Lending. Credit - what is it, types, functions of credit What does crediting mean
At the moment, many Russian banks offer various loans for various credit conditions... Let's figure out what a person who has never faced the issue of lending should know.
Lending is one of the forms financial relations, in which one party gives a certain amount to the other with the condition of return and guarantee.
Most often, a loan is an urgent form of a loan and is provided to both individuals and legal entities... The lender needs a guarantee that the borrower will return the full amount, so he can require a pledge in the form of certain property or the involvement of a guarantor who will be responsible for the return of funds.
In the life of any person, a situation can happen when money is urgently needed. There are several types of lending. The first of them is an express loan, in which the bank issues a certain amount of money in order to pay for a specific service or purchase a product. All funds are immediately transferred to the account of the company that provides the service to the borrower. This type of lending is processed quite quickly and you only need documents that confirm your identity. The key disadvantage is the high interest rate, reaching 60%, which is not very beneficial for the borrower.
Non-earmarked loans are another method of lending, which includes the receipt by the borrower of an amount for whatever is needed. The bank does not control the use of these funds. In cases where it comes about large sums of money, then the bank may ask to attract a guarantor. The standard package of documents is a citizen's passport, a copy work book last page and income information.
Credit cards are another method of getting money. This is an ordinary plastic bank card on which the bank transfers the loan money to the borrower. The peculiarity of such lending is that the bank does not charge interest for the use of money within a certain initial line. Also, when a certain amount of the loan is repaid, the amount of available money on the card increases.
Car loan - one of the types consumer lending, which implies the receipt of money intended for the purchase of a car. The bank transfers the entire amount directly to the account of the car dealership and requires a deposit, which is the car itself. Also, with such lending is compulsory insurance vehicle from damage or theft.
Mortgage- most complex view lending to date. Buying a home is quite expensive and, more often than not, one person's income is not enough to purchase real estate. Therefore, the mortgage allows you to take out a loan for up to 4 people. The borrower needs to provide a package of documents in order to convince the bank of its solvency to pay. The real estate itself acts as a pledge, and a loan can be taken in any foreign or domestic currency. In this case, the borrower is obliged to insure his life.
The main method for assessing the borrower's solvency is to provide the bank with a certificate of income for the last three months and a photocopy of the last page of the work book. The bank determines whether a person will be able to allocate monthly payment on a loan from your budget. If not, then, more often than not, he is denied extradition.
The big advantage of lending is that you can take the required amount of money right away and not postpone the purchase for a long time. When buying a home with a mortgage, the borrower can be completely sure that the transaction is legally correct and there are no "pitfalls". The main disadvantage is the rather high interest rates. You also need to think about how to repay the loan if the borrower has lost his job or his. When applying for a loan, it is important to pay attention to everything that is written small print and never sign an agreement without looking.
A loan can be issued to a state, a municipal authority, a commercial enterprise or an individual, provided that the interests of the lender and the borrower coincide. A prerequisite is the provision of guarantees of return borrowed money upon the expiration of the loan term.
What is lending, what is it like
Lending is understood as a system of relations between the parties, it implies the provision by one party (lender) to the other (borrower) of a certain amount of funds that must be returned within a specified period. Banks, microfinance organizations, pawnshops, and individuals can act as creditors. As borrowers - government bodies, Individuals and legal entities. When registering some transactions, guarantors or co-borrowers may additionally be involved, who bear subsidiary and joint liability for debt repayment, respectively.
Depending on the appearance, form and organization credit relations, allocate well-established types of loans.
By their purpose
- agricultural;
- consumer;
- industrial;
- trade;
- investment;
- mortgage.
By providing
- unsecured;
- with security.
By type of repayment
- redeemable in one payment;
- repayable in installments.
By types of interest rates
- floating rate;
- with a fixed rate.
Each program has its own characteristics, is accompanied by a varying degree of risk, so the loan conditions differ not only depending on the lender, but also the type of loan.
Popular credits
The lending market is formed based on the needs of borrowers. Today, there are several lending options that are most often used by borrowers.
Microloans of MFOs
Microfinance institutions provide quick and convenient loans. The main reason for their popularity is accessibility. Money can be received according to a simplified scheme without income statement, collateral and guarantors. Many MFIs offer online service credit card, which allows you to apply and receive money without leaving your home. Such loans have significant drawbacks - a high interest rate, which reaches 1-2% per day and a short loan term, which rarely exceeds 30 days.
Bank loans
Banks offer a wide selection credit programs, which allows you to get the right amount for any purpose. The conditions for granting loans are among the most favorable. The interest rate ranges from 11-23% per annum, depending on the chosen program.
In addition to traditional loans, banks issue credit cards. Its holder can use it at his own discretion (make purchases, withdraw money in cash, keep his own funds). Until credit limit is not used, the borrower does not have obligations, which allows using the credit card as a reserve.
To buy an apartment, car, land plot there are special programs. The interest rate on them is 3-5% lower than that of consumer loans, and the loan term can be up to 30 years (for mortgages).
To the disadvantages bank loans refers complicated procedure registration and high requirements for the borrower, which often becomes the reason for refusal.
Lombard lending
Pawnshops lend exclusively against the security of liquid property. It can be household appliances, computer equipment, antiques, jewelry, and even vehicles... Credit history, the borrower's income does not affect the decision to issue a loan. The assessment of the pledged item is carried out by the pawnshop employees, after which the maximum amount available for issuance is announced (40-70% of the assessed value). The registration procedure takes from 15 minutes to 3-4 hours. The disadvantage of such lending is a high interest rate (4-7% per month), and the term is usually no more than a month. It should be noted high risk loss collateral in case of violation of obligations by the borrower.
Lending is one of the factors determining the development of the economy. It is a source of investment for enterprises and stimulates production by increasing the purchasing power of the population. The state acts as a regulator, implementing monetary policy aimed at increasing the availability of lending and reducing its cost.
The emergence of credit as a special form of value relations occurs when the value released from one economic entity for some time does not enter a new reproduction cycle. Thanks to the loan, it is transferred from the entity that does not use it (the lender) to another entity in need of additional funds (the borrower).
Loan functions
Credit functions: redistributive, creation of credit instruments of circulation; reproductive and stimulating.
Due to the redistribution function, the temporarily released value is redistributed. It can be carried out at the level of enterprises, industry, state ( national economy), the world economy (world economy). The redistribution is subject to a refund.
The function of creating credit instruments of circulation is associated with the emergence of the banking system. Thanks to the possibility of storing funds in bank accounts, the development of non-cash payments, and the offset of mutual obligations, credit means of circulation and payment have appeared.
The reproduction function of the loan is manifested in two ways: 1) obtaining a loan by the borrower ensures it the required volume capital to maintain entrepreneurial activity(production). By means of credit, the reproduction of an economic entity (commodity producer) as such occurs; 2) as a result of the provision of credit to various enterprises, both the best and the worst conditions for the production of goods (quality, cost, price) are reproduced.
The stimulating function of credit is manifested in the possibility of developing production without having its own funds. Thanks to the loan, enterprises receive a powerful incentive for further development.
Loan forms
Monetary form of loan involves the transfer of a specified amount of money for temporary use. The monetary form is predominant in modern conditions economy. This form of credit is actively used by all subjects economic relations(by the state, enterprises, individual citizens) both within the country and in external economic turnover. In the monetary form of the loan, there is no equivalent commodity-money exchange, but there is a transfer of value for temporary use with the condition of returning after a certain time and, as a rule, with payment of interest for using it.
Mixed loan arises in the case when the loan was provided in the form of goods, and returned in money, or vice versa - provided in money, and returned in the form of goods. The latter option is often used in international settlements, when payments for received cash loans are made by deliveries of goods. In the domestic economy, the sale of goods in installments is accompanied by a gradual return of credit in cash.
The role of credit
Credit plays an important role in self-regulation of the amount of funds required to complete economic activity... Thanks to the loan, enterprises have at any time such an amount of money that is necessary for normal operation.
The role of credit is important for replenishing circulating assets, the need for which is not stable for each enterprise; it changes depending on working conditions: market, natural, climatic, political, etc.
The role of credit is great for the reproduction of fixed assets. Using a loan, an enterprise can improve, increase production much faster than in its absence.
The role of credit is important in regulating liquidity banking system, as well as in the creation of an effective mechanism for financing public expenditures.
Loan types
In different cultures
Loan in Mesopotamia
Credit to the Inca Empire
Administrative officials kuraki during lean years from storage facilities that were filled with crops obtained from the fields chakara the ruler of the Inca, with the permission of the Inca himself, they gave food to the poor people of the settlement, and at the same time they made reports on what was obtained in this way. Therefore, these deductions were made as a loan, that is, it can be argued that the Incas had an institution financial lending... Also, everything that, as Pedro Cieza de Leon pointed out in his Chronicle of Peru, was given out to individual residents from the warehouses of the Inca ruler, was handed over to the account of the Kamayos employees who dealt with the kipu. The kippah showed what each Indian did, and everything he did was deducted from him from the tax that he was supposed to give. But the return of the loan was not done by the same types of products, but was paid different kinds works. The same was the case with the issuance of provisions from the warehouses of trains for an entire community or province:
... if suddenly some bad year, they also ordered the opening of warehouses and lent the provinces with the necessary provisions, and then, in the year of abundance, they gave and delivered to them [that is, to the warehouses] again, according to their account, a certain amount.
Cieza de Leon, Pedro. Chronicle of Peru. Part two. Chapter XIX.
Payroll loan
see also
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Notes (edit)
Literature
- Money, credit, banks: Textbook / Ed. O. I. Lavrushina. - M .: Finance and statistics, 2000 .-- 464 p.
- Finance and Credit: Textbook / Ed. prof. M.V. Romanovsky, prof. G. N. Beloglazova. - M.: Higher education, 2006. - ISBN 5-9692-0039-5.
Excerpt from Credit
With each new blow, fewer and fewer accidents of life remained for those who had not yet been killed. The regiment was standing in battalion columns at a distance of three hundred paces, but in spite of the fact that all the people of the regiment were under the influence of the same mood. All the men of the regiment were equally silent and gloomy. Rarely was there a talk between the rows, but this talk fell silent every time a hit hit and a shout: "Stretcher!" Most of the time the people of the regiment, on the orders of their superiors, sat on the ground. Who, having taken off the shako, diligently dismissed and reassembled the assemblies; some with dry clay, sprinkling it in their palms, polished a bayonet; who stretched the belt and tightened the buckle of the sling; who diligently straightened and bent over the new rolls and changed their shoes. Some built houses from Kalmyzhes of arable land or wove braids from stubble straw. Everyone seemed to be completely immersed in these activities. When people were wounded and killed, when stretchers were drawn, when ours were returning back, when large masses of enemies were visible through the smoke, no one paid any attention to these circumstances. When the artillery and cavalry passed ahead, the movements of our infantry could be seen, approving remarks were heard from all sides. But the greatest attention was deserved by completely outside events that had nothing to do with the battle. As if the attention of these morally exhausted people rested on these ordinary, everyday events. An artillery battery passed before the front of the regiment. In one of the artillery boxes, a tie-in bar intercepted the line. “Hey, pinch it! .. Straighten it! Will fall ... Eh, they do not see! .. - all over the regiment shouted in the same way from the ranks. On another occasion, a small brown dog with a firmly raised tail drew general attention, which, God knows where it came from, ran out in front of the ranks with a preoccupied trot and suddenly squealed from a nearby shot and, tail between his legs, rushed to the side. Cackles and shrieks echoed throughout the regiment. But entertainment of this kind continued for minutes, and people had already stood for more than eight hours without food and without work under the enduring horror of death, and the pale and frowned faces grew paler and frowned.Prince Andrew, just like all the men of the regiment, frowning and pale, walked up and down the meadow next to the oat field from one border to another, with his hands folded back and his head bowed. He had nothing to do or order. Everything was done by itself. The killed were dragged to the front, the wounded were carried away, the ranks closed. If the soldiers ran away, they immediately returned hastily. At first, Prince Andrew, considering it his duty to excite the courage of the soldiers and set an example for them, walked up and down the ranks; but then he became convinced that he had nothing and nothing to teach them. All the forces of his soul, just like that of every soldier, were unconsciously directed to refrain only from contemplating the horror of the situation in which they were. He walked through the meadow, dragging his feet, scraping the grass and observing the dust that covered his boots; then he walked with long strides, trying to get into the footprints left by the mowers in the meadow, then he, counting his steps, made calculations how many times he had to walk from border to border in order to make a mile, then he shuffled the wormwood flowers growing on the border, and he rubbed these flowers in his palms and sniffed at the fragrant bitter, strong smell. Nothing remained of all yesterday's thought work. He thought of nothing. He listened with tired hearing to the same sounds, distinguishing the whistle of flights from the roar of shots, looked at the peering faces of the people of the 1st battalion and waited. “Here she is… this one is back to us! - he thought, listening to the approaching whistle of something from a closed area of smoke. - One, the other! Yet! Horrible ... He stopped and looked at the rows. “No, it did. But this is horrible. " And he again began to walk, trying to take long steps in order to reach the border in sixteen steps.
Whistle and blow! Five paces from him, dry earth exploded and a core disappeared. An involuntary chill ran down his spine. He glanced again at the rows. Probably vomited many; a large crowd gathered at the 2nd Battalion.
“Mister Adjutant,” he shouted, “order not to crowd. - The adjutant, following the order, approached Prince Andrey. On the other side, the battalion commander rode up on horseback.
- Watch out! - heard a frightened cry of a soldier, and, like a bird whistling on a fast flight, squatting to the ground, two steps from Prince Andrey, beside the horse of the battalion commander, a grenade flopped softly. The horse first, without asking whether it was good or bad to express fear, snorted, jumped up, almost dropping the major, and bounced off to the side. The horror of the horse was communicated to the people.
- Get down! - shouted the voice of the adjutant, lying on the ground. Prince Andrew stood indecisively. The pomegranate, like a top, steaming, spun between him and the lying adjutant, on the edge of arable land and meadow, near a wormwood bush.
“Is this death? Thought Prince Andrey, looking with a completely new, envious look at the grass, at the wormwood and at the stream of smoke curling from the spinning black ball. - I can’t, I don’t want to die, I love life, I love this grass, earth, air ... - He thought this and at the same time remembered that they were looking at him.
- It's a shame, mister officer! He said to the adjutant. - What ... - he did not finish. At the same time, an explosion was heard, the whistle of fragments of a seemingly broken frame, a stifling smell of gunpowder - and Prince Andrey rushed to the side and, raising his hand up, fell on his chest.
Several officers ran up to him. On the right side of his belly, a large stain of blood was spreading over the grass.
The summoned militiamen with a stretcher stopped behind the officers. Prince Andrew was lying on his chest, his face down to the grass, and breathing heavily, snoring.
- Well, come on!
The peasants came up and took him by the shoulders and legs, but he groaned pitifully, and the peasants, exchanging glances, let him go again.
- Take it, put it in, it's all one! - shouted someone's voice. Another time they took him by the shoulders and put him on a stretcher.
- Oh my god! My God! What is it? .. Belly! This is the end! Oh my god! - voices were heard between the officers. “She buzzed by a hair's breadth,” said the adjutant. The men, having adjusted the stretcher on their shoulders, hurriedly set off along the path they had trodden to the dressing station.
- Keep in step ... Eh! .. peasant! - shouted the officer, stopping by the shoulders the peasants who were walking unevenly and shaking the stretcher.
- Fix it up, Khvedor, and Khvedor, - said the front man.
“That's it, it's important,” the back one said happily, hitting the leg.
- Your Excellency? A? Prince? - Timokhin, who ran up, said in a trembling voice, peering into the stretcher.
Prince Andrew opened his eyes and looked from behind the stretcher, into which his head had sunk deeply, at the one who spoke, and again dropped his eyelids.
The militiamen brought Prince Andrey to the forest, where the trucks were stationed and where there was a dressing station. The dressing station consisted of three outstretched tents with rolled-up floors on the edge of a birch grove. There were trucks and horses in the birch grove. The horses in the ridges ate oats, and the sparrows flew to them and picked up the spilled grains. The crows, smelling the blood, croaking impatiently, flew over the birches. Around the tents, more than two tithes of space, lay, sat, stood bloody people in various clothes. Around the wounded, with gloomy and attentive faces, there were crowds of soldiers, bearers, who were in vain driven away from this place by the officers in charge of the order. Not listening to the officers, the soldiers stood, leaning on a stretcher, and intently, as if trying to understand the difficult meaning of the spectacle, looked at what was happening in front of them. From the tents one could hear loud, angry screams, then plaintive groans. Occasionally, paramedics ran out of there to fetch water and pointed out those that had to be brought in. The wounded, waiting for their turn at the tent, wheezed, moaned, cried, shouted, swore, asked for vodka. Some were delusional. Prince Andrey, as a regimental commander, walking through the unbound wounded, was carried closer to one of the tents and stopped, awaiting orders. Prince Andrew opened his eyes and for a long time could not understand what was happening around him. The meadow, wormwood, arable land, the black spinning ball and his passionate outburst of love for life were recalled to him. Two steps away from him, speaking loudly and drawing general attention to himself, stood, leaning on a branch and with his head tied, a tall, handsome, black-haired non-commissioned officer. He was wounded in the head and leg by bullets. Around him, eagerly listening to his speech, a crowd of wounded and porters gathered.
- We otteda as we blasted, so we abandoned everything, the king himself was taken away! - shining black hot eyes and looking around him, shouted the soldier. - Come just that very time Leserva, his b, you my brother, the title is not left, therefore I tell you correctly ...
Prince Andrew, like everyone around the narrator, gazed at him with a brilliant gaze and felt a comforting feeling. But isn't it all the same now, he thought. - And what will be there and what was it here? Why was I so sorry to part with my life? There was something in this life that I did not understand and do not understand. "
One of the doctors, in a bloody apron and with bloody small hands, in one of which he held a cigar between his little finger and thumb (so as not to stain her), left the tent. This doctor raised his head and began to look around, but higher than the wounded. He obviously wanted to rest a little. Moving his head to the right and to the left for a while, he sighed and lowered his eyes.
“Well, now,” he said to the words of the paramedic, who pointed out to him Prince Andrey, and ordered him to be carried to the tent.
A murmur arose in the crowd of awaiting wounded.
- It can be seen, and in the next world to live alone, - said one.
Prince Andrew was brought in and put on a table that had just been cleaned up, from which a paramedic was rinsing something. Prince Andrew could not make out separately what was in the tent. Complaining moans with different sides, the excruciating pain of the hip, abdomen and back entertained him. Everything that he saw around him merged for him into one general impression of a naked, bloody human body, which seemed to fill the entire low tent, as a few weeks ago, on this hot, August day, the same body filled a dirty pond along the Smolensk road ... Yes, it was that very body, that very chair a canon [meat for cannons], the sight of which even then, as if predicting the present, aroused horror in him.
There were three tables in the tent. Two were occupied, on the third they put Prince Andrew. For some time he was left alone, and he involuntarily saw what was being done on the other two tables. On the near table sat a Tatar, probably a Cossack, in a uniform thrown beside him. Four soldiers were holding him. A doctor with glasses was cutting something in his brown, muscular back.
- Wow, wow, wow! .. - as if the Tatar grunt, and suddenly, raising up his high-cheekbone black snub-nosed face, bared white teeth, he began to torn, twitch and squeal with a piercing ringing, drawn-out screech. On another table, around which a lot of people crowded, on his back lay a large, plump man with his head thrown back (curly hair, their color and the shape of the head seemed strangely familiar to Prince Andrey). Several paramedics piled on the man's chest and held him. The white large, full leg jerked rapidly and often without ceasing with feverish tremors. This man was sobbing convulsively and choking. Two doctors in silence - one was pale and trembling - were doing something over the other, the red leg of this man. Having dealt with the Tatar, over whom they had thrown an overcoat, the doctor in glasses, wiping his hands, went up to Prince Andrey. He looked into the face of Prince Andrey and hastily turned away.
Debit and credit - let's deal with these trmins.
Many have nothing to do with accounting and economics, but they use basic concepts and terms in their vocabulary every day. accounting... But quite often this terminology is used in various meanings that are far from the truth, and sometimes even distort its essence.
We consider the concepts of credit and debit - how they are similar and how they differ.
Every owner bank card necessarily comes across the definitions of credit and debit. Therefore, professionals advise to seriously understand these terms.
In simple terms, in accounting, debit means replenishment of the organization's account, i.e. receipt of funds on her account.
Translated from Latin, it is interpreted as "he should."
For a more accessible explanation, as an example, you can analyze family budget some family. The head of the family carries out activities, works, bringing income to the house, which is calculated by the hostess (accountant). This monetary income of the family is the same debit. Thus, it shows how much material wealth has come to the account of the family. The essence of the very understanding of the term "debit" helps to understand the meaning of the accounting transactions themselves.
The very understanding of the word "credit" for many of us is reduced to such a concept as obtaining a loan from banking organization, and translated from Latin it means "I must". And if we consider the definition of "credit" in the accounting sense, then it has something different meaning.
If, again, take as an example, it turns out that a loan is the amount that we withdraw from the family budget.
In accounting reports, under the value of credit denote the expense of finance from the balance sheet of the organization.
As for the organization, its activities should be clearly recorded in the accounting documents. This especially applies to the fixation of receipts of expenditures of funds and material values... This article includes such operations as the purchase or lease of fixed assets, settlements with different suppliers and contractors, write-off of balances, etc.
Not so simple
The opinion will be erroneous if we think that credit is always an expense, and debit is always income.
V accounting practice there is a double entry that displays the movement of funds in two accounts at once.
There are 99 accounts in total, which are subdivided into passive and active. Each unit has its own semantic meaning for debit and credit, but, in general, these values really reflect the movement of the organization's material resources.
Accounts are divided into two types - active and passive.
Active ones are intended for accounting of fixed assets, display data on the profit of funds, availability and write-off. There are such types of active accounts as: for accounting for monetary, property and other assets. The debit of the active account shows the profit of the cash desk, materials, accounts receivable before the enterprise. The loan records the consumption of assets, a decrease in material resources.
The debit card is intended for saving funds and the receipt to this account will reflect the increase in the amount own funds. Credit card will display the amount not of personal funds, but of borrowed funds, i.e. those that need to be returned, an increase in this amount will mean an increase in personal expenses.
The task of passive accounts is to keep track of sources for the organization's funds, as well as obligations, debts to employees and other organizations.
To display double entries for accounting accounts, there are tables in which the value for debit is fixed in the left column, and for credit - in the right.
In the column for debit, expenses are recorded, which include a decrease in capital, payment wages paying taxes. In the column for the loan, the income is recorded: the amount of profit, the receipt of funds, the repayment of debt.
Debit - income, credit - expense
The whole thing is built on the terms of debit and credit. financial system... Both debit and credit denote the sum of monetary and material values, however, their meanings are generally opposite to each other.
It will be easy for an ordinary person, far from accounting, to understand how they differ in the example of bank accounts.
A debit account is an account that is intended to save personal funds and the receipt on this account will reflect an increase in the amount of own funds. The opposite will be a credit account, which will display the amount not of personal funds, but of borrowed funds, i.e. those that need to be returned, an increase in this amount will mean an increase in personal expenses.
If you compare debit and credit accounts, then in any case, the debit will be reflected in the left column of the balance sheet, and the credit in the right. In an active account, the debit records the growth, and the credit records the company's expense; in a passive account, debit shows a decrease in the amount owed, and credit shows an increase. The balance asset displays the balances on debit accounts, in the liability - credit balances.
Summing up, we can say that debit is the funds that the company owns, and credit is the expenses and debts of the organization, those funds through which the organization owns the assets.
The terms debit and credit must be clearly distinguished in order to avoid various kinds of financial troubles, to distinguish debit card from a credit card, understand and analyze information on your own bank accounts.
Credit is public relations established between credit institution and the borrower about the transfer of funds from the lender to the borrower in the form of a loan under certain conditions. The concluded agreement prescribes such provisions as the size of the transferred funds, the term for the loan, the creditor's remuneration. For some people, credit is a vital necessity, without which they cannot imagine a full life, but for others credit is something like a debt hole that they try to bypass everyone possible ways... So, in this article, let's talk in this article on such an interesting topic and reveal all sides of the concept of credit.
The concept of credit in the economy
Credit relationships can take many forms, for example:
- Commercial
- Leasing
- Factoring
- Bank
Credit relations arise when, at a certain stage of the production cycle, the released value of one economic entity does not enter into new production relations. In this case, the resulting value can be transferred to the use of another economic entity, which additional cash enough are necessary and he is ready to give more after a while.
Functions
Credit performs several significant functions in the economy:
- The redistributive function consists in the distribution of the value released at some point from the lender to the borrower on the basis of its repayment. This function finds its expression both at the level of individual enterprises and industries, and at the level of the national (individual state) and world economies.
- The creation of credit instruments of circulation, as a function of credit, implies the presence of a banking system and, along with it, the spread of non-cash settlements and mutual obligations, which led to the emergence of means of circulation and payment.
- Reproductive function - manifests itself in two ways, consists in the following points: on the one hand, receiving credit funds stimulates the development of entrepreneurial activity and the provision of production, and on the other hand, it negatively affects the cost, the final price and sometimes the quality of the goods.
- The stimulating function of the loan means that the loan is able to stimulate the development of the enterprise if it does not have the necessary amount of funds. Plus, paying interest on the loan will require an increase in production efficiency.
Forms
The value transferred from the lender to the borrower can be presented in different forms: monetary, commodity or mixed.
The role of credit can hardly be overestimated. Thanks to this form of economic relations, the company can receive a significant amount of working capital at the moment when they are urgently needed due to the unstable economic situation. Thanks to loans, it is possible to ensure a stable increase in fixed assets, which will undoubtedly increase the potential of the enterprise and accelerate production.
To the same extent, credit policy affects the liquidity of the banking system.
Views
Initially, it is worth making a division into bank and commercial (transferred from one enterprise to another) loans. The most common types of loans provided by banks are:
- Consumer loan is a cash loan provided individuals and aimed at the purchase of goods (household appliances, furniture, tools, etc.). It is usually characterized by a high interest rate and a small amount loan.
- Car loan - a loan provided to individuals and legal entities for the purchase of automotive equipment. Compared to the previous type of loan, the loan for the purchase of a car is larger, and the interest that should be paid to the lender is slightly lower. Moreover, the lowest interest is provided for the purchase of domestically produced cars. In this case, a car can act as a pledge.
- Mortgage is the longest and most significant loan provided to individuals and legal entities for the purchase of real estate. As a rule, it features more low interest rates and longer credit terms. A mortgage loan is issued against the security of the purchased apartment.
- Loan for education - differs in low interest rates, availability of subsidies. Aimed at receiving paid education by the debtor (college, university, etc.).
- Small business money is sometimes especially needed. These are funds provided to organizations and private entrepreneurs with the purpose of stimulating their activities, paying salaries to employees, purchasing equipment, etc. To get a loan individual entrepreneur, you need to collect documents that are excellent than for a regular loan.
- Overdraft - funds debited from the client's current account if he does not have enough own funds to carry out the operation. That is, the automatic provision of funds missing to complete the operation. Such debt is repaid by depositing funds to the current account.
All of these relationships can be divided into target and non-target. The target includes, for example, a loan for an education or the purchase of real estate - such relationships have special conditions(both in terms of duration and rates) and require reporting to the creditor. Inappropriate loans include loans for urgent needs, consumer loans - including a loan on trust - without certificates and guarantors, often with bad credit history - upon presentation of only one passport of a citizen of the Russian Federation (but as a rule, for a not very significant amount, it is usually issued cash).
Another criterion for division may be the provision of guarantees for the return of funds by the debtor. The rates on secured (real estate, car, etc.) loans are lower than those of unsecured (in the latter case, the rate can be up to 25% per annum).
Relending
It's no secret that different banks issue loans on different terms. Over-lending is called obtaining a loan for more than favorable terms for full or partial payment of the loan taken earlier. Sberbank, for example, has mortgage lending programs.
The meaning of the term in accounting
In contrast debit, the loan means the right side accounting documents, in which the funds withdrawn from the accounts of the enterprise, as well as the debts and obligations of the organization are recorded. Shows a decrease in funds in active records and an increase in passive ones (there is a separate article about assets and liabilities in accounting). In this case, the stress is on the first syllable.
From the author
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