Bank loan

Bank loans are classified according to several criteria:

1. By maturity:
   • on-call
   • Overnight
   • short term
   • medium term
   • long term
2. By repayment method:
   • redeemable in one amount at maturity
   • redeemable in equal shares at regular intervals (this option involves agreeing on a repayment schedule for the principal amount of the debt and interest with specific dates and amounts)
   • redeemable in unequal proportions at various intervals:
     • compound loan (with repayment of 20 to 50% of the loan amount at the end of the term);
     • progressive loan (with payments progressively increasing towards the end of the term of the loan agreement);
     • seasonal loan (loan for seasonal production with repayments only in those months, which account for the maximum amount of revenue).
3. By the method of collecting loan interest :
   • fee at the time of repayment of the loan
   • payment in equal installments during the entire term of the loan agreement
   • payment at the time of issuing a loan
   • without interest
4. By availability of collateral :
   • trust (unsecured) loans
   • secured loans
   • loans under financial guarantees of third parties
5. For the intended purpose:
   • related (target) loans, for example:
     • payment (to conduct a specific commercial transaction or meet temporary needs)
       • for payment of settlement (payment) documents of client’s counterparties ;
       • for the purchase of securities ;
       • for advance payments;
       • on payments to budgets ;
       • on wages (issuing money by check from the borrower's loan account).
     • to finance production costs, that is, to
       • the formation of inventories;
       • financing of current production costs;
       • financing of investment costs, including loans for leasing , etc. operations (intermediate).
     • accounting (purchase) of bills , including repo transactions .
     • consumer loans .
   • general loans (unearmarked, unrelated).
6. In the form of a loan:
   • non - cash loans:
     • crediting non-cash money to the appropriate account of the borrower, including restructuring a previously issued loan and providing a new one;
     • lending using bank bills;
     • in mixed form (a combination of 2 previous options).
   • cash loans (usually to individuals )
7. By interest rate:
   • • The interest rate on the loan is greater than zero;
     • The interest rate on the loan is zero;
     • The interest rate on the loan is less than zero ^[3] .
8. By loan technique:
   • one amount;
   • in the form of an overdraft ;
   • in the form of a credit line:
     • simple (non-revolving) line of credit;
     • revolving ( revolving ) line of credit, including:
       • on-line (on demand) credit line (lending within the agreed limit amount and within a specified period of time, so that the limit can be restored continuously and automatically (without entering into an additional agreement) upon repayment of previously taken tranches );
       • contractual credit line (lending within the agreed amount of the limit and the established term of the agreement, in which tranches are continuously and automatically issued and repaid, reflected in a single checking account , combining the properties of the loan and settlement accounts, the limit is restored each time).
9. By the method of providing a loan:
   • individual loan (provided to the borrower by one bank)
   • syndicated
10. By categories of potential borrowers :
    • Agricultural loans
    • Commercial loans
    • Stock Market Loans
    • mortgage loans to property owners
    • interbank loans
    • Credit for legal entities
    • Loan for individuals

Other criteria can be used to classify loans into particular groups and types.

Bank loans are divided into active and passive. In the first case, the bank grants a loan, that is, acts as a creditor , in the second case it takes a loan, that is, it is a borrower. A bank may enter into credit relations (take or give loans) with other banks (other credit organizations ), including the Central Bank of the Russian Federation , performing an active or passive function, depending on the situation. Such relationships are called interbank lending . As for lending to enterprises, organizations, institutions and individuals (non-financial sector of the economy), the bank’s credit relations with them are of a different nature - it is almost always a creditor.

Commercial banks are state-limited by the Bank of Russia in issuing loans. The restrictions are in the form of a reserve requirement and an averaging factor (see Bank Multiplier ).

On August 24, 2010 in Russia, for every 1 ruble of the reserve fund at the central bank, commercial banks can issue no more than 40 rubles to individuals as a loan. This is due to the value of the reserve norm (2.5%). The multiplier can be calculated from the ratio of 100 / Reserve rate in percent.

To obtain, for example, one of the most common loans - a consumer loan - the following sequence of actions works:

• The borrower comes to the store and decides to purchase the goods on credit. With a bank representative (administrator), they fill out an application for a loan and send it to the bank, provided that the client meets the mandatory requirements of the bank.
• The application is considered by the bank. The review is handled by the authorization department. A message comes from the authorization department to the same store with the result - “Failure”, “Approval” or “Failure, but with alternatives”.
• If the decision is positive, the client and the administrator draw up all the loan documentation. If the down payment is available, then the client immediately pays for it.
• The administrator at the end of the working day sends all the concluded agreements to the bank (to the registration department), where the agreements are registered. Then, money is transferred to the store for goods provided on credit.

In the Russian Federation , credit relations are usually formalized by a loan agreement or a loan agreement . Loans under a loan agreement may be issued only by credit organizations . The most significant difference between a loan and a loan is that a loan agreement is considered concluded from the moment of transfer of money (real agreement), and a loan agreement - from the moment of its conclusion.

The contract assumes the existence of two parties: the lender and the borrower . According to the agreement, the lender is obliged to provide a loan, and the borrower to accept a loan and repay the loan in a timely manner by paying interest.

The full cost of the loan is the borrower's payments under the loan agreement, the amount and terms of payment of which are known at the time of its conclusion, including taking into account payments to third parties determined by the agreement, if the borrower's obligation for such payments arises from the terms of the agreement. The total cost of the loan is calculated as a percentage per annum. A credit institution is obliged to inform the borrower of the full cost of the loan before concluding a loan agreement. Banks must provide the customer with information in advance on what the sum of payments is made up. The formula for calculating the total cost of the loan was established by Bank of Russia Ordinance No. 2008-U dated 13.05.2008 “On the Procedure for Calculating and Bringing the Full Cost of the Loan to the Borrower”.

In Decree No. 8274/09 of November 17, 2009, the Presidium of the Supreme Arbitration Court of the Russian Federation declared it illegal to include in the loan agreement the conditions on obligatory payment by the borrower of fees for opening and maintaining a loan account.

Loan commissions are illegal for the following reasons.

First of all, when concluding a loan agreement with a bank, a citizen borrower acts as a consumer, and in addition to the Civil Code of the Russian Federation and other legal acts, the Law on the Protection of Consumer Rights applies to its relations with the bank. According to paragraph 1 of Art. 16 of the Law on the Protection of Consumer Rights, the terms of the contract that infringe on the rights of consumers in comparison with the rules established by laws or other legal acts in the field of consumer protection are recognized as invalid. In accordance with paragraph 1 of Art. 819 of the Civil Code of the Russian Federation under a loan agreement, the bank undertakes to provide a loan to the borrower in the amount and subject to the conditions stipulated by the agreement, and the borrower undertakes to return the received amount of money and pay interest for it. The actions of a bank to open and maintain a loan account and issue a loan cannot be qualified as an independent banking service. Thus, the terms of the contract, providing for the issuance of a loan, opening and servicing of a loan account, cannot be the subject of a transaction and infringe on the rights of the consumer, therefore, the indicated actions of the bank are unlawful and the paid bank commission amounts must be returned to the borrower.

An annuity payment is an equal monthly loan payment, which includes the amount of accrued interest on the loan and the amount of the principal debt . The calculation of the annuity payment in banks is made according to several different formulas. Therefore, even with the same interest rate, the size of the annuity payment may vary from one bank to another.

Differentiated payment is a monthly loan payment that decreases by the end of the loan term and consists of a paid fixed share of the main debt and interest on the outstanding loan balance.

• State . The transaction is concluded by the state and the individual or legal entity. It is aimed at paying for municipal activities. A loan or securities issue is provided.
• Interbank . This is a redistribution of funds between participating banks. The lender bank gives profitable unnecessary amounts that the customers of the borrowing banks receive as loans.
• Social . Milder conditions for the vulnerable layer of the population.
• Subordinated . The institution gives the borrower a period of up to 5 years a certain amount at a certain percentage. At the end of the term, the borrower is obliged to pay the debt in a single payment. The amount of interest does not exceed the rate set by the Central Bank.
• Microcredit Such a loan was created for the development of small entrepreneurs who cannot get ordinary bank loans.

The unconditional principles of bank lending are:

1. The principle of urgency means that a loan is given for an uniquely defined period.
2. The principle of repayment assumes that within the period specified by the contract, the entire loan amount must be repaid in full.
3. The principle of payment implies that the borrower must pay the agreed amount of interest for the right to use the loan.
4. The principle of submission of a credit transaction to the norms of legislation and banking rules (in particular, it is mandatory to draw up a loan agreement or an agreement in writing that does not contradict the law and regulations of the Central Bank of the Russian Federation).
5. The principle of invariability of credit conditions . That is, a change in the terms of the loan agreement (agreement) should be made in accordance with the rules formulated in the loan agreement itself or in a special appendix to it.
6. The principle of mutually beneficial credit transaction means that the terms of the transaction must adequately take into account the commercial interests and capabilities of both parties.

In a special group of principles, it is necessary to single out the widespread lending rules, which are used if the will of the parties is expressed in the loan agreement and should not be applied if they are not included in such an agreement (not unconditional principles):

• principle of targeted use of credit;
• principle of secured lending (a loan may be secured in full, partially or not at all).

In addition, the lending principles, which are intended for “official use” by bank employees and should be fixed in their internal documents as an element of credit policy, can be distinguished into another group.

The Bank develops and approves internal documents that determine its credit policy, as well as accounting policies and approaches to its implementation, as well as documents that determine the decision-making procedures on the allocation of funds by the bank, the distribution of functions and powers between divisions and officials of the bank, including internal rules placement of funds, including customer lending rules.

The issuance of a loan depending on the type of client can be carried out in the following order:

• legal entities - in non-cash form by crediting funds to a current, current or correspondent account ;
• to individuals - in non-cash form by crediting funds to a person’s account in a bank or in cash through a bank cash desk;
• loans in foreign currencies are issued to legal entities and individuals only in non-cash form.

A loan is issued on the basis of an order duly drawn up by the bank’s credit department and signed by an authorized official of the bank. The creditor bank is obliged to create reserves for possible losses on loans (RVPS) from lending activities in the manner established by the Bank of Russia.

Repayment of the main debt and interest on the loan is carried out in the following ways:

• writing off funds from the borrower's account on his payment order ;
• debiting funds from the account of a borrower serviced in another bank, based on the payment request of the creditor bank. In this case, funds may be debited without the acceptance of the account holder, if such an opportunity is provided for in the contract and the borrower has notified in writing the bank where his accounts are open, about his consent to such debiting in accordance with the concluded contract;
• debiting funds from the account of the borrower, a legal entity serviced by the creditor bank itself, on the basis of the payment requirement of the latter (in an unapproved manner, if provided for in the contract);
• by transferring funds from the accounts of borrowers - individuals on the basis of their written orders, by their transfer of money through communication enterprises or other credit organizations;
• cash deposit to the cashier of the creditor bank;
• withholding from the amounts due for payment of labor of borrowers who are employees of the creditor bank (on their applications or on the basis of an agreement).

On the day specified in the loan agreement (the day of payment of interest and / or repayment of the principal debt), the accountant responsible for maintaining the borrower's account, on the basis of a corresponding order signed by an authorized official of the bank, or draws up the fact of payment of interest and / or repayment of the principal debt by accounting entries , or (in case of non-fulfillment or improper fulfillment by the client of his obligations under the contract) transfers the arrears of the client to the accounts of overdue debts.

Debt on loans, uncollectible and / or recognized unrealistic for collection, is deducted in the prescribed manner from the bank balance at the expense of reserves specially created for such a case, and if there is a shortage of such funds, it is credited to the losses of the reporting year.

Loan price - the monetary expression of the payment of the loan. It depends on the level of interest rate established by the lender for its use. The price of a loan is related to the principle of payment or retribution of credit relations. Allocate bank loans with a market interest rate, an increased rate, a preferential rate. The market price of a loan is formed in the market at the moment based on supply and demand for various types of loans. В периоды инфляции она весьма подвижна и имеет тенденцию к повышению. Цена кредита повышенная, как правило, возникает в условиях значительных рисков кредитования заемщиков (нарушение условий кредитования, предусмотренных в договоре, ожидание повышения стоимости кредитных ресурсов и др.). Льготная цена кредита используется при дифференцированном подходе к заемщикам.

Рефинансирование - процесс привлечения нового кредита для закрытия старого. Привлечения рефинансирование возможно как для закрытия сделок в другом банке, так и в том же.

Рефинансирование можно добиться следующего:

• Уменьшить размер ежемесячного платежа путем снижения процентной ставки или увеличения срока кредитования;
• Объединить несколько кредитных договоров в один и, таким образом, упростить погашение;
• Получить дополнительную денежную сумму на любые цели через увеличения суммы кредита.

Comments

Сноски

• Положение Центрального Банка Российской Федерации от 31.08.1998 N 54-П «О порядке предоставления (размещения) кредитными организациями денежных средств и их возврата (погашения)» // Вестник Банка России. — 29.11.2001. — № 73 .
• Положение Центрального Банка Российской Федерации от 31.08.1998 N 54-П «О порядке предоставления (размещения) кредитными организациями денежных средств и их возврата (погашения)» // Вестник Банка России. — 29.11.2001. — № 73 .
• Лаврушин, О.И. Деньги, кредит, банки: Учебник. - 2nd ed., Revised. и доп.. — М. : Финансы и статистика, 2000. — 464 с.

• Микрофинансовая деятельность
• Объединённое кредитное бюро