Credit or loan
Taking into account that we can define a credit or loan as a financial operation by means of which a person or entity delivers a certain amount of money to another, we could say that the conditions will be all those circumstances applicable to that operation that will determine when and what amount should Be reinstated to the provider.
That is, for an entity to grant a loan, it imposes on the person who will receive it a series of obligations of essential fulfillment. For example, the determination of the time in which the credit must be fully repaid, is already a condition that imposes who lends the money.
Another important condition is the interest rate that is applied to the operation, which is no more than the extra amount of money that the company that lends the money will earn, or in other words, what it will charge for having performed that service.
Nominal interest rate
Sometimes, there is talk of a nominal interest rate, but the most reliable and transparent calculation for the person who is going to receive the loan is the APR (Annual Equivalent Rate). The APR adds to the nominal interest rate the possible management fees and expenses applicable to the loan.
These commissions also fall under the conditions imposed when applying for a loan. There are commissions of various types and not all are applied by all loan companies. In fact, many eliminate commissions on certain promotions at a certain time or for a specific amount. Within the wide range of commissions there are those of opening, study, cancellation or partial amortization, among others.
As the loan specified a specific period of repayment of the initial amount and its corresponding interests, the breach of this commitment also usually leads to the application of conditions established by the company as a general rule. Thus, the fact of requesting a postponement or extension with respect to the period prescribed in advance implies additional charges that will entail recalculating the debt.
But it is even worse to exceed the fixed term without having satisfied the debt, because the applicable conditions are even tougher, fixing a series of extra charges and consequences such as the inclusion of the client in the files of delinquent and unpaid as Credit Institutions, which means many future disadvantages for the user, both when applying for another loan and for undertaking some type of business.