Well-known economists say that loans are one of the levers of economic movement. It is difficult to disagree with them, because the money supply, instead of freezing on the account or under the pillow, begins to move and create new capital.
In this article we will consider the principles and forms of credit, as well as their types that exist on the territory of the Russian Federation.
Let's start with the basics
A loan is a temporary transfer of material assets from one person to another on a contractual basis, in which a repayment period is established, as well as the size of the commission for their use.
In other words, we can say that a loan is a loan that a lender gives and takes a borrower.
The cost of a loan is the sum of all commissions and interest rates that must be paid to pay off a debt (except for the loan body).
When the first loan appeared, it is impossible to say, since, in fact, any first loan between two people can be called this financial transaction. Naturally, earlier loans were issued mainly in commodity form, since the monetary form of relations developed much later than barter.
What are they like?
So, the forms and types of loans are very different. Depending on the political and economic situation in the country, the rules of credit relations may vary from state to state. And in some situations, they may be completely absent. Below we will consider what forms and types of loans exist in Russia.
Without a financial service such as lending, many countries would have gone bankrupt or defaulted long ago. This is really a real tool that helps develop all areas of business, even entire states.
For example, against the background of the unfavorable external political situation in which Russia is located, international loans from foreign currency organizations are practically inaccessible to the state, which entails a slowdown in the pace of economic development.
So, we will begin to consider forms of loans, depending on the signs listed below.
By nature of value
Depending on what value is given on a loan, the following forms are distinguished:
- Cash.
- Commodity.
- Mixed.
Considering the main forms of credit in Russia, the first thing we will focus on cash. Such loans are a classic type of loan in the modern sense of the word. Since money in the form of currency units is a universal payment instrument that operates practically all over the world (except for settlements of wild tribes), such loans are most popular.
And due to the fact that many modern currencies are convertible, this form of lending is widespread not only among individuals or legal entities, but also when obtaining loans at the international level.
The cost of such loans is largely determined by the current situation in the economy (unemployment, inflation, devaluation, etc.)
The main forms of credit include the product option, which appeared much earlier than the money one. In modern lending, the commodity option has turned into a mixed form in the form of consumer loans, for example, on household appliances.
In this case, the product itself is a pledge, which can be confiscated in case of late payment of the next payment and the presence of a large debt to the creditor.
By type of parties
If we consider the status of the parties that conduct credit relations, we can distinguish the following forms of loans:
- civilians;
- state;
- commercial;
- banking.
Civil forms were the very first in history when one person gave someone his material value on certain conditions. Even if a friend lent you some money to pay, it can already be called unformed credit relations.
Modern science in this classification distinguishes criminal and friendly forms of loans. The first is based on amounts obtained through dishonest enrichment and given to someone on credit. If the borrower did not return the funds on time, then the collection mainly takes place in a particularly rude form.
Friendly form means taking a certain amount of money on the basis of mutual trust of the parties. Such relationships are rarely formalized by a contract or other document.
State loans
The main feature that takes the form of state credit is the participation of authorities in the formation of such relations.
If the state acts as a creditor, then often the government of the country thus tries to stimulate the growth of the economy in a particular business sector.
On the contrary, the state is trying to find financing for any budget item in the country by issuing bonds or other securities.
By borrower status
Depending on the status of the borrower, one can distinguish the following forms of state credit:
- centralized;
- decentralized.
If the Ministry of Finance issues securities, then this will be a centralized form of credit. Decentralized loans are formed on the basis of decisions of local authorities.
Commercial loans name those loans that are issued in the process of trade relations between various business entities. That is, their primary source is not specialized organizations, for example banks, but enterprises that temporarily have an unnecessary mass of money.
Such relationships are usually made out with the help of a bill that confirms the borrower's obligations to the lender. A commercial loan is issued exclusively in commodity form.
Bank loans
We pass to the last form - bank loans. Only loans in which the subject of the contract is exclusively money fall under them. They can be provided only by specialized organizations with the appropriate permission.
The price for using such a loan is expressed in the interest rate, which is indicated in the contract.
Purpose of use
Depending on the goals and objectives for which the loan is taken, the following forms of credit exist:
- Production.
- Consumer.
In those situations when the company needs to raise additional funds, it applies to the bank for a production loan. Borrowed funds can be used to replenish working capital, pay wages to employees, pay off payables, purchase fixed assets or raw materials, etc.
The consumer form indicates that the lender gives funds to a loan to an individual who can spend them on their own needs. Such loans cannot be attracted to the production process and are spent without creating new value.
Other symptoms
There are other characteristics or features by which different forms of credit are shared. So, allocate:
- direct and indirect form;
- explicit and hidden;
- primary and secondary;
- developed and undeveloped.
The direct form means the issuance of a loan without the participation of intermediaries and third parties. The indirect form defines those loans that are issued to other legal entities through the one who draws them up.
An explicit loan is called when the contract stipulates the purpose of using credit funds. And hidden loans are those loans in the contracts of which there is no such information (for example, consumer loans in cash).
Under the main form of credit means its monetary option, and under the additional - commodity.Also, these concepts can be considered by line of credit when the main part of the loan is used first, and then, if necessary, the remaining part is selected.
As you can see, the main forms of credit have a fairly detailed classification and broad structure.
Types of loans by maturity
With types of loans, things are similar, therefore, without reinventing the wheel, we will also consider them depending on the characteristics.
By maturity, the following types are distinguished:
- Oncology.
- Short-term (maturity up to 6 months).
- Medium-term (from 6 to 36 months).
- Long-term (over 36 months).
On-line forms of loans are not used in Russia, they are rarely found in the rest of the world. Their essence lies in the fact that the lender independently sets the repayment term, having previously given the borrower a corresponding notice.
Short-term loans occupy the lion's share of the credit services market, since most of all concluded transactions fall under this type.
The average term is mainly used for car loans. This option of issuing loans is less interesting for the bank, since it is difficult to predict the level of inflation and a possible recession or growth of the state economy, which affects the ratio of the ruble to the US dollar and the euro.
Long-term loans are rarely used in the Russian Federation, as there is economic instability, which can easily lead to a loss of solvency of the borrower. In such cases, the creditor will only be forced to write off debts, and it will be almost impossible to return the funds back.
The most common option is the purchase of residential real estate by individuals, as well as expensive fixed assets by enterprises.
Depending on the type of payment
Bank loan forms are divided into two types, depending on the method of repayment:
- annuity payment;
- differentiated.
The first implies that the interest on the loan is summed up with his body, and the total debt is divided by the term of the contract. Thus, it turns out that every month the borrower agrees to make the same payments (except for the last month, when the payment may differ slightly). This type of repayment is less profitable, since in any case, the borrower will have to pay the majority of the interest.
The differentiated type of repayment consists in the fact that the borrower pays a certain part of the loan body monthly, as well as the interest accrued on it. The faster the principal amount of debt is reduced, the less you will have to overpay.
Above, we have listed the main forms and types of loans that will help classify a particular transaction. Of course, there are other signs by which to distinguish various types of lending, but they are much less commonly used.
