Young people every day access the internet and acquire new and important knowledge, which comes in a very wide variety.
Today we will focus on 3 basic concepts of business , which are loans, mortgages and the variable rates that they can have. If you are a young person and are looking for ideas to start your own business , these are key concepts that you need to handle.
You need to know what finances are . This is a set of methods that evaluate economic states and values, which can be market values and aggregate values.
These have certain differences and help to keep track of the commercial activities that businesses carry out. This is very important because when it comes to paying taxes, the State needs a way to know when people are trying to cheat and evade taxes.
When the commercial activities of people are studied, the State can have control of how much money it requires from people, since it has different expenses that it has to keep up to date.
In Spain, an example of this is Social Security , which applies to all Spanish citizens. If you want to know or verify your membership number , which allows you to access different benefits, you can enter the aid system of the Spanish government.
What is a loan?
A loan is an action by which a bank or a loan company grants a certain amount of funds to a person so that they can carry out a specific commercial action that would not be possible without the funds allowed by the loan.
This action allows banks and companies to benefit, since it does not need to be paid immediately, the loan is subject to different interest rates which affect the final value that ends up being paid.
Interest rates are very varied and each company or bank establishes them with respect to the parameters required by the place where they are located.
In other words, there are different rules that apply to banks between the different countries of the world and even within the banks of the Spanish territory itself. People usually use these loans to start their own businesses with which they pay the bank.
Loans are difficult to obtain , they are delivered by banks after doing the correct research on the economic actions carried out by the person. However, if it has a series of requirements , you can opt for an immediate loan.
What is a mortgage?
When we see the commercials in which they offer houses and different types of real estate, we see that they name this term. This is an action used by banks through which they provide the customer with a double-edged sword. When someone wants to buy something and the bank does not approve their loan, the person can opt for a mortgage.
This mortgage is a kind of loan, but instead of having so much freedom you need to justify to the bank a way by which you will pay the money that is being borrowed.
In this case, many people mortgage houses, cars, land and others in cases of urgent need for a loan. It is important to note that there are loans that are also used to pay the mortgage itself, creating extensive debt systems.
What are variable rate loans or mortgages?
When we agree to sign a contract for a loan or a mortgage, we agree to certain basic conditions which are present to verify the legal and economic security of both parties to the contract. This is important because it binds the parties to the contract to a legal sentence in the event that any of them do not comply with their obligations.
Among the basic conditions are the interest rates . These indicate that each time a certain amount of time passes, the value owed to the bank increases by a certain percentage.
This creates a profit margin that helps the bank maintain its infrastructure and also generate profit for the company that controls it. If these rates are not subject to a stable regime, but acquire new figures from time to time , they are called Variable Rate Loans or Mortgages.