Basic forms of credit and their characteristics

Forms of credit are different types of loans,classification of which is carried out on several basic grounds. One of the evaluation criteria is the loan cost, under which loans can be divided into three types: cash, commodity, mixed. Since the first creditors in history were subjects with significant surpluses of consumer goods, loans were initially issued in the form of specific products in kind. With a commodity loan, the debtor gradually repaid the cost of borrowed goods with money, and only after full repayment they became his property.

In developing countries, mixed forms of creditare often used even now, with a loan usually issued in cash, and is paid through the provision of goods for this amount, taking into account the interest accrued for the use of borrowed funds. However, in developed economies, similar types of loans have long ago become a thing of the past, and they have been replaced by credit and money relations. Considering the basic forms of the loan, it is possible to single out classical loans that do not bear the character of barter and commodity relations. With such loans, the borrower is provided with only free cash, for which he purchases the right products, real estate, fixed assets, transportation, equipment.

Commercial loan

Modern forms of credit and their characteristics inare largely associated with the purpose of obtaining a loan, as well as with the entity that provides the loan. If in such transactions banks and financial structures, and commercial organizations, are involved, bills of exchange are most often used to formalize the transaction. Such a loan is called commercial or commercial, and the main purpose of this type of loan is the desire of the parties to the transaction to maximize the process of selling products and quickly make a profit. Now in developed countries, instead of a bill, a standard contract between a consumer and a supplier is often used, where the order of payment for the goods sold is clearly regulated.

State loan

Such forms of credit as a state loan,provide for the participation in the transaction of government officials, and instead of personal savings of citizens or legal entities on a loan from the budget. As a rule, money is transferred through the Central Bank, or through commercial financial institutions, if the country's leadership involves the funds of other institutions to finance it.

International credit

If the borrower and the creditor are residentsdifferent states, then the credit relations that arise between them take the form of international loans. In situations where the parties to the transaction are the IMF and representatives of the authorities of the country borrowing funds, the loan is issued only in cash, and in one of the universally recognized world currencies. When transactions between residents of different countries, the purpose of which is the conduct of foreign trade activities, a loan is often provided in a commodity form, and is a type of commercial loan for the importer.

Civil loan

Now, civil forms of credit are usedmost often, they are usurious in nature and are divided into production and consumer loans. At the first version of the loan, the subjects of the transaction are banks and legal entities, and the money received by the debtor is spent on the replenishment of fixed assets and working capital. Consumer loans were developed for citizens who want to purchase a particular product or solve their temporary financial difficulties. Typically, such loans can be issued in cash or the bank independently transfers funds to a trading organization in which the borrower purchases consumer goods.