origin of the term "credit" has several interpretations.Some experts believe that it derives from the Latin credit (which means "he believes"), the other from creditum (loan amount).In fact, a loan - it is the movement of loan capital, or borrow money in any form of commodities.The concept and practice of lending existed several thousand years ago in kind and cash.Both of these forms of loans developed in parallel, acquiring its scope and significance.
Essence credit
consider briefly the nature and function, and the principles of credit, they are in practice.Persistently and consistently the concept of the essence of the loan, which indicates the economic relations between lenders and borrowers on the return of cash value or cost in the form of commodities.
subjects of credit relations are legal entities and capable citizens: creditors - person that convey value for temporary use, and borrowers get a loan and must return it by the deadline.At the current level of the organization of commodity-subject can simultaneously serve as the lender and the borrower, such as a bank.The object of the credit transaction - it lent value in cash and presentation referred to the borrower with the lender then return.
functions loan
There are two main functions of credit in modern conditions: redistributive function replacement operations Cash Non-cash loans.With the redistributive function of money and commodity funds belonging to a single economic entity transferred to the use of another economic subject for some time on the condition of repayment, urgency and payment.
replacement function is to create credit-based payment instruments, the use of which there is the effect of saving distribution costs.The above functionality is added as a result of the specific organization of modern money turnovers with a predominance in them cashless payments made.Keeping money in banks, the customer thus comes with the latest in credit relationships and creates the possibility of lending in the form of bank records, instead of using cash.
principles loan
In the process of credit relations apply the basic principles of the loan, they include maturity and repayment, material security, targeted, payment.
• loan repayment implies the timely return of the loan after the completion of its use.
• Urgency credit determines the dates on which the loan must be repaid by the borrower, they are fixed in the loan agreement or other equivalent document.As a result of violation of the terms specified by the borrower the lender has the right to apply the economic sanctions.
• Paid loan - is the profit obtained from the use of credit and distributed between the lender and the borrower in the form of loan interest.Through this principle, the borrower repays the loan is not only produced in the bank, but also pays for the right to use it.
• secured loans - loan is granted bail or under the financial guarantee.This ensures the protection of the interests of the lender in the event of the borrower received loan commitments.
• targeted credit - provides for the use of loan funds for specific purposes as defined by the credit agreement.
In addition to these major, there are other principles of the loan.So differentiated approach provides various credit institutions to potential borrowers of different categories.
course, take and use credit to borrowers may not know the basic principles of credit and rules for operating this instrument.However, lack of information can lead to unexpected expenses and various misunderstandings.To confidently and safely use the economic good - credit, you must possess basic information.Learning the principles of credit, you can calculate in advance their own capabilities and to enter into legal relations with the Bank, without incurring huge losses and feeling confident in the future.
