A loan implies the transfer of funds by one party to the other. This method has been used in trade for a very long time. Now, loans are often resorted to in cases of urgent need for financial resources or to improve the technical base of an enterprise and increase working capital. If we talk about credit for the population, then anyone can take a loan. The most common requests from the population are: buying an apartment, training, apartment repair. And this is not the whole list of needs.
There are such lending principles:
Security
Refunds
Urgency
Target nature (focus of funds)
Differentiated
Fee
Loans are usually divided into types. Each country has its own concepts about each type, they are similar, but each country proceeds from its own credit traditions that distinguish it from others, which is associated with inflation and living standards. The division into species depends on:
- loan repayment period. Short term loan can be obtained on lines up to 1 year or less. A medium-term loan is designed for lines from 1 year to about 6 in each office; different criteria, some give loans up to 12 years. Long-term loan is issued on lines of 6 years.
- lending facility. Objects of lending may be the purchase of material resources, the purchase of raw materials, the purchase of goods, expenditures on crop and livestock production, and the purchase of fuel.
- industry focus. It will be a construction, transport, trade, industrial industry.
- loan security. Direct security for a specific product, material, property. Indirect security when the loan amount exceeds the market value of the property that the loan provides. Also, the loan may be unsecured.
- paid. Paid credit implies the payment of interest by the borrower, and a free loan implies the return of funds without paying interest.
- interbank credit. This is a simplified form of lending between banks.
- mortgage. It is a loan that is most often issued to the population. Mortgage is also that a loan that is taken on the security of real estate, the issue can take place, in the presence of housing and in its absence. Mortgage loan is the funds received for the purchase of real estate secured by the latter or the pledge of other real estate.
- consumer credit. This type of loan is provided to individuals for the purchase of a car on credit, furniture, electronics, plastic windows on credit.
