Forms of granting credit to the borrower. Essence of credit

The procedure for issuing a loan is one of the main conditions of the loan agreement. In addition, loans are classified with their help. The following issuance methods are available:

providing funds immediately, in one amount;
opening a revolving or non-revolving line of credit;
loans to cover the overdraft (considering).

The debt on the loan is reflected in active accounts. When issuing a loan, we can talk about the turnover of the debit of the account, when repaying it, about the turnover of the loan. At the same time, the total balance is always debit and reflects the amount of debt.

The methods and procedure for providing various types of loans depend both on the lending institution that issues funds, and on the loan program and the client.

Bank loan forms

Consider only a bank loan, since there are also commercial loans, government loans, international loans, civil loans, and so on.

In the case of a bank loan, it is only about capital. Only organizations licensed by the Central Bank of Russia to carry out lending activities can issue it on credit. However, the scope of such a loan is much wider than, for example, a commercial loan.

Features of providing a loan by banks:

the organization manages not so much its own funds as attracted capital;
only free capital that is not in circulation is issued;
money is lent as capital.

At the same time, when issuing funds, a credit institution charges a fee for using its services. It is expressed as a percentage of the loan that the client pays.

When issuing a loan, the bank can do this in various ways:

pay out in cash, to a bank card (settlement account) or by paying the client's payment documents;
by opening a credit line, which means concluding an agreement, according to which the client will be able to receive funds within the specified limits within a certain period of time, subject to all necessary limits;
lending in the form of "overdraft" - lending to the client's current account if there are not enough funds on it; this is a special form of loan when the bank allows the client to pay for the purchase, even if there are not enough funds in his account. At the same time, the maturity of the loan taken is set, and the amount of the overdraft will be different depending on the client.

Depending on what the classification is based on, other forms of loans can be distinguished. For example:

financial credit - used for transactions with any financial assets: securities, currency and other instruments; it satisfies the demand for speculative capital;
direct form - this wording means the direct transfer of funds for use by the client without the involvement of intermediaries;
indirect - money is taken to lend to other borrowers;
an explicit form is a loan with a specified purpose;
the main form is a cash loan (it can also be a commodity loan, but then it is not issued by a bank);
developed and undeveloped form - bank loans belong to the first type, while pawn loans belong to the second.

Bank loans can also be subdivided depending on the period of fulfillment of obligations (loan repayment) by the borrower:

on-call - in this case, after notifying the creditor, the debt must be repaid within a fixed period, currently it is used extremely rarely;
short-term loans make it possible to make up for a temporary lack of funds; they are often used in trade in the service sector and interbank lending; they are usually issued for a period of not more than six months;
medium-term loans are issued for a period of one to three years;
long-term loans are provided for more than a year, three years; funds are used to purchase large property, a car, housing, etc., however, banks try to avoid such lending due to high risks.

Loans may differ depending on the method of repayment. So some loans are repaid by the borrower one-time, that is, interest differentiation is not required. Other loans are being repaid gradually. Then anti-inflationary measures are prescribed in the banking agreement to protect the state of the creditor.

Credit - this is a system of economic relations in connection with the transfer from one owner to another for temporary use of values in any form (commodity, monetary, intangible) on the terms of repayment, urgency, payment.

Types of loans

Credit operations can be classified according to a number of criteria:

1. The loan is divided by purpose (direction) of their industry focus:

consumer; industrial; trade; agricultural; investment; budget.

By the nature of the provision, they distinguish loans with direct and indirect collateral. Direct security contains, for example, loans issued for a specific material object, for the purchase of specific types of inventory items.

Indirect security may have, for example, loans issued to cover the gap in the payment turnover.

By the degree of security: loans without security (blank), and with security.

The secured are divided into: collateral; guaranteed; insured.

By maturity: on-call (on demand, i.e. repaid at the request of the borrower or the bank) and urgent.

Urgent are divided into:

short-term (up to 1 year);

medium-term (from 6 months to 1 year);

long-term (over 1 year).

By the nature of repayment:

repaid in installments (parts, shares); - redeemable at a time.

farm credit

loans to intermediaries of the stock exchange are issued against the security of securities and are used for exchange transactions.

agricultural loans

End-use lending comes in three forms:

secured by residential buildings;

for the purchase of consumer goods with installment repayment;

loans with a one-time repayment (at the end of the term).

According to the % collection method:

interest is withheld at the time of granting a loan (issuing a consumer loan);

at the time of repayment of the loan, or even repayment throughout the entire term of the loan.

Loan Forms

In modern practice commodity form of credit is not fundamental, it is used both when selling goods by installments, and when renting property (including leasing equipment), renting things. Practice shows that the creditor, who provided the goods in installments, is in need of a loan, and mainly in cash.

Monetary form of credit- the most typical, prevailing in the modern economy. Money is a universal equivalent in the exchange of commodity values, a universal means of circulation and payment.

Mixed (commodity-money) form

It arises, for example, in the case when credit functions simultaneously in commodity and monetary forms. It can be assumed that the purchase of expensive equipment will require not only a leasing form of credit, but also its monetary form for the installation and adjustment of the acquired equipment.

Depending on who is the lender in the loan transaction , The following types of loans are distinguished: banking, economic (commercial),consumer (private, personal), state, international,

1) Commercial (household) loan provided by one operating enterprise to another in the form of the sale of goods with deferred payment .

2) Bank loan- is provided by banks and other financial institutions, legal entities (industrial, transport, trading companies), the population, the state, foreign clients in the form of cash loans.

3) Consumer credit. Consumer credit is expressed mainly in the provision of trading companies by banks for the purchase of goods and services by the population with installment payment.

Installment sales, with the provision of a consumer loan, are practiced in relation to the so-called durable goods - furniture, cars, refrigerators, televisions, etc.

Mortgage issued for the purchase or construction of housing, for the purchase of land. Mortgage loan - long-term loans issued on the security of real estate, primarily land. The pledge of real estate for the purpose of obtaining a loan is also called a mortgage. 4) State loan arises if the state, as a creditor, provides credit to various entities. 5) International credit

International credit is the movement of loan capital in the sphere of international economic relations associated with the provision of commodity and foreign exchange resources. A specific form of credit servicing foreign economic relations are leasing, factoring, forfeiting operations. Factoring- this is an operation that is carried out by a factoring company or a factoring department of a bank to provide various services to an exporter who has sold goods on a commercial loan, i.e. with deferred payment. The essence of factoring is that a factoring company (or factor firm) buys from its clients their payment claims to buyers on the terms of immediate payment of a part of the cost of invoiced deliveries and payment of the rest, minus commissions and interest on a loan within strictly defined terms, regardless of receipts from customers. Of course, the incoming payment is then credited to the account of the factor company. Factoring operations are divided into: internal, if the supplier, buyer and factor firm are located in the same country, and international, if any of the three countries is located in another state; open, if the debtor is notified of the factoring company's participation in the transaction, and closed(confidential); recourse, i.e. requesting the supplier to return the amount paid, or without the right of recourse; with the condition of crediting the supplier in the form of prepayment or payment of claims by a certain date. Forfaiting- lending to the exporter through the purchase of promissory notes or other debt claims. This form of transformation of a commercial loan into a bank one. As a result of the sale of a portfolio of debt claims, the structure of the balance sheet of the exporting company is simplified, the terms of collection of claims, accounting and administrative expenses are reduced. The seller in forfaiting is usually the exporter who has fulfilled his obligations under the contract and seeks to collect the importer's settlement documents in order to receive cash. The buyer (forfaiter) is usually a bank or a specialized company. The buyer (bank) assumes the commercial risks associated with the insolvency of importers without the right of recourse (turnover) of these documents to the exporter. Leasing– an agreement on the lease of movable and immovable property for different periods of up to 15 years. Unlike a traditional lease, the object of a leasing transaction is chosen by the lessee, and the lessor purchases the equipment at his own expense. The lease term is shorter than the physical wear and tear of the equipment. After the expiration of the leasing period, the client can continue the lease on preferential terms or buy the property at the residual value. In world practice, the lessor is usually a leasing company, not a commercial bank.

3.7 Other forms of credit.

In some cases, other forms of credit are also used, in particular:

direct and indirect;

explicit and hidden;

old and new;

main (primary) and additional;

developed and undeveloped, etc.

Direct form of credit reflects the direct issuance of a loan to its user, without mediated links.

Indirect form of credit arises when a loan is taken to lend to other entities. For example, if a trade organization receives a loan from a bank not only for the purchase and sale of goods, but also for lending to citizens for goods with installment payment. The indirect consumer of a bank loan are citizens who have issued a loan from a trade organization for the purchase of goods on credit.

Indirect lending occurred when lending to procurement organizations. In the part in which the loan was issued to the procurement organization to pay for the harvested products, there is a direct form of credit, in the same part in which this loan was used to pay advances to the deliverers for the future harvest of agricultural products by the procurement organization, an indirect form of credit arose.

Under explicit form of credit refers to a loan for predetermined purposes. Hidden form of loan arises if the loan is used for purposes not provided for by the mutual obligations of the parties.

Old form of credit- a form that appeared at the beginning of the development of credit relations. For example, the commodity loan against the mortgage of property was the oldest form used in the early stages of social development. Slave-owning society was characterized by a usurious form of credit, which later exhausted itself, however, under certain conditions, usurious payment for borrowed funds can also occur in modern life. The old form can be modernized, acquire modern features.

Towards new forms of credit include a lease loan. The object of security is not only traditional real estate, but also modern types of equipment, new goods that are a sign of modern life (cars, yachts, expensive

video equipment, computers). Modern credit serves as a new form of credit compared to its usurious form.

Main form new loan- monetary credit, while commodity credit acts as additional form which is not secondary, second-rate. Each of the forms, taking into account the various criteria for their classification, complements each other, forming a certain system that is adequate to the corresponding level of commodity-money relations.

Developed and undeveloped forms of credit characterize the degree of its development. In this sense, a pawnshop loan is called an antediluvian, “naphthalene” loan that does not correspond to the current level of relations. Despite this, this credit is applicable. However, in modern society, it is not widely developed, for example, in comparison with a bank loan.

4. TYPES OF LOAN

The type of loan is a more detailed description of its organizational and economic characteristics, used to classify loans.

A loan is classified by type depending on the characteristics of the object, the nature of transactions, and other features.

4.1 Classification of loans by terms.

By deadline credit is divided into the following types:

Short. This type of loan serves the current needs of borrowers related to the satisfaction of unforeseen expenses and the movement of working capital. Short-term loans are loans with a repayment period of less than one year.

Medium term loans serve the long-term needs of economic entities in terms of the acquisition of non-current assets and are due to the need to modernize production, implement capital expenditures to expand production. These loans are issued for a period of 6 to 12 months.

Long-term loans - These are loans with a term of more than one year. There is no established standard term as a criterion for classifying a loan as a medium-term or long-term loan. In the US, for example, medium-term loans are loans with a maturity of up to eight years, in Germany - up to six years.

On-call loan - This is a type of special term loan: demand loans that are repaid on demand. This loan is issued by banks for ultra-short-term needs and is used, as a rule, for stock market speculation. Banks use such a loan to regulate their credit policy, as well as to maintain the required level of their liquidity.

4.2 Classification of loans by security.

By availability unsecured (blank) and secured loans are distinguished, which, in turn, are divided into collateral, guaranteed and insured.

Usually security is distinguished by its nature, degree (completeness) and forms. According to the nature of the collateral, loans with direct and indirect collateral are distinguished. Direct collateral contains, for example, loans issued for a specific material object, for the purchase of specific

types of inventory items. Indirect security may have, for example, loans issued to cover the gap in the payment turnover. Although the loan is issued to cover the payment obligations of the borrower, there may not be a direct payment for inventory items that would directly oppose the loan, however, indirect material support is manifested in the form of inventories created at the expense of own monetary sources.

According to the degree of security, one can distinguish loans with full(sufficient) incomplete(insufficient) providing And without security. Full collateral is available if the amount of collateral is equal to or greater than the amount of the loan. Incomplete collateral occurs when its value is less than the amount of the loan. The loan may or may not be secured. Such a loan is called blank. Most often, it is provided if there is sufficient confidence of the bank in the borrower, the bank's confidence in the return of funds provided to the borrower for temporary use.

Credit security can be viewed not only from the position of confronting him with a certain mass of values, liquid inventories, but also with certain external guarantees. In addition to the usual pledge of inventory items, property belonging to the borrower, the loan repayment security group includes various kinds of guarantees, third-party guarantees, insurance, etc.

Pledge of property (movable and immovable) means that the creditor-mortgagee has the right to sell this property if the obligation secured by the pledge is not fulfilled. The pledge must ensure not only the repayment of the loan, but also the payment of the appropriate interest and penalties under the contract provided for in case of non-performance.

Under a surety agreement, the guarantor is obliged to the creditor of another person (borrower, debtor) to be responsible for the fulfillment by the latter of his obligation. The borrower and the guarantor are liable to the creditor as solidary debtors.

Guaranteed loans provide for any financially stable legal entity as a guarantor.

In case of insured loans, the borrowing company concludes an insurance contract with the insurance company, which provides that in case of default on the loan within the established period, the insurer pays to the bank that issued the loan compensation in the amount of 50% to 90% of the loan amount not repaid by the borrower, including interest. for using the loan.

4.3 Classification of loans by direction of use.

By direction of use loans are:

consumer;

Trading;

Agricultural;

Seasonal;

Budget;

Export;

Imported.

Let's take a closer look at these types of loans. consumer credit- a loan (loan) provided by a credit institution (bank, pawnshop) to an individual for the purchase of goods or services, a sum of money with a deferred payment, followed by reimbursement of borrowed funds and interest on them. Consumer credit includes several varieties: a loan for urgent needs, a loan for education, a loan for the purchase and repair of housing, and others.

The credit classification is determined lending objects. The object expresses that which opposes credit. Most often, a loan is used to purchase various goods (in industry - raw materials, basic and auxiliary materials, fuel, containers, etc., in trade - goods of a diverse range, from the population - durable goods). In some cases, a loan is issued for the implementation of various production costs. For example, in agriculture, a loan is mostly directed to the costs of crop production and animal husbandry, in industry - to seasonal costs (repairs, preparation for the new season of agricultural production, etc.).

4.4 Classification of loans according to the method of provision.

By way of delivery Loans are divided into:

Individual loan (a loan provided to the borrower by one bank);

A syndicated loan is a loan provided to one borrower by two or more lenders united in a syndicate.

4.5 Classification of loans according to the form of provision.

According to the form of loans there are:

Loans in non-cash form;

Crediting non-cash funds to the appropriate account of the borrower, including the restructuring of a previously issued loan and the provision of a new one;

Lending using bank bills;

In mixed form (a combination of the 2 previous options);

Loans in cash (usually to individuals).

4.6 Commodity, monetary and mixed form of credit.

Depending on the type of object distinguish commodity, cash And mixed loans.

Commodity form of credit historically preceded its monetary form. It can be assumed that credit existed before the monetary form of value, when individual goods (furs, cattle, etc.) were used in equivalent exchange. The first creditors were entities with surpluses of commodities. In later history, there are known cases of lending by landowners to peasants in the form of grain and other agricultural products before the harvest of a new crop.

In modern practice, the commodity form of credit is not fundamental. The predominant form is the monetary form of credit, but its commodity form is also used. The latter form of credit is used both when selling goods by installments, and when renting property (including leasing equipment), renting things. Practice shows that the creditor, who provided the goods in installments, is in need of a loan, and mainly in cash. It can be noted that where the commodity form of credit functions, its movement is often accompanied by the monetary form of credit.

Monetary form of credit- the most typical, prevailing in the modern economy. This is understandable, since money is a universal equivalent in the exchange of commodity values, a universal means of circulation and payment. This form of credit is actively used both by the state and by individual citizens, both within the country and in external economic turnover.

Along with the commodity and monetary forms of credit, its

mixed form. It arises, for example, in the case when credit functions simultaneously in commodity and monetary forms. It can be assumed that the purchase of expensive equipment will require not only a leasing form of credit, but also its monetary form for the installation and adjustment of the acquired equipment.

The loan is reduced not only to the stage of providing funds for temporary use, but also has other stages, including the return of the loaned value. If the loan was granted in cash, and its repayment was also made in cash, then this transaction is a monetary form of the loan. The commodity form of credit can be recognized only in those credit transactions in which the provision and return of the loaned funds occur in the form of commodity values.

If the loan was granted in the form of a commodity and returned in money, or vice versa (provided in money and returned in the form of a commodity), then it is more correct to assume that there is a mixed form of credit.

Mixed (commodity-money) form credit is often used in the economies of developing countries that pay for cash loans by periodic deliveries of their goods (mainly in the form of raw materials and agricultural products). In the domestic economy, the sale of goods in installments is accompanied by a gradual return of credit in cash.

4.7. Classification of loans according to the method of issuance.

By way of issuance loans are compensatory And payment. When a compensatory loan is issued, the loan is sent to the current account of the borrower to reimburse him for his own funds invested either in inventory or in costs. With the payment method of issuing a loan, it is used directly to pay for settlement and monetary documents presented to the borrower for payment under credited events.

4.8 Classification of loans by granting technique.

According to the technique of granting a loan allocate: one-time loans(one amount) credit lines, overdraft.

One-time loans- these are loans provided on time and in the amount stipulated in the agreement concluded by the parties.

Credit line- this is a legally executed obligation of the bank to the borrower to provide him with loans within a certain period of time within the agreed limit. A credit line is a very convenient credit instrument, as it allows you to receive funds over long periods of time. It allows you to receive several tranches (payments) at the conclusion of one contract, which is a clear advantage over a conventional loan.

Credit lines are: simple (non-renewable) and renewable (revolving).

Non-revolving credit lines allow you to receive credit funds in installments when appropriate grounds arise. Such payments must not exceed the debt limit, and the total amount of all such payments must not exceed the limit on disbursements. Such credit lines are usually opened by enterprises that are characterized by a seasonal production process.

The essence of a revolving line of credit is the opening by the bank to the client of a credit limit within the amount and term clearly established by the loan agreement. At the same time, the borrower has the right to use credit funds within the general limit at his discretion, but subject to full repayment within the period specified in the contract. Revolving credit lines allow you to restore the debt limit, subject to the repayment by the borrower of previously received payments (tranches). The borrower, having repaid part of the loan, can expect to receive a new loan within the established limit and the term of the agreement. The tranches by which the issuance of credit funds is carried out are characterized, as a rule, by intermediate repayment periods. The borrower can choose the most convenient term for the credit line, as well as set intermediate repayment terms.

Overdraft- this is a short-term loan, which is provided by debiting funds from the client's account, in excess of the balance on the account. Overdraft is one of the most promising forms of short-term lending for temporarily insolvent clients. Its purpose is to eliminate payment gaps that arise in the course of the financial and economic activities of the borrower. During an overdraft, a debit balance is formed on the client's account, which may arise as a result of the bank making payments on the client's account in an amount exceeding the balance on the account during the transaction day. A loan in the form of an overdraft allows the borrower to solve the problem of timely settlements, when expenses temporarily exceed the receipt of money to the account, is provided to cover the client’s temporary needs for funds and is used to replenish working capital (acquisition and creation of inventory items related to seasonality, payment of wages, payments to the budget, other production costs).

As funds are received on the client's account, the existing debt on the loan, as well as the amount of interest for using the loan, are repaid.

An overdraft may be permitted, i.e. previously agreed with the bank and not authorized, when the client issues a check or payment document without the permission of the bank. Overdraft interest is calculated daily on the outstanding balance, and the client pays only for the amounts actually used by him.

4.9 Classification of loans by repayment method.

By payment method distinguish installment loans(parts, shares) and lump sum loans, on a specific date. The traditional form of repayment of short-term loans are loans repaid by a lump sum from the borrower. This method of repayment is optimal, since it does not require the use of a differentiated interest mechanism.

Specific repayment conditions for loans repaid in installments over the entire term are determined by the loan agreement. This method is always used for long-term loans.

4.10 Classification of loans by types of interest rates.

By types of interest rates loans are divided into:

Loans with a fixed interest rate, which is set for the entire crediting period and is not subject to revision. In this case, the borrower assumes the obligation to pay interest at a constant agreed rate for using the loan, regardless of changes in the interest rate market. Fixed interest rates apply for short-term loans.

floating interest rates. These are rates that are constantly changing depending on the situation in the credit and financial markets.

Stepped These are periodically revised interest rates. These rates are used during periods of high inflation.

4.11 Classification of loans depending on the payment for its use.

Credit can be classified by type and dependingfrom paying for its use. Here allocate paid And demon paid, Expensive And cheap loans. This division is based on the interest rate set for the use of the loan.

In the modern economy, credit functions as capital. This means that the creditor transfers the loaned value not as a sum of money, but as a self-increasing value, which is returned to him incrementally in the form of loan interest. The borrower, on the other hand, must use the funds received in such a way that with their help it would be possible not only to ensure the continuity of production, but also to create a new value sufficient to pay off the creditor - to return to him the originally advanced amount and pay the loan interest. That is why the loan as a value category is paid.

However, in both ancient and modern history, there is also free credit in a very limited amount. Most often in the modern economy, it is used for lending to insiders (bank employees), for personal (friendly) forms of credit, etc.

With a commodity loan (in the form of bills of exchange), the deferred payment is also not accompanied by the collection of interest. At the same time, although the payment for the loan does not manifest itself directly here, however, indirectly, the interest is included in the price of the product for which the payment was deferred.

The concept of an expensive loan is associated with the collection of an interest rate that is higher than its market level. As a rule, such a rate is set for loans that have an increased risk of loan default (due to the low creditworthiness of the borrower, questionable collateral, etc.). Other loans (with a higher interest rate) are also used as a kind of sanction for late repayment

loans, as well as violations that are contrary to the loan agreement with the client.

Most often, the lender differentiates the amount of payment depending on the term of the loan, the quality of the collateral, and the solvency of the borrower. The payment varies with the economic cycle - recovery, depression or economic crisis.

Expensive and cheap loans are relative concepts. For example, for Western practice, the interest rates of Russian banks in the conditions of the economic crisis and inflation in the mid-1990s may seem cosmic from the standpoint of their size. However, taking into account the monthly and annual inflation rates, they will no longer be the same, since the depreciation of money in 1996-1997. reached from 1 to 2% monthly.

In world banking practice, other criteria for classifying loans are also used. In particular, loans can be divided into loans issued in national and foreign currencies, to legal entities and individuals, etc.

5. CONCLUSION

Credit plays a specific role in the economy: it not only ensures the continuity of production, but also accelerates it. Credit helps to save distribution costs. This is achieved by reducing the cost of manufacturing, issuing, recording and storing banknotes, accelerating funds, and reducing reserve funds. The role of credit in different phases of the economic cycle is not the same. In the context of economic recovery, sufficient economic stability, credit acts as a growth factor. By redistributing huge cash and commodity masses, credit feeds enterprises with additional resources. However, in conditions of overproduction of goods, its negative impact can be manifested. The new means of payment entering into circulation by means of credit increase the already surplus mass of money necessary for circulation.

Regardless of its social side, a loan performs certain functions, such as regulating the volume of total cash flow, redistributing funds on the terms of their subsequent return, and accumulating temporarily free cash.

A significant factor hindering the lending activity of Russian banks is the high risks of lending to Russian enterprises. An inefficient system of taxation of production and financial activities is the cause of high institutional elements of risk. A significant obstacle to the development of lending is the lack of real responsibility of borrowers for unprofitable performance and repayment of loans; shortcomings in the investment and monetary policy pursued by government agencies; mutual irresponsibility of the subjects of credit relations in terms of compliance with the principles and conditions for granting loans; lack of conditions for economic incentives for banks to invest loans in the sphere of material production; developed system of insurance of bank deposits; insufficient liquidity of the collateral provided.

A special place is currently occupied by commercial credit, leasing, bonded loans, in which several persons act as lenders.

The issue of securities has become a priority direction for financing the economy. Large banks practice the issuance of personal loans, which differ in that they are not tied to a trade transaction, and the system of lending to the population itself is very flexible. An important feature of the modern period is the growing internationalization of the credit systems of developed countries.

6. REFERENCES

Federal Law "On Banks and Banking Activities" dated 2.12.

1990 No. 395-1 (as amended on December 23, 2004 No. 181-FZ).

"Money. Credit. Banks”, edited by O.I. Lavrushina, -M.: Finance and statistics; 2004, 464 p.

Banking system of Russia. Banker's Handbook; -M.: DeKa book 1; 1995, 768 p.

"Finance. Money turnover. Credit”, edited by L.A. Drobozina, - M.: Unity; 1997, 497 p.

View loan Not...

Forms of credit are components that determine the key properties of credit relations, which are interconnected and designed for a specific type of credit relations.
Depending on the loaned value, the following forms of credit are distinguished: commodity, cash and mixed.
The commodity form of credit precedes the monetary form of credit. In this form of credit, goods are loaned out. At the same time, the goods that are the object of the loan ensure its return. Goods are used in economic circulation, and loan repayment most often occurs in cash. Goods become the property of the borrower only after repayment of the loan and payment of interest.
Monetary form of credit - the classic form of credit, it means that loans are provided temporarily free cash. This form of credit largely depends on the situation in the economy, inflation, unemployment, etc. It is used by the state, legal entities and individuals both within the country and in foreign economic turnover.
Mixed (commodity-money) form of credit. This is the case when credit is given in the form of a commodity and returned in money, and vice versa. This form of credit is typical for developing countries.
Depending on the status of the lender and the borrower, the following forms of credit are distinguished (Fig. 14.1).
In modern market conditions of management, the main form of credit is a bank loan provided by a company.
I 186

Rice. 14.1. Basic forms of credit
commercial banks of various types and types. It is presented exclusively by financial institutions licensed to carry out such operations by the central bank. Legal entities act as a borrower, the instrument of credit relations is a loan agreement. The bank receives income from this form of credit in the form of loan or bank interest.
The banking form of the loan has the following features:

the bank, as a rule, operates not so much with its own capital as with attracted resources;
the bank lends idle capital;
the bank lends not just money, but money as capital.

The commercial form is a credit granted by enterprises to each other when selling goods in the form of a deferral of payment of money for the goods sold. The instrument of the loan is a bill. A commercial loan is inherently different from a bank loan.
First, the object of commercial credit is commodity capital, while the object of bank credit is money-lending capital. Commercial credit is provided by industrial and commercial enterprises to each other in the sale of goods and serves this sale. Here, loan capital is still merged with industrial (or commercial) capital: entrepreneurs lend capital at one of the stages of its circulation, capital in the form of commodities. With a bank loan, loan capital is separated from industrial and commercial capital.
Secondly, a commercial loan differs from a bank loan in terms of subjects, i.e. participants in credit transactions. With commercial
187 I
In a loan, both the lender and the borrower act as entrepreneurs. With a bank loan, only one of the participants in the credit transaction (the borrower) acts as an entrepreneur, the other participant (creditor) acts only as the owner of money capital, since the capital he lends does not function in his enterprise.
Thirdly, the dynamics of commercial and bank loans is not the same. With regard to commercial credit, its movement is parallel to the movement of industrial capital: with the growth of industrial production and trade, both the supply of commercial credit and the demand for it increase. The situation is different with a bank loan. An increase in the supply of loan capital transferred through bank credit does not always reflect an increase in production. Thus, during periods of depression, the supply of loan capital increases significantly, not because the scale of production expands, but, on the contrary, because production has been greatly reduced as a result of the crisis and cannot absorb most of the capital that was previously occupied in it. In turn, the growth in demand for loan capital does not always reflect the expansion of production (during crises, there is a large demand for loan capital, although the size of production is reduced).
In modern conditions, in practice, there are mainly three types of commercial loans:

a loan with a fixed repayment period;
a loan with a return only after the actual sale by the borrower of the goods delivered in installments;
crediting on an open account, when the delivery of the next batch of goods on the terms of a commercial loan is carried out until the debt on the previous delivery is paid off.

The consumer form is used to finance individuals: the lender is specialized credit organizations, any legal entities that sell goods or services, the borrower is the population. The main distinguishing feature of consumer credit is the targeted form of lending to individuals. In monetary form, it is provided as a bank loan to an individual to purchase real estate, pay for expensive treatment, etc., in commodity form - in the form of goods for retail trade with installment payment.
International form - a set of credit relations in which the borrower or lender is usually the state
I 188 Other entities, such as banks, enterprises, and the population, can also enter into such credit relations. A distinctive feature of this form of credit is that one of the participants belongs to another country.
The civil (personal) form is based on participation in a credit transaction as a creditor of individual citizens (individuals). The civil form of credit can be both monetary and commodity in nature, used by any participants in credit relations. The element of trust here takes on heightened importance. The term of such a loan is not rigid, more often it is conditional.
A state loan is a loan in which the state participates in the person of executive authorities of any level. The state, represented by the central bank, can provide loans to regions or individual sectors of the national economy. A loan can be provided both on an auction basis and direct funds. The state may act as a borrower in case of placement of government loans or government securities.
A corporate (private) loan is provided by an exporter to a foreign importer in the form of a deferred payment (from two to seven years) for goods. It is issued by promissory note or open account. With a bill of exchange, the exporter issues a bill of exchange (draft) to the importer, who accepts it upon receipt of commercial documents. An open account loan is based on an agreement between the exporter and the importer to record on the account of the buyer his debt on imported goods and his obligation to repay the loan within a certain period (in the middle or end of the month). Such a loan is used for regular deliveries and trust relationships between counterparties.
Company loans also include an advance payment by the importer. A buyer's advance (prepayment) is not only a form of lending to a foreign exporter, but also a guarantee that the importer will accept the ordered goods (for example, an icebreaker, aircraft, equipment, etc.), which are difficult to sell.
In some cases, other forms of credit are also used, in particular:

direct and indirect;
explicit and hidden;
old and new;
main (primary) and additional;
developed and undeveloped, etc.

189 I
The direct form of credit reflects the direct issuance of a loan to its user, without intermediate links. An indirect form of credit occurs when a loan is taken to lend to other entities. For example, if a trade organization receives a loan from a bank not only for the purchase and sale of goods, but also for lending to citizens for goods with installment payment. Indirect consumers of a bank loan are citizens who have issued a loan from a trade organization for the purchase of goods on credit. Indirect lending occurs when lending to procurement organizations. In the part in which the loan was issued to the procurement organization to pay for the harvested products, there is a direct form of credit; in the same part in which the loan went to the payment of advances by the procurement organization to deliverers for the future harvest of agricultural products, an indirect form of credit arose.
An explicit form of credit is understood as a loan for predetermined purposes. A hidden form of credit means that the loan was used for purposes not provided for by the mutual obligations of the parties.
The old form of credit is a form that appeared at the beginning of the development of credit relations. For example, the commodity loan against the mortgage of property was the oldest form used in the early stages of social development. Slave-owning society was characterized by a usurious form of credit, which later exhausted itself, however, under certain conditions, usurious payment for borrowed funds can also occur in modern life. The old form can be modernized, acquire modern features. Leasing loans can be attributed to new forms of credit. Leasing - an agreement on the lease of movable and immovable property for a period of 3-15 years. Unlike a traditional lease, the object of a leasing transaction is chosen by the lessee, and the lessor purchases the equipment at his own expense. The lease term is shorter than the physical wear and tear of the equipment. After the expiration of the leasing period, the client can continue to lease on preferential terms or buy the property at the residual value. In world practice, the lessor is usually a leasing company, not a commercial bank.
The main form of modern credit is cash credit, while commodity credit acts as an additional one. Each of the forms, taking into account the various criteria for their classification, complements each other, forming a certain system that is adequate to the corresponding level of commodity-money relations.
I 190
Developed and undeveloped forms of credit characterize the degree of its development. In this sense, a pawnshop loan (a type of financial loan provided to commercial banks on behalf of the Bank of Russia secured by government securities) is called an antediluvian, "naphthalene" loan that does not correspond to the current level of relations. Despite this, such a loan is currently used, although not as widely as, for example, a bank loan.

Types of loans

Credit operations can be classified according to a number of criteria:

1. The loan is divided by purpose (direction) of their industry focus:

consumer; industrial; trade; agricultural; investment; budget.

Indirect security may have, for example, loans issued to cover the gap in the payment turnover.

By the degree of security: loans without security (blank), and with security.

The secured are divided into: collateral; guaranteed; insured.

By maturity: on-call (on demand, i.e. repaid at the request of the borrower or the bank) and urgent.

Urgent are divided into:

short-term (up to 1 year);

medium-term (from 6 months to 1 year);

long-term (over 1 year).

By the nature of repayment:

repaid in installments (parts, shares); - redeemable at a time.

farm credit

loans to intermediaries of the stock exchange are issued against the security of securities and are used for exchange transactions.

agricultural loans

End-use lending comes in three forms:

secured by residential buildings;

for the purchase of consumer goods with installment repayment;

loans with a one-time repayment (at the end of the term).

According to the % collection method:

interest is withheld at the time of granting a loan (issuing a consumer loan);

at the time of repayment of the loan, or even repayment throughout the entire term of the loan.

Loan Forms

Monetary form of credit- the most typical, prevailing in the modern economy. Money is a universal equivalent in the exchange of commodity values, a universal means of circulation and payment.

Mixed (commodity-money) form

Depending on who is the lender in the loan transaction , The following types of loans are distinguished: banking, economic (commercial),consumer (private, personal), state, international,

1) Commercial (household) loan provided by one operating enterprise to another in the form of the sale of goods with deferred payment .

3) Consumer credit. Consumer credit is expressed mainly in the provision of trading companies by banks for the purchase of goods and services by the population with installment payment.

Installment sales, with the provision of a consumer loan, are practiced in relation to the so-called durable goods - furniture, cars, refrigerators, televisions, etc.

Forms of granting credit to the borrower. Essence of credit

Bank loan forms

Types of loans

4. TYPES OF LOAN

6. REFERENCES

More on the topic Loan Forms:

Types of loans