The difference is-
Regular Loan- It is contracted for personal use like buying a car, home, paying other debts, etc. Approval of these loans depends upon your personal credit score!
Commercial loan-It is a loan contracted to finance specific business areas! Approval of this type of loan requires a lot of requirements and it also depends from country to country!
A commercial loan is a type of loan that is specifically designed for business purposes, while a regular loan typically refers to a personal loan that an individual might use for various purposes, such as purchasing a car, financing a home renovation, or consolidating debt.
Here are some key differences between commercial loans and regular loans:
Purpose: Commercial loans are intended to finance business-related expenses, such as purchasing equipment, funding expansion, or covering operational costs. Regular loans, on the other hand, can be used for a variety of personal reasons.
Collateral: Commercial loans often require collateral, such as business assets or real estate, to secure the loan. Regular loans may or may not require collateral, depending on the lender and the borrower's creditworthiness.
Terms: Commercial loans typically have longer repayment terms than regular loans, and the interest rates may be higher. Regular loans often have shorter repayment terms and lower interest rates.
Borrower eligibility: Commercial loans may have stricter eligibility requirements, including a minimum credit score, a minimum amount of time in business, and a certain level of revenue. Regular loans may also have eligibility requirements, but they are generally less strict.
In summary, commercial loans are specifically designed for business purposes and often have more stringent requirements than regular loans, which are more flexible and can be used for personal reasons.