What are the loans. What are the types of loans? Shape and currency

Individuals is growing every year. Financial institutions offer their customers all the new products that are designed to meet the financial needs of borrowers. Often, even the fact of overpayment of interest does not stop an individual from obtaining a loan.

A citizen makes such a deal with a credit institution when own funds do not allow you to achieve the desired goal. For example, buy an apartment or make repairs, in case of unforeseen circumstances. Banks offer various lending programs. The client only has to choose special purpose, conditions and provide Required documents for decoration. What loans are in banks, we will analyze in this article.

The relevance of modern loans

Banks willingly issue loans to individuals, but under different credit terms. Of course, you can save up the necessary amount on your own, but this will take a very long time. Yes, and inflation can devalue the accumulated amount. Therefore, most often individuals choose the most convenient option meet financial needs - clearance credit loan.

Types of loans for individuals by terms

Loan agreement between the bank and the borrower can be concluded for a different time period. Depending on this, the following types of loans are distinguished:

1. Short-term, as a rule, the repayment period of such a loan does not exceed one year.
2. Medium-term - from one to 5 years.
3. are provided for a long time up to 30 years (for example, a mortgage loan).

Shape and currency

Considering the question of what loans are, it is worth noting that they are:

• cash;
• non-cash.

In any currency:

• rubles;
• Euro;
• dollars.

More recently, loans have been issued, either in kind or in the form of credit card. And if cash is most often issued by banks within the framework of targeted programs, then almost any citizen can receive cards with a certain limit for various needs.

Special purpose

what are loans? The largest group is the intended purpose. The most popular include:

1. Consumer - for various purposes.
2. Car loan - for the purchase of a new or used car.
3. Mortgage - for the purchase of housing.
4. Educational - for higher education vocational education or advanced training.
5. Overdraft - a loan in which funds are transferred by the bank to a plastic card with interest reimbursement and for a short period of time.
6. Trust loan - small amounts for a short period of time and one document.
7. for urgent purposes.

consumer credit

Most often, money in the bank under this program is taken for repairs or purchases. household appliances, or other similar purposes. The name of the direction of lending speaks for itself. The loan is provided to meet certain needs of an individual.

What kind consumer loans happen? The terms of the loan are medium-term. But there are times when consumer credit to an individual issued on a long-term basis - more than 50 months.

The conditions for obtaining a loan are: a stable income, a good credit history, the presence of collateral, and so on. The longer the term of the loan, the greater the amount of the overpayment.

The amount, compared to other programs, is not very large. But in terms of interest rates, there are also better banking offers. This setting may vary depending on different banks, depend on some conditions, such as: availability of collateral and guarantors, term, credit history, financial capabilities of an individual.

Consumer programs are in demand among clients, because the amount is issued without specifying the purpose, therefore, the borrower received the money and can dispose of it at his discretion.

car loan

One of the types of targeted financing, issued exclusively for the purchase of a car. Loan amounts are large and interest rates are low. What is more profitable than a consumer loan. It is possible to lower the rate even more if you buy a domestic car, and not a foreign car. Of all the types of loans, this is one of the most popular targeted programs.

By term - a medium-term loan, which is issued from 1 to 5 years for a domestic car, and if a foreign car is purchased, then the period increases to 10 years.

When applying for a car loan, prerequisite is to provide the purchased car as a pledge to the bank for the period of repayment of the loan, as well as mandatory life insurance of the client, his health and the object of the contract - the car. If these conditions are not met, the loan will not be issued.

The bank may require you to provide the following package of documents:

• two identification documents - a passport is required and a second one to choose from - a military ID or driver license;
• a certificate from the military registration and enlistment office for men of military age who cannot serve in the army for any reason;
• income statement;
• birth certificates of children, if any, and others.

The exact list of required documents will be provided by a bank employee, because it is different for each financial institution.

What are home loans?

A mortgage loan is issued for the purchase of any home. At the expense of credit funds, both an apartment and a private residential building can be purchased. Own square meters can be bought at the expense of consumer or mortgage program. The first option is suitable for those who already have certain amount. The size of a consumer loan, as a rule, does not exceed 1 million rubles.

For those who have a minimum start-up capital, suitable mortgage credit lending. The amount is large, the term is long, and interest rates are minimal.

Before you take out a mortgage, you need to assess your financial opportunities, because monthly payment not small. If an individual is unable to repay a debt due to mortgage agreement, then the housing will go to the bank, and the citizen will be left with nothing.

Required condition - an initial fee, which is about 15% of the total loan amount. Owners state support as maternity capital, can transfer it to the account of the first installment. You may need a guarantor to get it.

Individuals who want to buy their own home or expand existing square meters often ask what mortgage loans are. On this moment banks offer the following programs:

• for secondary housing;
• for real estate under construction;
• for the construction of a private house;
• for the acquisition of land;
• for suburban real estate.

Loan for education

One of the types of loans for individuals. It features a low interest rate and deferred payment until graduation. In most cases, lending to such areas is carried out at the expense of state support, due to which interest rates target loan for education are declining. It is important to note that Mr. support is not available in all banks. List of credited educational institutions limited. It all depends on the cooperation of the bank and educational institution. In some cases, you can draw up a debt contract for studying in another country.

Overdraft

Borrowers are often interested in what loans are available at Sberbank and other banks for individuals on a non-financial basis. a large amount with fast processing. Overdraft is one of them. If an employee's salary is transferred to a bank account debit card, and the next payment is still far away, while the amount commensurate with the salary is needed right now - you can borrow it from the bank, by the same transfer to the card. As soon as the transfer from the employer arrives on the card, borrowed funds banks will be unavailable. The benefit of the bank is in the return of the loan amount and interest on top. In case of non-repayment of the overdraft, fines and subsequent refusal of the loan are provided.

Credit on trust

Gaining popularity among customers. The loan is non-targeted, so the bank does not need to be informed of the intentions for what needs the money is issued. The amount of the contract is small, interest rates are not the highest. You can get a trust loan with only a passport.

A loan is beneficial if there is no time to collect the necessary documents and a small amount is needed.

Loan for urgent purposes

Another type of trust loan. Issued without guarantee and without collateral. It is issued quickly - about 5 minutes, and only with a passport, no other documents are required. Bank risks are offset by high interest rates.

The most advantageous offer

It is not enough just to know what loans are, it is important to be able to choose the best loan options for you. After all, one way or another, the money received will have to be returned, and the amount of the return will exceed the amount issued by the financial institution.

It is definitely impossible to determine which loan is the most profitable for an individual for several reasons:

• different purposes of lending;
• differing from each other conditions of banks;
• term of the debt agreement, etc.

If the borrower takes a loan for certain purposes, for example, to buy a car, then a target loan is suitable - a car loan, for the purchase of a home - a mortgage loan.

In the case when you need a small, but urgently needed amount, you can apply for a trust loan or a loan for urgent purposes.

For an individual who does not want to dedicate the bank to their plans for spending borrowed funds, a consumer loan is intended. To pay for vocational education, a client can also apply for a targeted loan at a bank with which his university cooperates.

Before going to the bank, you need to collect information about what kind of loans there are in this organization, the conditions for issuing them, interest rates, active shares, documents required for registration of a debt agreement.

January 2019

Bank lending to the population is an event that will never lose its relevance. Profile companies constantly offer potential clients various programs that can best meet the requirements of the borrower. Despite the fact that all banks, without exception, satisfy applications for Money only if a person meets the specified requirements, basically they are willing to go for such deals. What types of loans can there be, what are the specifics of each of them, and how to choose the best option for yourself among so many offers?

What is a loan?

A loan is a total amount of money. It consists of the main part - it is called the "body" and an additional amount that the bank charges from the client for using its capital. These funds must be returned in full within the time period specified in the contract. In fact, this is a product that financial institution sells to the buyer under certain conditions and for a certain price.

Types of cash loans are classified according to the terms of their provision, according to the conditions declared by banks, as well as according to the specific features of calculating rates, the amount of financing and many other features. If we combine all these factors, then it is preferable to group the methods of lending according to their intended purpose. So, there are the following types of loans.

consumer credit

consumer financial help A bank is a loan for any purpose. The borrower does not need to report to the company's employees about exactly where he spent the borrowed money. This is very convenient, and therefore attracts potential borrowers. Basically, in this way, people borrow for repairs, the purchase of expensive household appliances, weddings and other significant events. According to the duration of the provision of capital, they can be medium-term and long-term. In the second case, we are talking about 4 or more years.

To qualify, the applicant must have:

• collateral (significantly increases the chance that the application will be approved);
• regular source of income, which must be documented;
• good credit reputation.

A distinctive feature of such loans is the dependence of the amount of interest on the term of the contract. The longer the agreement is valid, the greater the overpayment will be. The amount that can be obtained in this way will not be too significant in comparison with other loan options provided to the population. The advantage of a consumer loan is a wide range of programs offered by banks, where everyone is able to find the ideal solution to their financial problems.

Mortgage

A mortgage loan can be obtained for any property - whether it is housing in a new building or the secondary market. Money borrowed from the bank can buy a house private cottage, apartment. Even the category of citizens who do not have large financial savings necessary for the entry fee can purchase square meters. Under consumer loan programs, as a rule, it reaches 30% of the total price of real estate, while in this case it is about 13-15%. The terms of the mortgage provide for sufficiently large loan amounts, long terms of the contract and minimal overpayments at interest rates.

The amount of monthly contributions is rather big, therefore potential borrower must adequately assess their ability to pay before resorting to obtaining a mortgage. Otherwise, the apartment, which will be a pledge until the full repayment of the debt, runs the risk of becoming the property of the credit company that provided financial assistance. A mandatory requirement of the bank is the presence of guarantors.

Almost all institutions offer their customers the following types of loans:

1. Housing in a new building - both at the stage of putting the house into operation, and during construction.
2. Secondary market.
3. Private building.
4. Buying land for a future home.
5. Country cottage.

Mortgage is an ideal solution for families with 2 or more children. For them, there are several options for investing maternity capital - the possibility of paying an entry fee, as well as paying off interest rates at the expense of federal security.

car loan

It belongs to the category of targeted financing of the population. It is characterized by a large amount of the loan against the background of a relatively low rates by percentage. Such credit policy more beneficial for the borrower than regular consumer assistance. At the same time, the purchase of a vehicle of a domestic manufacturer promises the buyer additional discounts by percentage. According to statistics, car loans are one of the most popular forms of financing for individuals.

The average term for providing funds varies from 1 to 5 years. If we are talking about an expensive foreign car, this period can be doubled. The requirement on which all banks insist without exception is vehicle will be collateral. In addition to this reimbursement option, the client will most likely be offered an additional package of services. For example, life insurance, health insurance or the car itself. If the client refuses, he most likely will not receive the loan. Each financial institution in this case determines the list of documents independently. Identification documents are required, and if available, a certificate of income.

Credit card

A customer card is a convenient option when it comes to a relatively small amount, always at the disposal of its owner. At the same time, the user can make transactions not only in any region of the country, but also abroad, bypassing the currency exchange procedures. Such cards may have a limited validity period or may be renewable.

The first option is somewhat more convenient. By paying the body of the debt, a person has the right to continue using the balance on the card for his own purposes.

Social loans

Such a loan is understood as assistance in acquiring housing for those on the waiting list of the city audience. These are people who are in dire need of improving conditions, but do not have the funds to expand the area. The list of persons who can count on a social loan is organic and regulated by the LC RF.

Features of lending

What kind of loans are there in banks, if we consider them from a different angle? For example, in terms of material risks. There is always the possibility that the client will not be able to repay the borrowed capital. How to protect yourself? To do this, there is such a thing as "collateral", and the classification of loans according to this principle means the presence or absence of additional collateral conditions for obtaining a loan.

secured loan

Security is a guarantee that the creditor in any situation will receive back his money. Even if it happens that the client will not be able to make current payments, the subject of compensation for the bank will be exactly the collateral, which will be the collateral property value. Subsequently, it will be sold at auction, and the proceeds will be used to pay off debt obligations.

The specificity of such transactions lies in the fact that the amount of collateral is almost always much less than the average. market value property. This measure is the main insurance option if the value of the real estate market begins to fluctuate downward.

Unsecured loan

If the agreement does not contain guarantors and collateral, such a transaction is classified as an unsecured loan. Amounts with such conditions are not particularly large. This financing option has the following features:

• the purpose of the loan for individuals can be any - no one will control them;
• for the company, such a loan is classified as risky;
• the transaction is relatively short-term;
• high stakes on interest they serve, albeit small, but a guarantee against possible risks;
• These operations are based on the principle of trust.

Conclusion

For a person who decides to receive financial assistance from a bank, when choosing a lending program, it is necessary first of all to build on their own material gain. Depending on the purpose of the loan, this may be a consumer loan - it is suitable for those who do not intend to advertise their expenses. To buy an apartment, it is preferable to use a mortgage, and for small current expenses - to issue a card.

Related videos

Many people have been very active in using loans for quite some time, but for some, the experience of using borrowed funds is still a curiosity. Let's figure out together whether it is easy to get a loan in our country and what you need to pay attention to so that the first contact with the bank does not end in refusal and disappointment.

What are loans?

First of all, you need to decide what you need a loan for. Today, the following main types of credit products are present in the domestic lending market:

• Target consumer credit
• Non-targeted consumer credit
• car loan
• Mortgage
• Loan for housing construction
• Business loans

Targeted consumer loans

The main difference between these loans is that the bank issues money to the borrower for the purchase of specific, pre-agreed, goods and (or) services.
As a rule, such loans are not issued to the borrower. When making a purchase, the invoice is simply forwarded to the bank for payment. In fact, the bank immediately pays for the purchase, while the money immediately goes to the seller, and the borrower simply repays the loan to the bank under the agreement.

General purpose loans

Here the situation is a little different: the bank is completely indifferent to what the borrower will spend the loan funds on, as long as he makes payments under the contract on time after he uses the borrowed funds. The borrower can spend the money received on a non-purpose loan for absolutely any goods or services at his discretion. Such money can be cashed out at an ATM and spent by paying at the supermarket, or you can buy a tour to warmer climes - everyone needs something different.
The peculiarity of non-purpose loans is that the borrower himself has to pay for the lesser curiosity of the bank. in non-targeted credit programs, as a rule, slightly worse conditions. Thus, the interest rate and late fees on such loans may be slightly higher.

Auto loans

From the name it is clear that we will talk about buying a car on credit, but not everyone knows that in this way you can buy not only new car from a car dealership, but also a used (bu) car on secondary market.
Of course, the terms of a loan for a used car and a brand new car from the salon will be different, because the risks of the bank in both cases will be different.

Mortgage

Mortgage involves the possibility of using borrowed funds to purchase housing. In our country, this type of lending is especially relevant, because real estate prices are constantly growing for young people housing issue becomes a major stumbling block.
Mortgage loan is actually a kind of target loan. the borrower does not participate in the financial side of the transaction, his task is only to provide the bank required package documents and show the apartment or house that he would like to purchase. If the bank approves the required loan amount, it simply transfers the money to the property owner after signing the purchase and sale agreement with the borrower.
Ownership of real estate from the moment the payment is made finally passes to the borrower, and the right of claim passes to the bank that paid for the purchase. Mortgage loans are one of the most long terms repayment, providing for payments over 15 years or more.

Construction loan

In fact, this is the same mortgage, only slightly modified. Here the borrower needs to provide the bank with all the documentation that confirms his ownership rights land plot on which he is going to build a house, all the necessary design and permit documents that must be issued to him by the relevant government bodies.
All this very weighty pile of papers is checked in the bank and if they do not find reasons for refusal, they give the borrower the amount of money he needs. After that, you can safely proceed to the construction of your house.

Social credit programs

Social credit programs is a very powerful tool with which the most different groups Citizens are provided with a variety of benefits when lending. For example, in our country we have special kind mortgage loans for military personnel. The essence of this loan is that the borrower, if he is a military man, having taken an apartment on credit, pays only part of this loan, while the state pays for the other part.
In our country there are different social programs loans, including:
Mortgage loan for young families
Government program subsidizing car loans
Soft loans for education and others.

Business loans

This type of loans is perfect for all entrepreneurs, young and old. A businessman can use borrowed funds in different ways, for example, he can:
purchase raw materials for your production
purchase the latest equipment
build a new workshop or even a whole factory
invest in the development of some innovative technology etc.
As you can see, there are a lot of opportunities, but in any case, the borrowed funds will have to be returned, therefore, they must be used extremely prudently and carefully, weighing all the pros and cons, as well as evaluating possible risks.

Where are loans

Having decided which loan is right for you, you can safely ask yourself where to get it.
Today, a loan can be issued even at home using a computer and the Internet. The most common options today are:
Loans that are issued directly at the points of sale of something (equipment, building materials, car dealerships, etc.).
Loans issued by banks.
Internet loans (sitting at home, you send an application for a loan to any bank, provide them with primary information about yourself and wait for a response from the bank, if the loan is approved, go to the office with a full package of documents and draw up a loan agreement. Convenient, isn't it? ?).

What determines whether a loan will be given or not

To describe in a nutshell key factor the question of whether they will give a loan or not is the solvency and reliability of the borrower. What lies behind these concepts is actually a question.
From the bank's point of view, a borrower can be considered reliable and solvent if:
The borrower is older than a certain age;
He has a stable source of income (work);
This stable source of income can be confirmed by documents (certificate from the place of work);
The borrower's income is sufficient to repay the loan (payments do not exceed 50% of the borrower's monthly income);
The borrower has some social attachments (family, permanent residence, work).
In addition to these factors, there are many others, but most banks keep them secret in order to protect themselves from all sorts of fraud.

How easy is it to get a loan?

There can be no single answer to this question. Objectively assess the situation, if you fit the description above, then your chances of obtaining a loan are quite high. In the same case, if any of the items (or even all) do not match established requirements, then problems may arise. In any case, in order to increase your chances of obtaining a loan, you should provide the most complete package of documents confirming your ability to pay.

What are loan payments?

In fact, there are only 2 types of loan payments:
Differentiated
Annuity
Their difference lies in the fact that differentiated method the body of the loan gradually decreases and the interest, as a result, too. With this type of payment, by the end of the loan term, the amount of monthly payments is significantly reduced.
With annuity payments, the picture looks different. The borrower pays the same amount every month from the very first payment to the last one. The differences are clearly shown in the diagram below.

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

Credit is a commodity sold at a specific price, loan interest and under specific conditions for a period, with a return.

• The seller of the loan is the lender, the lender.
• The buyer of the loan is the debtor, debtor, borrower, borrower.
• The specific conditions under which a loan is granted constitute the basic principles of lending.

Main lending principles are recurrence, urgency and payment. recurrence assumes that the values ​​transferred in debt in the form agreed in advance (loan agreement), most often in cash, will be returned credit seller (creditor). Violation of the principle of repayment may cause irreparable damage to the creditor, therefore, in modern conditions it is customary to stipulate the types of insurance in loan agreements credit risk. The target orientation of lending ensures the repayment and payment of the loan.

Loan agreement- a written agreement between the creditor and the debtor in the provision and receipt of a loan, specifying in detail the conditions of repayment, urgency and payment.

According to Art. 819 of the Civil Code of the Russian Federation under a loan agreement, a bank or other credit organization(creditor) undertake to provide funds (credit) to the borrower in the amount and on terms, stipulated by the agreement, and the borrower undertakes to return the received sum of money and pay interest on it. The loan agreement must be concluded in writing. Failure to comply with the written form entails the invalidity of the loan agreement.

Credit risk- the risk of default by the debtor to the creditor of the loan. Credit risk insurance is a system of measures to ensure that the loan is repaid to the lender on time.

Loan maturity

Lending urgency is a natural form of securing the repayment of a loan. It means that the loan must not only be repaid, but repaid within the period strictly specified in the loan agreement. To this end, the loan agreement elaborates loan repayment and interest payment schedule. For example, the repayment schedule for a loan issued with the condition of repayment in 10 years from 10% per annum looks like in the following way(Fig. 1):

Rice. 1. Loan repayment schedule for 10 years at 10% per annum

Loan security

Loan security- an additional principle of lending, which is always included in the loan agreement.

With the adoption of the law "On banks and banking" commercial banks got the opportunity to issue loans to their customers under various forms of its security.

The most common types of loan collateral are:

• material assets that are pledge obligation;
• guarantees of solvent intermediaries and individuals (etc.);
• insurance policies issued by borrowers in the insurance company for the risk of default on the loan;
• liquid .

Loan payment

Principle payment loan means that the borrower of money must pay a certain lump-sum fee for using the loan or pay within a specified period.

Purpose of the loan

Additional principle lending is his target orientation, which creates conditions for compliance with the principles of repayment and payment of loans, as well as, to a certain extent, their urgency. This principle involves the issuance of a loan for a clear purpose of its use (specified in the loan agreement). The target orientation 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 credit differentiation means a different approach to borrowers depending on their real opportunities repay the loan.

The principle of a differentiated approach to borrowers, depending on their real ability to repay the loan taken, 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 range of criteria.

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

The combined application in practice of all the principles bank lending allows to observe both the national interests and the interests of both subjects of the credit transaction of the bank and the borrower.

Loan types

Rice. 2. Types and forms of credit

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

commercial loan- this is the provision of goods by the seller to the buyer with a deferred payment. Since there is no immediate payment, the term of the loan is the deferred payment period. For this loan, of course, interest is charged (Fig. 3).

Bank loan- this is the provision of a loan to the 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 on bail. Recipients bank loan there may be both individuals and legal entities (Fig. 68).

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

bank profit = Loan interest— Deposit

As follows from the presented formula, the bank, trading in 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 rate of interest is a dynamic value and depends primarily on the ratio of supply and demand for loan capital, which, in turn, are determined by many factors, in particular:

• scale of production;
• dimensions cash savings, savings of all classes and strata of society;
• the ratio between the size of loans provided by the state and its debt;
• cyclical fluctuations in production;
• its seasonal conditions;
• the rate of inflation (if it increases, interest rates rise);
• government regulation of interest rates;
• international factors (unbalanced balance of payments, fluctuations exchange rates, uncontrolled activity of the world loan capital market, etc.).

• participation in a credit transaction of one of the credit institutions;
• a wide range of participants;
• the monetary form of the loan;
• a wide range of loan terms;
• differentiation of credit conditions.

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

Factoring- intermediary operation (dealing) credit institution to collect funds from the debtors of his client and manage his debt claims.

Consumer credit is related to lending by banks end consumer (population). Its main specifications:

borrowers are individuals;

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

3. Opening bank accounts.

Loans are actively used by a large number of people. It's comfortable and fast way get money for the necessary expenses. The fee for the service is interest from the borrower to the lender. It is important to be informed about what loans are.

The very concept of "credit" can be interpreted quite voluminously, but in all cases it involves the issuance of funds that will need to be returned through certain time with interest. An organization, most often a bank, provides the borrower with the necessary amount in the amount requested by him. In this case, a contract is drawn up with clearly defined conditions. One of the most important is the payment of interest depending on the size and terms of the loan. Therefore, awareness of all types and conditions of loans is so important for a modern person.

Loans are divided into two main categories, differing in requirements, interest and the amount issued:

1. For individuals. They can be taken by people who do not own their own business.
2. For legal entities. Issued to entrepreneurs who own their own business, individual entrepreneurs and other commercial organizations.

Loans for individuals

There can be many classifications of loans, because financial assistance is needed under completely different living conditions, which implies a significant variability in loan programs.

Loans for individuals, depending on the period of issue, are divided into subcategories:

• short-term: payment term up to a year;
• medium-term: the minimum payment period is one year, the maximum period is five years;
• long-term: the period is from five to several decades.

Each subcategory of a loan has its own nuances by terms. A short term loan corresponds to a small amount taken for temporary needs, for example, to buy a telephone or home appliances. A large amount can be obtained if the repayment period is medium or even longer. The longer the period for repayment the borrower chooses, the greater the amount he can receive. There is also an on-call type of loan by maturity. Here, the payment period is minimal, up to a year, but the money must be returned at the request of the bank.

There are types of loans according to their purposes:

• a target loan is provided for a specific case, a citizen does not have the right to dispose of money for other needs;
• non-purpose loan provides money to the consumer for free use, without controlling its use in any way.

Depending on the method of payment, loans are divided into:

• loans from lump sum payment, implying the return of the entire amount, these are mainly on-call and short-term;
• loans taken in installments are repaid monthly in installments in accordance with the repayment schedule.

One of the important characteristics of debt repayment, which can be issued in three different ways:

1. On trust. The bank issues a simple loan, without any guarantees of the return of the amount issued. Only an agreement is concluded - the only document on the responsibility of an individual to the bank.
2. Under surety. The borrower enlists the support of another individual who can guarantee the repayment of the loan. Another person takes responsibility to repay the debt, in case of any unforeseen complications with the borrower.
3. On bail. The pledged property of the borrower becomes a guarantee of payment. It can be a car, house or other personal property. Usually, this is how a mortgage or car loan is issued.

There are two more types of loans, differing in the degree of risk:

• increased degree of risk;
• usual degree of risk.

It happens that the borrower does not inspire confidence in the organization with his financial situation. Such people usually have delinquent loans, or pay debts with long delays. This also applies to persons who have asked to extend the term of the loan. Such clients become problematic for the bank, as it loses its revenue because of them.

Types of loans by purpose

Lending to individuals in accordance with its purpose distinguishes the following types of loans:

• consumer;
• automobile;
• mortgage;
• social;
• confidential.

consumer credit

Or a non-purpose loan is a loan issued by financial institutions to an individual to meet his needs. This type of loan is also called a "loan for goods and services" and refers to non-purpose. Such lending allows citizens not to save money in anticipation of the desired purchase, but to purchase it with the money received from the bank. At the same time, the organization that provided the loan does not control the borrower's spending. From positive sides can be called a minimum of requirements, the speed of registration. But the interest on this common loan is higher than on the target one. Registration is carried out on trust, the bank draws up an agreement with a list of obligations of the borrower. The bank does not have a full guarantee that the client will fulfill the terms of the agreement, but in case of violation, the organization has the right to sue and return the money with interest and fines.

car loan

Car loan is target loan taken on the security of the car chosen for the purchase. You can buy a new or old car. The negative side of a car loan is that it is necessary to pay an initial payment, which can reach 40 percent of the cost of the car. The amount is transferred directly to the seller, the borrower does not come into contact with the money. You need to take out CASCO insurance. The positive feature of this type of loan is more low interest compared to consumer.

Mortgage

The loan is issued against the security of the purchased housing. There is an initial deposit of money in the amount of 10 to 15 percent of the mortgage amount. The loan term is quite long, it can be up to ten years. The percentage is taken low, but monthly amount, nevertheless, it turns out weighty. The overpayment for housing taken on credit is large, but for many families a mortgage is the only way to buy an apartment. One of the most important conditions for a mortgage is a good and stable income of family members.

Social

This type of loan is provided by the state as an aid to people with insufficient income. Collective borrowers also have the right to take it if there is a guarantee of repayment of the loan from the state. The decision on the issue of social lending is made by the authorities local government. Certain categories of citizens take part in social lending. The most common type of such loan is social mortgage. You can also apply for a loan for education, vocational rehabilitation. Interest rates are much lower than other types of loans.

Confidential

Provided to people with good credit history. Timely repayment previous loan in the same bank gives a reliable client some advantages. Interest rate will be lower, and the period for consideration of the application will be reduced to one or two days. For granting a loan bank commission will not be charged. The borrower will be able to pay off the debt ahead of schedule without a commission fee. The negative side can be called a small size of the amount and term of granting a trust loan.

Loans for legal entities

Small businesses use the services quite often. Legal entities have several possible options for obtaining loans:

• for current activities;
• investment;
• business mortgage;
• special types, including letters of credit, leasing and factoring.

For current activity

Such a loan is taken to develop a business, improve the technical equipment of an enterprise or replenish working capital. Provided as . Maximum term is up to three years. The interest rate depends on the amount of money and terms. The credit limit depends on the current turnover.

Investment

This is the so-called money under the business plan. The loan is taken by the enterprise for the implementation of a new project, the development of a new direction of activity. The main requirement is that the entrepreneur must invest about 30 percent own money. The term can be up to 10 years, it is possible to obtain a deferment. The collateral is the company's assets.

business mortgage

This type of loan is in many ways similar to a conventional mortgage. But the premises, on the security of which the borrower takes a loan, must be included in the list of objects non-residential fund. The duration of a business mortgage is up to thirty years. A deposit of 10 to 30 percent of the cost of the purchased premises is required.

Letter of credit, leasing and factoring

The leasing company acquires the property required by the borrower, after which he can rent it. After the end of the contract, the company becomes the owner of this property. You must provide a profit and loss statement.

If the conditions are not met, the owner company easily seizes the property. Requires a fairly large contribution of funds in the amount of 20 to 30 percent of the total cost.

The factoring agreement is based on the repayment by the bank of the amount taken by the borrowing company from the lender. The main condition is that there must be a fairly long relationship with buyers or the buyer is a large commercial network. A letter of credit is the opposite of factoring. The bank receives documents on the actual fulfillment of the supply contract and pays the company's debt to suppliers.

Depending on the type of provision, loans are:

1. One-time. The entire required amount is credited immediately to the borrower's account, while there is no possibility of renewing the limit. This is a one-time loan for a specified period. The percentage is fixed.
2. By agreement. Credit line represents an obligation of a credit institution to issue loans to a client for a period of certain period, while there is an agreed limit.
3. Overdraft. This is a preferential form of lending. Provided to borrowers with stable financial position in case of temporary need of a small amount. The cardholder can get a loan for a short period of time. At the same time, based on the name, the borrower has the right to spend a large amount, that is, to borrow. The bank has a guarantee that the client regularly receives money to his account and will be able to close the debt. The interest on the loan is usually low, as the loan term is short.

The credit system is developing more and more rapidly and confidently. You can get the amount you need without leaving your home, via the Internet. And also get a loan at a bank, places of sale of the necessary thing. The main thing is to carefully read the contract and make your own calculations in order to choose the most advantageous loan option.