closed-end credit loans

Guest 0.10 Dollars($)

Can I have some information on closed-end credit loans? What is the maximum period for which it is provided?

Guest 0.10 Dollars($)

Hi Brad,

Closed-end credit is an agreement where credit is to paid in full along with any interest and finance charges over a definite period of time.

Most real estate and automobile loans fall under this agreement.

Nich

Guest 0.10 Dollars($)

This type of consumer loan is provided to customers for purchasing goods or services. In closed-end credit loans a fixed amount of money is provided for a fixed period of time and for a specific purpose.

Money is provided at one time in a lump sum. Lots of banks and other financial institutions offer closed-end credit facilities.

Angel

blue · Posted: Tue Jan 17, 2006 1:33 pm Post subject:

Hi Brad,

A closed-end credit loan is usually offered for a maximum period of five years or less. The reason for applying for the loan has to be mentioned.

The repayment can be done in monthly installments but the repayment has to be completed in a specified period of time. In this type of loan, the goods purchased is kept as collateral for the loan.

The plans are same for this type of loan with almost all the banks and financial institutions but the interest rate may vary.

It is always better to shop around for a good rate.

Regards,
Blue

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