You still don’t know what chirographic loans are? Don’t worry, you’ll find out…
Correspond to credit operations with short and medium term loans that can be granted to a person or a legal firm.
That accepts to repay the sums requested in conjunction with the interest agreed upon through the signing of a document called a promissory note.
What are they?
This type of credit does not have any guarantee in addition to the signed commitment of payment and is basically used to solve very specific and urgent needs in professional or labor activities.
A promissory note is what is used in these types of financial transactions. This is a document that carries the declaration of obligations in which the subscribing party (which is the debtor party) is involved.
It undertakes to pay the beneficiary party (the party with whom it owes the debt) a specific amount granted as a loan within a period of time agreed by both parties.
The term promissory note arises from a statement with which the document begins:”I owe and I will pay.
Although the terms established for the repayment of money are variable, they are usually set according to the operations that are carried out within the business process or in the field of professional activity that the potential debtor exercises.
The operations of the activity involve the business process from the stage of production of goods or services to the final delivery in the hands of the consumer.
But it can also be taken into account that the final consumer does not have to be a person but an end in itself, for example, a seamstress can apply for a credit for the purchase of fabrics in order to make garments that will then be distributed to a store for sale.
What is really taken into account is that the production period is not long because if so, credit is not granted. It is therefore important that the terms of the loan are made very clear in the documents to be signed.
Chirographic loans requirements
To access a loan of these characteristics you have to be (Affiliate, retired or pensioner).
A repayment term corresponds to the amount of time a person is granted for repayment of the sums he or she has borrowed. To make clear the types of deadlines it is good to keep in mind what these terms refer to in the field of economics:
- The Short Term: refers to a period of time that cannot exceed one month. In some circumstances, some institutions consider the short term to be within the range of 0 to 6 months.
- The Medium Term: this type of term extends from one month to approximately one year. Some financial institutions propose medium-term periods between 6 months and 1 year, depending on the interest rates established.
- Long term: the long terms involve periods of time greater than one year, so they are long term terms. In some cases the long term involves 2 or 3 years or more.
Although this information may serve as a reference, it should be borne in mind that these ranges are variable and that in some cases, when companies start operating, short-term loans with payment periods of up to 5 years may be granted.
This is because many financiers provide advantages to new entrepreneurs or entrepreneurs and thus guarantee the establishment of the business activity and its solidification for the repayment of the sums requested as loans.