Main types of bank loans in Latvia: consumer loans, mortgages, and entrepreneurial loans

There are often situations when we urgently need money to solve certain current problems. For example, you may need to buy a new fridge to replace a broken one or invest in your business to bring it to another level. In either case, a banking loan (bankas aizņēmums) comes in very handy.

Types of loans: basics and details

In Latvia, there are a lot of organizations offering crediting services. Each of these companies tries to attract clients in different ways, including by offering a wide range of financial services and you can easily get lost in this array of offers. Let’s have a look at the types of banking loans in Latvia and their differences:

1. Consumer credits make up a large proportion of all loans as this segment provides for the issuance of loans to a wide mass of people for virtually any purpose stated in the agreement. These shall not relate to any entrepreneurial activities but are issued for such purposes as the purchase of household appliances, vehicles, re-decoration, travel, medical treatment, you name it. In other words, these are loans issued for personal needs.
2. A mortgage is another popular and widespread type of crediting aimed at the satisfaction of one of the most basic human needs – personal accommodation. This is a loan secured by the acquired real estate. The conclusion of such a loan agreement is accompanied by a security agreement and requires a notarial certification.
3. Entrepreneurial loans are issued for business purposes, such as working capital financing, purchase/rent of vehicles and equipment, marketing, rent of premises, etc. Such loans help people set up new businesses or bring their companies to new levels of success.

Where to get a loan under favorable terms in Latvia?  

The Incredit company issues loans of any type in Latvia and offers very favorable terms for legal bodies. They offer a fast and convenient application (including online), clear and straightforward repayment profiles (they will select the most convenient schedule), a loyalty scheme for long-standing clients, a wide range of credit products, and many other benefits. The company has been successful in the Latvian market for more than 10 years and has won the favor of hundreds of clients all around the country. They exercise an individual approach to each client and carefully examine all the loan applications.