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Pollock Building, 9-10

Tak Hing St, Yau Ma Tei, Hong Kong


In finance, a loan is the lending of money by one or more individuals, organizations, or entities to other individuals, organizations etc. The recipient incurs a debt and is usually liable to pay interest on that debt until it is repaid as well as to repay the principal amount borrowed.

A loan is a sum of money that one or more individuals or companies borrow from banks or other financial institutions so as to financially manage planned or unplanned events. In doing so, the borrower incurs a debt, which he has to pay back with interest and within a given period of time.

A loan is an arrangement under which a lender allows another party the use of funds in exchange for an interest payment and the return of the funds at the end of the lending arrangement. Loans provide liquidity to businesses and individuals, and as such are a necessary part of the financial system.

The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. In many cases, the lender also adds interest and/or finance charges to the principal value which the borrower must repay in addition to the principal balance. Loans may be for a specific, one-time amount, or they may be available as an open-ended line of credit up to a specified limit. Loans come in many different forms including secured, unsecured, commercial, and personal loans.

*A loan is when money is given to another party in exchange for repayment of the loan principal amount plus interest.
*Loan terms are agreed to by each party before any money is advanced.
*A loan may be secured by collateral such as a mortgage or it may be unsecured such as a credit card.
*Revolving loans or lines can be spent, repaid, and spent again, while term loans are
fixed-rate, fixed-payment loans.


A loan is a commitment that you (the borrower) will receive money from a lender, and you will pay back the total borrowed, with added interest, over a defined time period. The terms of each loan are defined in a contract provided by the lender.

A loan gives you access to the cash you need today, and lets you repay those funds over a period of time. In exchange for this convenience, you’ll need to pay extra fees in the form of interest. It’s important to understand the basics, such as how much you can afford to borrow, what your responsibilities are, and how much your loan will cost you. That way, you can maintain a good credit rating, minimize your costs, and continue to enjoy the best rates and terms on all our loan products.

When used wisely, a loan can help you achieve your financial and personal goals quicker. It can help you make a big purchase fast, take advantage of a great investment opportunity, or pay less interest on your credit card balances or other debts. It can also give you the funds you need to go back to school or pay for your children’s


The terms associated with a loan are contained within a promissory note. These terms may include the following:

A. The interest rate to be paid by the borrower, which may be a variable or fixed rate.
B. The maturity date of the loan.
C. The size and dates of the payments to be made to the lender.
D. The amount of any collateral to be posted against the note.


1. Secured Loans.
Secured loans are business or personal loans that require some type of collateral as a
condition of borrowing. A bank or lender can request collateral for large loans for which the money is being used to purchase a specific asset or in cases where your credit scores aren’t sufficient to qualify for an unsecured loan. Secured loans may allow borrowers to enjoy lower interest rates, as they present a lower risk to lenders. However, certain types of secured loans—including bad credit personal loans and short-term installment loans—can carry higher interest rates.


Secured loans can be used for a number of different purposes. For example, if you’re borrowing money for personal uses, secured loan options can include:

* Vehicle loans
* Mortgage loans
* Share-secured or savings-secured Loans
* Secured credit cards
* Secured lines of credit
* Car title loans
* Pawnshop loans
* Life insurance loans
* Bad credit loans

An Unsecured Loan is a loan that does not require you to provide any collateral to avail them. It is issued to you by the lender on your creditworthiness as a borrower. And hence, having an excellent credit score is a prerequisite for the approval of an Unsecured Loan.


Unsecured loans include :
* Personal loans
* Student loans
* Credit cards—all of which can be revolving or term loans.

A revolving loan is a loan that has a credit limit that can be spent, repaid, and spent again. Examples of revolving unsecured loans include credit cards and personal lines of credit.

A term loan, in contrast, is a loan that the borrower repays in equal installments until
the loan is paid off at the end of its term. While these types of loans are often affiliated with secured loans, there are also unsecured term loans. A consolidation loan to pay off credit card debt or a signature loan from a bank would also be considered unsecured term loans.


You can look at loan types by purpose or by how they function. Here are some basic loan terms borrowers should know. Unless otherwise noted, all are available from banks, credit unions and online lenders


* Personal Loans. …
* Auto Loans. …
* Student Loans. …
* Mortgage Loans. …
* Home Equity Loans. …
* Credit-Builder Loans. …
* Debt Consolidation Loans. …
* Payday Loans. …

Personal loans can be used to pay for nearly any use, though some lenders have restrictions such as no business or education use. They are often used to consolidate existing debt or finance an upcoming expense, like a wedding. Most are unsecured, though secured personal loans are available.

Auto loans are secured loans where the vehicle itself is used as a collateral. It is offered by lenders for new cars, used cars, two wheelers (generally called a Two-wheeler Loan) and commercial vehicles (generally called a Commercial Vehicle Loan).

A loan that is used to pay for a student’s education.

A mortgage loan is a secured loan that allows you to avail funds by providing an immovable asset, such as a house or commercial property, as collateral to the lender. The lender keeps the asset until you repay the loan.

A home equity loan, also known as a second mortgage, enables you as a homeowner to borrow money by leveraging the equity in your home. The loan amount is dispersed in one lump sum and paid back in monthly installments.

A credit-builder loan is different from a traditional loan. With a traditional loan, you might receive money you’re borrowing upfront and pay it back over time. But with a credit-builder loan, you make fixed payments to a lender and then get access to the loan amount at the end of the loan’s term.

In general, a debt consolidation loan is a personal loan you use to pay off existing debt. This type of installment loan is unsecured (meaning you don’t need collateral to secure the loan) and has fixed interest rates and fixed repayment terms, generally ranging from 12 to 60 months or longer.

While there is no set definition of a payday loan, it is usually a short-term, high cost loan, generally for $500 or less, that is typically due on your next payday.


Interest is the price you pay for borrowing money from a lender. That means you won’t just pay back the money you borrowed. You’ll also pay back an additional sum, which is the interest on the loan. Lenders take different approaches to charging interest.


Flexibility: A bank loan allows one to repay as per convenience as long as the instalments are regular and timely. Unlike an overdraft where all the credit is deducted in go. Or a consumer credit card where the maximum limit cannot be utilised in one go.

Loans are not very flexible – you could be paying interest on funds you’re not using. You could have trouble making monthly repayments if your customers don’t pay you promptly, causing cashflow problems.

Loans allow for growth in the overall money supply in an economy and open up competition by lending to new businesses. The interest and fees from loans are a primary source of revenue for many banks, as well as some retailers through the use of credit facilities and credit cards.

Remember that, as a borrower, you have the power to choose which loan type works best for you. Research the best terms that you can qualify for, then borrow prudently.

When comparing loan products, consider each loan’s:

1. Loan use.
2. Interest rate.
3. Term length.
4. Monthly payment.
5 Lender rating.

And finally, read the fine print before you sign any loan agreement. You always want to make sure all of the terms are written as you remembered or discussed. Do not hesitate to ask the lender questions. That’s what you’re supposed to do.

Here are five common requirements that financial institutions look at when evaluating loan applications.

1. Credit Score and History. An applicant’s credit score is one of the most important factors a lender considers when evaluating a loan application. …
2. Income. …
3. Debt-to-income Ratio. …
4. Collateral. …
5. Origination Fee.

Various financial institutions has varying criteria for loan applications as per the type of loan availed. However, there are some standard criteria:

* he individual should be 18 years or older age
* Valid ID
* Give details of Bank account
* Proof of residence
* 3 – 6 Months’ salary slips

At Bectic Finance Company Limited, we understand the complications and challenges that come with borrowing money. Whether it be a bank loan or another source, every type of loan has its drawbacks. That’s why we’ve simplified the process for all businesses with recurring revenue.

BECTIC FINANCE COMPANY LIMITED was incorporated on 1988-11-11 as a Private company limited by shares registered in Hong Kong. It’s company registration number is: 0232762.

At Bectic Finance Company Limited, we provide Bank instrument services to our clients global- UK, USA, UAE, Europe, India, China, Asia, Middle East and Africa.

Contact Bectic Finance Company Limited with your request via email and we will provide you with our forms and procedures.

Please contact us for more information on loans and other services we offer. We are open 24/7. 9am-4pm on weekdays, 11am-4pm on weekends:

Website :
Email :
Phone number : +85281924518

Intermediaries/Consultants/Brokers are welcome to bring their clients are 100% protected. In complete confidence, we will work together for the benefits of all parties



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