Loan and credit – how do they really differ?

Loan and credit – how do they really differ?

We usually use the terms credit and loan interchangeably or rightly? Not necessarily, although in both cases the essence of the case is incurring debt. Formally, loans and credits are definitely different issues, if only because of their legal sources. Find out exactly how a loan differs from a loan, as well as what types of loans you can take using Inspector Rudy.


What is a loan?


From a linguistic point of view, any incurring financial commitment can be considered a loan and in this context a loan is a much broader concept than a loan. Every loan is a loan, but not every loan is a loan. Much more important, however, is the fact that both concepts are defined by the law in Poland. According to him, a loan is a debt incurred under the contract or without its participation, where the legal basis is the Civil Code. Recently, the rules for granting loans by institutions are additionally defined in anti-usury act.

The lender can be any private person – for example, a family member or friend of the borrower. At the same time, loans are granted by institutions specialized in this field that have been operating on the domestic market for years, such as Inspector Rudy.


Credit characteristics

Credit characteristics

Credit is a much narrower concept than a loan. It applies only to financial products specified by the banking law and offered exclusively by banks. However, it should be remembered that not all financial products offered by banks are loans, an excellent example of which are the revolving limits assigned to an account with irregular repayment terms, interest rate and costs. How is this form of financial support different from a loan?

A characteristic feature of the loan is the collection of interest, the amount of which is specified in the contract. Writing down the latter is obligatory for loans, unlike loans, which are free, usually when the borrower and the lender are natural persons. It is also worth noting that in the case of loans, the contract strictly defines their purpose, while in the case of loans it is completely free.


A quick and convenient loan for Inspector Rudy

loan credit

So much theory, however, on the example of loans granted on the Inspector Rudy portal it is easy to explain what additional differences between a loan and a loan are of great importance for many customers. A quick loan over the Internet, by phone or in a branch differs from a loan also in that it does not require as many formalities as in the case of bank loans, and the decision-making process is much faster.

The Inspector Rudy portal also offers the option of using the Ara Ruka product. This type of loan has many features of a loan, such as repayment in installments, but in reality it is not and is not subject to banking law. Thanks to this, a wider group of customers can use this service and get cash faster than it would have been at the bank.