Loan

A loan is a system of 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, and payment. Click here to get loan.

A loan is a product sold for a specific price — loan interest, and on specific conditions — for a period, with repayment.

Credit seller — creditor, lender.
Loan buyer — debtor, debtor, borrower, borrower.
The specific conditions on which a loan is granted constitute the basic principles of lending.
The main principles of lending are repayment, maturity and payment. Repayment assumes that the values ​​transferred in debt in the form agreed in advance (credit agreement), most often in cash, will be returned to the seller of the loan (lender). Violation of the principle of repayment can cause irreparable damage to the lender, therefore, in modern conditions, it is customary to stipulate credit risk insurance methods in loan agreements. The targeted focus of lending ensures repayment and repayment of the loan.

A loan agreement is a written agreement between a creditor and a debtor when granting and receiving a loan, which specifies in detail the conditions of repayment, urgency and payment.

Credit risk — the risk of a debtor not repaying a loan to a creditor. Credit risk insurance — a system of measures to ensure repayment of a loan to a lender on time.

Loan urgency
Credit urgency is a natural form of securing loan repayments. It means that the loan should not only be repaid, but repaid within the time period strictly specified in the loan agreement. For this, a loan repayment schedule and interest payments are developed in detail in the loan agreement.

Loan security
Credit 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 were able to issue loans to their customers under arzlichnye forms of collateral.

The most common types of collateral for loans are:

material assets drawn up by a pledge obligation;
guarantees of intermediaries of solvent legal entities and individuals (banks, etc.);
insurance policies issued by borrowers at an insurance company for the risk of default on a loan;
liquid securities.