to the date of maturity, a financial institution can provide the borrower with funds.
- By naming the bank as the beneficiary of issued promissory notes, a loan on bills enables the borrower to receive funds. These are typically employed to provide businesses with short-term working capital loans.
- A loan on documents enables the bank to request a bond of debt from the borrower as opposed to a bill. These are typically employed for long-term facility funding, private loans that do not permit refinancing before the point of repayment, and loans tied to special contracts.
- Within the bounds of the loans on overdrawn accounts stipulated in the contract between the checking account holder and the bank, an overdraft enables a bank to offer payment service on checks issued in excess of the amount of a checking account in the form of an automatic loan.
Loans on bills are the most popular kind of credit provided by banks; these loans have more advantages than loans on papers since it is possible to acquire bills that are covered by both the Bills of Exchange and Promissory Notes Act and civil law pertaining to loans for consumption contracts.
Due to banks' capacity to get loans from the Bank of Korea (BOK) using such bills as collateral security, loans secured by bills are also desired.
Loans Classifications
The Monetary Policy Committee of the BOK (Bank of Korea) announces the ratio, which as of end-June 2011 was 47 percent or higher for national banks, 62 percent or higher for local banks, and 34 percent or higher for Korean branches of international banks.
Installment-savings-related loans
Loans for business acquisitions
In order to mitigate the negative impacts of the usage of commercial bills and to encourage cash payments in company transactions, loans for corporate purchases were launched in May 2001. With this sort of loan, a supplier provides a bill of exchange when the goods supplied is complete, designating the buyer as the payer and the money made for the goods as the amount payable. The buyer obtains a business purchase loan up to the maximum amount determined by the loan provider at the time of payment and settlement of the bill of exchange the bank to collect the payment upon the supplier's request.
The length of a loan for business purchases is independently chosen by the provider taking into account the buyer's financial situation and the actual loan time needed. The loan's amount is predetermined and falls within the parameters of the purchase amount (the amount of the bill of exchange issued by the provider). Only corporations with business licenses are eligible to get loans for corporate acquisitions. Business purchase loans are not permitted for subsidiaries of the top 35 linked conglomerates.