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Money and credit - Ivanov V.M.

15.3. Forms and types of loans

Depending on the form of movement of value, two forms of credit are distinguished - commodity and monetary.

In commodity form, credit relations arise between sellers and buyers; if the latter receive deferred goods or services, this is a commercial loan.

Commercial credit is provided by the supplier to the buyer when the producer wishes to sell the goods, but the buyer does not have money to purchase it. In this case, the goods can be voluntarily transferred by the supplier to the buyer on credit, and the transfer itself can be drawn up with a bill of exchange.

The scope of the commodity form of credit is insignificant, most of it is granted and repaid in cash.

Cash loan acts primarily as a bank. Credit relations between banks and customers arise not only when the latter receive a loan, but also when they place their money in the form of deposits in current and deposit accounts. Bank credit determines not only the circulation of goods, but also the accumulation of capital.

Forms of loans are constantly evolving, the place of a particular form of loan is changing at each stage of development of the country's economy.

In addition to forms of loans in the economic literature consider types of loans. According to the most common classification, depending on the organization of credit relations, inter-farm, bank and state loans are allocated.

Inter-farm credit - credit relations arising between individual enterprises, organizations, business entities in the process of their settlement relationships, as well as between enterprises, organizations and business entities, on the one hand, and sectoral management bodies, on the other hand, in the process of their financial relationships. This type of loan includes:

• commercial credit, which is provided in commodity form by sellers to buyers in the form of a deferred payment for goods sold (services provided);

• accounts receivable and payable that arise between business entities, and the reason for the occurrence of such debt is the time gap between the transfer of money and goods;

• temporary financial assistance provided to their enterprises by sectoral management bodies on a return basis.

A bank loan is a credit relationship in which one of the parties (in the role of a loan recipient or lender) is a bank.

State loan - a set of credit relations in which the borrower is the state, and creditors are legal entities or individuals.

Depending on the intended use, the loan is:

• production;

• consumer.

Credits vary in terms of use:

• urgent, granted for a period specified in the contract (short- (up to 1 year), medium- (1 to 3 years), long-term (over 3 years));

• demand, issued for an indefinite period; at the request of the creditor must be returned at the time specified by him;

• past due, the repayment period established by the loan agreement has passed;

• deferred loans, the maturities of which were postponed to a later date.

If loans are secured, they are called secured, or pawnshop, and if unsecured, they are called unsecured, or blank. Most loans are provided under various forms of collateral.

In the practice of Western banks, the classification of loans is used depending on their qualitative characteristics: top quality; satisfactory; marginal; critical; unprofitable; write-off.

It should also be noted that in the economic literature there is no consensus on the number and composition of signs of classification of types of loans. The above symptoms are incomplete. In addition, in the literature and regulations there is a confusion of the concepts of “types of loans” and “forms of loans”, which cannot be agreed.