Basic principles of credit. Principles of credit What is collateral for a bank loan

Loan security

This principle expresses the need to ensure the protection of the property interests of the lender in the event of a possible violation by the borrower of its obligations and finds practical expression in such forms of lending as loans secured by collateral or financial guarantees. It is especially relevant during periods of general economic instability, for example, in domestic conditions.

Targeted nature of the loan

Applies to most types of credit transactions, expressing the need for the targeted use of funds received from the lender. Finds practical expression in the relevant section of the loan agreement, which establishes the specific purpose of the loan, as well as in the process of bank control over compliance with this condition by the borrower. Violation of this obligation may become the basis for early revocation of the loan or the introduction of a penalty (increased) loan interest rate.

Most often, loans were taken out by people who were in dire need. After everyone began to grow food on the land, man was faced with the problem of crop failure. One such crop failure could leave the entire family without food for a whole year. The farmer who found himself in such a situation was forced to go to the rich man for help. Usually he asked to borrow money until the next harvest. Moreover, the interest was determined in the barter system. I borrowed a bag of grain from you, but I have to return two. Such business relationships determined the emergence of a market economy and money.

There was no guarantee that a person would be able to repay his debt and improve his situation. If it was impossible to repay the debt, he was deprived of his property, and if there was nothing to take from him, he went to his creditor into “debt slavery.” Society as a whole did not support this phenomenon. The main fighter against him was the church.

The priests argued their protest against brutal interest rates with the help of the Bible. In the Gospel of Luke it is written: “... lend, expecting nothing...” (VI, 35). Therefore, the lender should not have charged interest and generally expected the loan to be repaid. To this was added the doctrine of interest by the ancient Greek thinker Aristotle (whose philosophy the medieval church tried to combine with Christianity). According to Aristotle, interest is an unnatural form of income, since “money cannot give birth to money.”

In addition, the church tried to find rational evidence for the unnaturalness of interest. One of the arguments was, for example, the following: money lent is returned to the lender intact, interest is payment for time, and time cannot be sold, since it belongs to God. Using its power, the church is trying to put an end to interest from above. In 1179, Pope Alexander III issued a decree prohibiting “interest” under penalty of deprivation of the sacrament. In 1274, Pope Gregory X applied a more severe punishment - expulsion from the state. In 1311, Pope Clement V introduced excommunication as a punishment.

At the end of the Middle Ages, the state generally ceased its fight against any form of credit. The fight against creditors is carried out with the help of “interest rate settlement”.

In 1545 in England the maximum rate was 10% per annum. In 1624 it was reduced to 8%, and in 1652 - to 6%. Other countries followed similar practices. In 1640, the Netherlands established a maximum interest rate of no higher than 5%; in France, in 1601, a maximum interest rate of 6% was established. In 1754 in Russia the maximum percentage was 6%.

In the 18th century the prohibition of interest causes a wave of discontent among creditors, and in the 19th century. Almost everywhere control over the interest rate is lost. At the same time, the legislation of most countries retains the concept of usury (“exploitation of need, weakness of understanding, inexperience or emotional agitation of the borrower”) and criminal liability for it.

Rich people who lacked the funds to implement their grandiose plans also borrowed money. In this case, even kings could act as borrowers!

For many centuries, bank consumer credit has developed poorly. This was due to a number of reasons that existed at that time in society. Until World War II, commercial banks in developed capitalist countries almost did not provide cash loans to the population for consumer purposes.

The first qualified lenders appeared in the United States. In 1920-1930 A group of several banks, led by one of the predecessors of New York City-Corp and Bank of America, created consumer lending departments. At first, this banking group provided loans to individuals for purposes such as medical care, dental care, education, etc., but then began issuing loans for installment purchases of consumer goods.

After the war, the consumer credit sector became one of the fastest growing segments of the market for credit services of commercial banks. In other Western countries, a boom in bank lending for consumer needs began in the late 50s.

Consumer credit became most widespread in the USA: only in the 70s. There was a threefold increase in consumer loan balances. By the beginning of the 90s. it exceeded the amount of $600 billion. It is worth noting that the growth rate of consumer credit in industrialized European countries outpaced the dynamics of the US market (for example, in Germany in the 70s there was a fivefold increase in consumer credit, reaching a level of $190 billion by the beginning this decade).

However, the difference in the starting positions of countries after the Second World War predetermined the special position of the US market as the most capacious and developed. Therefore, when analyzing Western experience, we first of all turn our attention to the practice of US consumer credit.

The history of consumer credit legislation in the United States goes back decades. The Uniform Consumer Credit Code was originally adopted in seven states. The purpose of this act was to protect consumers receiving loans to finance purchases, to ensure the correct, adequate provision of lending services, and to regulate the lending industry as a whole.

The Consumer Credit Act was created by the Commissioners to Unify State Laws in 1968. The Act has been passed by nearly a quarter of the states and covers many areas found in the Federal Consumer Protection Act. The law establishes:

Fair rules for granting credit;

Upper betting limits;

Sale rules for transfer and installment sales, clauses to contracts, remedies for the creditor, court decisions to collect the balance of the debt for the sale of collateral, seizure of the debtor’s property, etc.

It also regulates credit transactions, covering most sales of real estate, goods and services by persons regularly involved in credit sales.

The American Consumer Protection Act contains a part dedicated to consumer loans. It obliges lenders to fully communicate loan terms to consumers. The law also protects consumers from abuse by loan sharks, limits the amount of rewards, and establishes the National Consumer Finance Commission, which is competent to conduct investigations in the field of consumer lending.

The Law also regulates the activities of companies that issue credit cards and provide credit histories. The law prohibits any discrimination in lending.

In Russia, loans existed during the Soviet period. You could make a purchase on credit by going to a department store with the appropriate certificate from your place of work, filling out a form, and picking up the necessary goods. Further payment took place without the direct participation of the consumer - the accounting department at work recalculated the amount needed to pay in installments from the monthly salary.

The older and middle generations well remember loans for the purchase of goods that could be obtained at large department stores. You come, bring a certificate from your place of work, fill out a short form and that’s it, the goods are yours.

The borrower (we will call this person a modern buzzword, although he did not suspect it then) did not care about what happened next. The accounting department at work regularly deducted 5-10 rubles from my salary and transferred it to the store.

Let us recall that over the 11 months of 2003, the volume of consumer loans granted increased in dollar terms by 112% compared to the beginning of the year. These growth rates in private sector lending are record highs in recent years.

Along with the opportunities that consumer loans provide, consumers also have a lot of problems associated with the lack of a specialized legislative framework. Advertising promises that the buyer overpays only 10 percent of the cost of the goods, free loans, which in reality turn out to be expensive - up to 30-100%.

In Russia now there are 2 types of consumer loans in “pure” form. You can take out a loan from a bank, or you can buy goods on credit. In essence, the contract is the same, concluded with a credit institution, only in the second case the consumer receives not money, but goods or services. The bank pays the seller or contractor for the consumer, and the consumer pays the banks back over several months or years.

Legislatively, consumer lending is regulated by the Civil Code, based on the provisions of which a loan agreement is concluded between the bank and the borrower.

Home Credit, UWC, Alfa Bank, MDM Bank and many others considered it an honor to have consumer loans in their product range. Each relied on its own advantages - speed of registration, minimum documents, favorable interest rates, etc.

Gradually, consumer lending became widespread, which affected positive results. In addition to banks, consumer lending is a very beneficial phenomenon for trade organizations. By the beginning of 2005, according to estimates from various analytical agencies, goods sold on credit accounted for about 60% of the total sales volume of large chain stores. The leaders among them were such retail chains as: "M-Video", "Eldorado", "MIR". On average, 5-10 banks are represented in the organization’s territory, which are ready to offer the market their unique conditions.

Trying to increase demand for consumer loans, banks are entering the market with new conditions. Such a concept as “promotion” appears, and accordingly banks introduce new products: “free loan”, “loan without down payment”, “10-10-10”, “interest-free loan”. However, such shares cannot appear to the detriment of the bank. This is precisely what a potential borrower does not understand when he applies to a bank for a loan. Thinking that banks really issue interest-free loans, the client tries to reassure himself that, in fact, he is buying goods in installments.

Currently, a type of consumer lending – car loans – is becoming increasingly popular. This banking segment is characterized by lower interest rates and lower risks, which, along with the speed of processing and the speed of issuing a loan, makes it attractive for the bank, the borrower, and the car dealership.

Insuring risks, banks introduce additional conditions - insurance of collateral (vehicles). This, in turn, places additional costs on borrowers who overpay for insurance by an average of 10-20% of the cost of the car.

Thus, car lending also affects the insurance market, bringing it additional sales volumes and, accordingly, profits. Banks and car dealerships, which receive agent commissions from insurance companies, also do not lose money.

Unlike classic consumer lending, where loans are mainly issued in rubles, a distinctive feature of car lending is foreign currency loans. And accordingly, interest rates (taking into account various bank commissions) are 30-40% lower.

Additional profits that the bank receives as part of the implementation of consumer lending programs are commissions from trade organizations where loans are issued. This is the so-called discount from a trade organization.

Another important and promising area for banks is the active promotion of retail lending not only in the capital region, but throughout Russia. Naturally, the development of banking business in the regions lags behind by about 2-3 years from the capital, but given the huge demand, this direction seems to be very profitable and interesting.

In the early 2000s, Russian Standard and Home Credit gradually opened representative offices and branches in the largest cities of Russia. In such as: St. Petersburg, Yekaterinburg, Samara, Rostov-on-Don, Volgograd, Kazan, Ufa and many others.

In the regions, the largest Moscow banks have great competition from local banks, which are also ready to offer clients favorable conditions and a cheaper loan product. Thus, Moscow banks, in addition to their internal competition, also receive competition in the regions from local banks.

Today, consumer lending has covered the entire territory of our country. This suggests that the retail banking segment is not developing locally, but covers the entire country.

Analyzing the development of consumer lending in Russia, one can highlight positive and negative features.

The positive ones include:

Receipt of consistently high profits by banks;

Increasing sales volumes by trade organizations and car dealerships;

Increase in purchasing power;

Increasing the client base for both banks and trade organizations;

To the negative:

Increased risks of non-refundability of funds for banks;

Significant overpayments for goods purchased by the client;

However, the comprehensive implementation of consumer lending programs brings more positive trends for the country's economy than negative ones. However, maintaining consumer lending in the forms that it currently takes is very problematic. The next stage (which has already begun to be implemented) will be non-targeted lending using plastic cards.

Now forms of such lending exist in Russia, but they are not very popular. This is primarily due to the underdeveloped infrastructure for accepting plastic cards for payment (a small number of POS terminals, imprinters, ATMs). And secondly, to obtain such loans, banks require additional confirmation of solvency from borrowers.

However, in the near future, following global trends in the development of consumer lending, in our country the retail banking sector will be transformed into three main areas:

Lending on plastic cards;

Car loans;

Mortgage lending.

To develop these programs, banks need to:

Decrease in interest rates as a factor in increasing demand;

Insurance of financial risks against possible losses;

Creation of credit bureaus throughout Russia;

Development of banking infrastructure technologies.

Based on the method of collateral, credit transactions are divided into 4 groups:

1) transactions based on personal trust;

2) transactions secured by written obligations;

3) transactions secured by a guarantee and surety;

4) transactions secured by collateral.

First type of transactions based on personal trust in the borrower, i.e. on his verbal promise to return the borrowed amount. This kind of transaction is extremely rare and takes place between close people connected by family or friendship.

Second type of transactions associated with written obligations. Its most common type is a bill of exchange.

Third type of transactions refer to transactions with so-called unreal (non-material) collateral. They are associated with guarantees and guarantees.

Unreal collateral is collateral with negotiable and non-negotiable obligations.

Security of negotiable obligations includes aval and acceptance.

Aval is a guarantee of a third party for the performance of an obligation by the principal debtor in the event of non-fulfillment.

Acceptance is the consent of a third party to fulfill an obligation for the principal debtor.

Aval and acceptance are placed on order securities (in the Russian Federation - bills of exchange, checks, bills of lading, double warehouse receipts).

In the case of non-negotiable obligations, for example, in a loan agreement, the security takes the form of a surety or guarantee.

Surety is an obligation of a third party to the lender to be responsible for the borrower’s fulfillment of debt repayment obligations. If the borrower cannot repay the loan, the guarantor must do so.

Guarantee- this is a written obligation of a credit or other organization to pay a sum of money to the creditor upon his request in accordance with the conditions (conditions - amount, term, list of documents, etc.). This is an independent obligation of the guarantor, which does not depend on the fulfillment of the obligation by the borrower. According to Russian law, guarantees are issued by banks.

The fourth type The security for the transaction is a pledge.

The most common way to ensure loan repayment is pledge(Articles 334 - 358 of the Civil Code of the Russian Federation) - a method of securing an obligation in which the creditor (pledgee) has the right, in the event of failure by the debtor to fulfill this obligation, to receive satisfaction from the pledged property preferentially before other creditors. The pledgor can be either the debtor himself or a third party, either the owner of the thing or a person who has the right of economic management over it. A pledge cannot exist without a primary obligation. It arises by virtue of an agreement or law upon the occurrence of the circumstances specified therein, if the law stipulates what property and to ensure the fulfillment of what obligation is recognized as being pledged.

The pledge agreement is concluded only in writing, simple or notarized. When concluding a pledge agreement, it is very important to comply with its form and, if necessary, the registration procedure (Article 339 of the Civil Code of the Russian Federation). Their violation entails the invalidity of the contract.

A real estate pledge agreement requires additional state registration (clause 1 of Article 131 of the Civil Code of the Russian Federation) with the relevant authorities.

Subject of the pledge(Article 336 of the Civil Code of the Russian Federation) there can be any property, including things and property rights (claims), with the exception of property withdrawn from circulation, claims inextricably linked with the person of the creditor, and other rights, the assignment of which to another person is prohibited by law.

The classification of collateral, in our opinion, can be presented as follows (see Fig. 1).

Before concluding a contract, a collateral verification report is drawn up with an on-site visit. A representative of the lending department checks the actual availability and documentary (accounting) data of the collateral. In this case, an act is drawn up, signed by a representative of the bank, the manager and chief accountant of the borrower.

Naturally, the location of the pledged property depends on the subject of the pledge.

Leaving the pledged property with the mortgagor (borrower) has a certain risk for the lender and creates the need to organize control over its safety.

The pledge is terminated:

· with the termination of the obligation secured by the pledge;

· at the request of the pledgor in the event of a gross violation by the pledgee of the obligations specified in clause 1 of Article 343 of the Civil Code of the Russian Federation, creating a threat of loss or damage to the pledged property;

· in the event of the destruction of the pledged item or termination of the pledged right, if the pledgor has not restored the pledged item within a reasonable time or has not replaced it with other equivalent property;

· in the case of a sale of pledged property at public auction, as well as when the sale of the pledged property turned out to be impossible and the repeated auction was declared invalid, and the pledgee did not exercise the right to retain the pledged property within a month after the auction was declared invalid.

The essence of credit is manifested in the principles of lending. Lending principles are the fundamental conditions on which a loan is issued to a borrower.

Basic principles of the loan:

1) urgency;

2) repayment;

3) security;

4) payment;

5) differentiation;

6) targeted nature of the loan.

Loan term assumes that the borrower must repay the loan amount within a strictly defined period established by the loan agreement. Violation of the loan repayment period is the basis for the lender to apply economic sanctions to the borrower in the form of an increase in the interest charged, and with further delay, the provision of financial claims in court. Meeting the deadline for the borrower is a guarantee of receiving the loan. The period for which the loan is issued is specified in the loan agreement.

Repayment principle loan is the need for timely return of funds to the lender after completion of their use in the borrower’s household. In case of failure to repay the loan on time, penalties are imposed on the borrower. The borrower cannot dispose of the received loan as his own capital. The loan is repaid at the moment when the released funds enable the borrower to return the funds received for temporary use. The repayment process is important for both the lender and the borrower.

Loan security– necessary protection of the lender’s property interests from possible violation by the borrower of the obligations assumed in the contract. Securing a loan means that the borrower's property, valuables and real estate allow the lender to be confident that the loan will be repaid within a certain period of time. When giving a loan, the lender checks the liquidity of the property pledged as collateral.

The main types of loan security are collateral, guarantee, surety, and insurance of the borrower's liability for non-repayment of the loan.

Loan payment expresses the need for the borrower to pay for the right to use credit resources. When determining the price of a loan, lenders take into account factors such as the stability of money circulation in the country, and primarily the rate of inflation growth. The higher the inflation rate, the more expensive the loan fee should be, since the bank has an increased risk of losing its resources due to the depreciation of money. The principle of payment for a loan means that each borrower must pay the lender a certain fee for temporarily borrowing money from him. The implementation of this principle in practice is most often carried out through the mechanism of bank interest.

Differentiationloan applied by the lender to various categories of borrowers. The lender can divide borrowers based on individual interests, depending on security, use of loans, etc., applying differentiated terms of the loan agreement to each group. Differentiated lending means that lenders do not have to take a one-size-fits-all approach to clients applying for a loan. The loan should be provided only to those business entities that are able to repay it in a timely manner. Lending differentiation should be based on creditworthiness indicators. An assessment of the creditworthiness of business entities wishing to receive a loan, carried out by lenders before concluding loan agreements, gives them the opportunity to predetermine the borrowers' compliance with the principle of urgency of lending. Differentiation of lending, based on the creditworthiness of borrowers, prevents their losses from being covered by the loan and serves as a necessary condition for its normal functioning on the basis of repayment and payment.

Targeted nature of the loan used for most lending relationships. It expresses the need for targeted use of the lender’s funds. The loan agreement stipulates the specific purpose of using the loan received. With the help of such a condition, the lender not only controls compliance with the loan agreement, but also gains confidence in the repayment of the loan and interest. Violation of this obligation may be grounds for early revocation of the loan or the imposition of penalties.

Bank lending to enterprises and other organizational and legal structures for production and social needs is carried out in strict compliance with the principles of lending. The principles of lending represent the basis, the main element of the lending system, since they reflect the essence and content of the loan, as well as the requirements of objective economic laws, including in the field of credit relations.

A pledge is a way of securing obligations between the debtor (pledgor) and the creditor (pledgee). Collateral can be primary or secondary. In the first case, the collateral is transferred to the Bank as a first priority collateral. If the borrower receives another loan (while refinancing the first loan) from another bank, the second-stage collateral mechanism is triggered.

In this case, the contractual relationship between the first Bank and the second (remortgaging) Bank is concluded in writing, and the collateral is remortgaged to the second Bank. The creditor has a priority right to the collateral relative to other creditors. The relationship between the parties is specified in the agreement and regulated by the Civil Code of the Russian Federation, the Federal Law “On Mortgage”, and the Federal Law “On Mortgage”.

Collateral is a set of conditions that gives the creditor confidence that the debt will be repaid. Collateral for a loan can be collateral in the form of real estate, movable property and other highly liquid assets (securities, guarantees), as well as a surety. In addition to the main loan collateral, in a number of countries there is a need to provide additional sources of income, because the credit risk for the lender is higher.

Similarities and differences between collateral and security

Thus, “Pledge” and “Security” are two different concepts. However, in the banking system there is a general expression - “Collateral”, which implies the entire system of contractual relations and obligations between the debtor and the creditor.

Securing a loan with collateral

There are types of loans in which the obligatory condition is the provision of collateral. These include: commercial, mortgage, consumer, leasing, etc. For them, Banks necessarily require “hard” collateral. For car loans, student loans and other “easy” loans, Banks mainly accept purchased cars, inventory items, movable property, etc. as collateral. The pledgor can be either the debtor himself or a third party, with his written permission.

Documentary component

After the loan is issued, the borrower's package is formed. It contains the loan collateral, agreements, and all other necessary documents in accordance with the “Lending Procedures”. Each unit of collateral in the Bank is accounted for as one off-balance sheet liability and reflected in the corresponding accounting entry. In practice, the nominal value of 1 collateral is usually equal to 1 unit of currency and is kept until the end of the loan term. At the end of the loan term, the off-balance sheet liability is written off from the Bank's liabilities and returned to the borrower against signature.

What happens if you don’t pay the Bank?

If the mortgagor fails to fulfill the obligations specified in the agreement, the Bank delivers to the debtor a notice registered with the relevant authority about the initiation of the procedure for forced collection of the collateral to pay off the debt. If the debtor does not “react” to the Bank’s actions in pre-trial proceedings, the Bank has the right to satisfy the obligation by selling the collateral. The lawyer prepares a package of documents (correspondence between the debtor and the creditor), attaches signed agreements, calculates the full amount of the debt, and sends the case to court. If the court makes a decision in favor of the creditor, the debtor's property becomes the property of the Bank and is sold at an open auction under the hammer. If the court decides in favor of the debtor, then one can only envy this debtor, because this is a very small percentage of all court cases.

Calculation of collateral and obligations

In order to secure a loan with collateral, the loan officer first calculates the amount of the debtor’s obligations:

loan amount + accrued interest for the period according to the repayment schedule = loan obligations

Calculation example

To support the above material, let's give 2 examples:

Example 1.

You took out a loan:

5,000,000 rubles * 11% * 5 years = 7,750,000 rubles.

Congratulations, your collateral fully covers your obligations and you have an excellent chance to get a loan.

Example 2.

You receive a mortgage loan to purchase an apartment, the cost of which is 14,000,000 rubles.

The goal is to buy an apartment

In mortgage lending, the property being purchased is required as collateral for the loan. What will be the calculation of the collateral security? Let's take a closer look here. The liquidity ratio will also be 50%. Now look: If the property being purchased costs 14,000,000 rubles, then after applying the coefficient, its estimated value as collateral will be equal to 7,000,000 rubles. And the amount of your obligations to the Bank is:

14,000,000 * 10% * 10 years = 28,000,000 rubles!

There was a difference of 21,000,000 rubles. In this case, you need to provide additional collateral for the difference in your obligations. However, one of the conditions of mortgage loans is your own contribution to the purchased property. Typically it varies from 30% to 70%. I will explain this in detail to you in the next topic.

Urgency of lending- This is a natural form of ensuring loan repayment. It means that the loan must not only be repaid, but repaid within the period strictly specified in the loan agreement. For this purpose, the loan agreement elaborates in detail loan repayment and interest schedule. For example, the repayment schedule for a loan issued with the condition of repayment in 10 years at 10% per annum is as follows (Fig. 64):

Rice. 64. Loan repayment schedule for 10 years at 10% per annum

Loan security

Loan security- an additional lending principle that is always included in the loan agreement.

With the adoption of the law “On Banks and Banking Activities”, commercial banks were able to issue loans to their clients against various forms of collateral.

The most common types of loan collateral are:

material assets, registered collateral obligation;

guarantees of intermediaries of solvent legal entities and individuals (banks, etc.);

insurance policies issued by borrowers with an insurance company for the risk of loan default;

liquid securities.

Loan payment

Principle paid A loan means that the borrower of money must pay a certain one-time fee for using the loan or pay over a specified period.

Loan target orientation

Additional principle lending is his target orientation, which creates conditions for compliance with the principles of repayment and repayment of loans, as well as, to a certain extent, their urgency. This principle involves issuing a loan for a clear purpose for its use (stipulated in the loan agreement). The targeted nature of the loan allows the lender to clearly understand the borrower’s ability to repay the loan on time with interest. Lending for productive purposes is considered the most stable, when the money invested gives a real return - profit.

Loan differentiation

Principle loan differentiation means a different approach to borrowers depending on their real ability to repay the loan.

The principle of a differentiated approach to borrowers, depending on their real ability to repay the loan taken out, involves dividing borrowers into first-class And dubious. Within these groups, more detailed differentiation is usually applied using the system credit ratings. Within credit ratings, debtors are differentiated in sufficient detail, taking into account a whole set of criteria.

Solvency is the borrower's ability to repay the loan on time with interest. Depends on economic and socio-political factors.

The combined application in practice of all the principles of bank lending makes it possible to comply with both the national interests and the interests of both subjects of the credit transaction, the bank and the borrower.

Rice. 66. Types and forms of credit

Historically, the first form of credit was usurious credit, where loans were made for a very high fee. The usurious interest usually exceeded 100% and often reached 300-500% per annum. At usurious interest, mandatory material security for the loan was required.

Commercial loan- is the provision of goods by the seller to the buyer with deferred payment. Since there is no immediate payment, the loan term is a deferred payment period. Interest is, of course, charged for this loan (Fig. 67).

Bank loan- is the provision of a loan to a borrower, mainly by a credit institution (bank) on the terms of repayment, payment, for a period and for strictly specified purposes, and also most often under guarantees or collateral. Recipients of a bank loan can be both individuals and legal entities (Fig. 68).

Thus, a bank is an institution that trades in loans formed from money mobilized on deposits.

Bank profit= Loan interest - Deposit interest

As follows from the presented formula, a bank, when trading loans, in order to make a profit, must maintain the ratio:

Loan interest ≥ Deposit interest

Thus, the profitability of loans is expressed in the rate of interest, which is the ratio of the amount of interest to the amount of loan capital. The interest rate is a dynamic value and depends primarily on the relationship between demand and supply of loan capital, which, in turn, are determined by many factors, in particular:

scale of production;

the size of monetary savings, savings of all classes and strata of society;

the relationship between the size of loans provided by the state and its debt;

cyclical fluctuations in production;

its seasonal conditions;

the rate of inflation (as it increases, interest rates rise);

government regulation of interest rates;

international factors (imbalance in balances of payments, fluctuations in exchange rates, uncontrolled activity of the world market for loan capital, etc.).

A bank loan has a number of features:

participation in a credit transaction of one of the credit institutions;

wide range of participants;

monetary form of loan provision;

wide variation of loan terms;

differentiation of loan terms.

The latter gave birth new forms bank lending: leasing, factoring And forfatting. Leasing is an agreement on long-term lease of movable and immovable expensive property. Credit relations in a leasing transaction arise between the lessor, which can be a bank or financial company, and the lessee - a company that uses leased objects in its activities. Leasing is a combination of credit and rent. Leasing is always serviced by a long-term loan, which is repaid either cash payment, or compensation payment(goods produced on rented equipment).

Factoring- intermediary operation (dealing) of a credit institution to collect funds from its client’s debtors and manage its debt claims.

Consumer credit is related to bank lending end consumer (population). Its main characteristics:

borrowers are individuals;

The intended purpose of such loans is to use them to meet the final needs of the population.

State loan- acts in the form of government loans from the population, legal entities, foreign states in order to cover the state budget deficit or finance government expenses.

International loan- is the provision of loans in commercial or banking form by lenders in one country to borrowers in another country. Lenders and borrowers for international lending are states and legal entities (banks and firms).

Mortgage loan- providing a long-term loan secured by real estate (land, housing, etc.). This loan is provided for long terms, secured by real estate. Pawn loan- short-term financial loan secured by easily salable movable property.

All of the above types of loans are also divided according to the principle urgency for: short-term (from 1 day to 1 year), medium-term (from 1 year to 5 years) and long-term (over 5 years).