Forms of Credit Relations and their Development in Modern Conditions

Credit relations are implemented in practice in various forms. Signs of allocation of a form of credit are: the object of a credit transaction, the composition of its participants, the organization of credit relations, etc.

Depending on the content of the credit transaction and the composition of its participants, a bank loan is considered, state, consumer, commercial and interstate (international).

Taking into account the peculiarities of the organization of credit relations, some experts propose to allocate the following forms of credit: inter-farm, deferred payment for goods, bank, bond.

Focusing on such a sign as the nature of the loaned value, it is advisable to distinguish between commodity and monetary forms of credit, depending on the target needs of borrowers - productive and consumer. Consider the content of the forms of credit relations, based on one of these features.

Bank credit is the most important form of credit. It expresses the economic relations between the creditor, which is the banks, and the borrower - enterprises, organizations. In practice, a bank loan has been developed as a loan of money provided to customers on terms of repayment, urgency and payment. A bank loan, depending on the terms of use and object, can be short-term and long-term.

A short-term loan is directed to working capital for the formation of inventories, the implementation of costs, the conduct of trade and procurement activities. The term of their use, as a rule, does not exceed one year.

At present, in domestic banking practice, this type of bank loan is the most common, it accounts for 90% of banks' credit investments in the economy. Main reasons: inflation, short-term nature of the resource base of banks, expressed mainly in the predominance of balances on settlement and current accounts of organizations. In addition, the reasons for the widespread use of short-term loans are the insufficient capitalization of the banking system, an undeveloped system for assessing the investment creditworthiness of borrowers in long-term lending, etc.

Long-term credit goes to fixed capital. It is used as a source of new construction, reconstruction, expansion of production, i.e. capital investments.

Depending on the collateral, secured and unsecured (blank) loans are distinguished.

Secured loans are issued for specific sources of repayment: pledge of material values, third party guarantee, surety, on the basis of borrower's liability insurance. Consequently, these loans for the bank are the most reliable, less risky and more common.

Unsecured loans are provided without the use of a specific secondary source of repayment. Borrowers of such rather risky loans are creditworthy clients with an impeccable reputation.

Depending on the mechanism of lending, a bank loan is divided into accounting, pawnshop, current account, consortium.

An accounting credit is issued in the form of a bank's purchase of commercial bills of exchange from the holder of a bill. When issuing such a loan, the latter is preliminarily charged an accounting percentage (discount) for early receipt of money on a bill.

A pawnshop loan is issued by a bank secured by movable property. The object of pledge can be goods, household appliances, securities, deposit accounts in a bank, jewelry, vehicles, etc.

A checking loan is issued by a bank from a single active-passive account that combines the features of a settlement and loan account. Such a loan is provided to cover the lack of funds in the account in the event that the client's obligations exceed his requirements. In domestic practice, this type of lending is not used.

A consortium loan is a loan issued by the association of several banks in order to reduce risks, as a rule, for large investment projects.

According to the timeliness of repayment, a bank loan is divided into urgent, deferred (prolonged) and overdue.

Term loans are loans that are expected to be repaid in the future. The category of deferred loans includes those for which the maturity date is postponed by the bank to a later period at the request of the client.

Overdue (prolonged) loans are those that are not repaid within the established period fixed in the agreement. Such loans represent an increased risk for the bank, therefore, higher interest rates are set for them, and insurance reserves are formed in a significant amount compared to term debt.

State credit is a special form of credit relations when the state, represented by its bodies, acts as a lender or borrower: the Ministry of Finance, local authorities, central banks.

In practice, this form is implemented in the process of issuing and placing state loans: bonds, treasury bills, etc. The purpose of a state loan is that through the accumulation of temporarily free funds of organizations, banks, and the population, the budget deficit is financed and government expenditures are covered.

In addition, government credit serves as one of the instruments of monetary regulation. This is manifested in the process of the central bank's operations on the open market for the purchase and sale of government securities in relations with commercial banks.

Another type of public credit occurs when the state, on the contrary, acts as a creditor. In practice, this is implemented in the course of the provision of refinancing loans by central banks to commercial banks in the form of rediscounting bills of exchange, pawnshop loans secured by securities, etc.

Consumer credit - economic relations between the lender and the borrower regarding lending to the end consumer. In this case, individuals act as a borrower, the lender is banks, more often specialized: savings, credit unions, savings and loan associations, as well as non-bank credit organizations, such as pawnshops.

By the nature of the loaned value, consumer credit can be commodity (sale of goods with installment payment by stores) and monetary (issuance of targeted loans to the population by banks and non-bank credit organizations).

The types of consumer credit according to the terms of provision and security are the same as in the classification of a bank loan (see above).

Investment loans, loans for the purchase of expensive durable goods, loans for urgent needs, for paying for tuition at a university or college are allocated for the target area.

Investment loans are intended for individual housing construction, reconstruction and overhaul of houses, and the purchase of apartments.

Mortgage housing loans issued on the security of the borrower's real estate are a special variety. In domestic practice, Sberbank of Russia, other commercial banks, special housing funds and mortgages are traditionally engaged in providing these types of long-term loans to the population.

According to the mechanism of provision, loans are allocated using credit cards. A credit card is a certificate of issuance of a consumer loan within the limit set for the client. Thus, the owner of the credit card gets the opportunity to pay for goods and services at the expense of the bank's borrowed resources.

A commercial loan is an economic relationship between two organizations regarding the sale of goods with a deferred payment. This deferral is issued by a promissory note - a commercial bill.

In the transaction under consideration, the buyer (borrower), having received the goods from the seller (creditor), issues a promissory note and transfers it to the latter. The object of lending in this operation is a product sold with a deferred payment.

A monetary loan, for example, a bank or state loan, involves the preliminary accumulation of temporarily free funds, and not only the resources of the creditor can act as such. When realizing a commercial loan, the supplier's resources are attracted in the form of specific inventory items and the accumulation of temporarily free cash does not occur.

A commercial loan is interconnected with a bank loan and can be transformed into the latter. This is observed when the owner of a commercial bill (bill holder), without waiting for the due date for receiving payment from the debtor (bill drawer), takes into account the bill in the bank. Thus, the bank, buying this promissory note, provides credit to the drawer.

A commercial loan is beneficial to both the lender (seller) and the borrower (buyer).

For the supplier enterprise, this form is convenient in that the accelerated sale of goods is carried out. In addition, such a transaction brings income to the creditor in the form of interest for deferred payment, which is included in the cost of goods sold and fixed in the bill.

The interest of the buyer (borrower) in commercial lending is obvious. The buyer has the opportunity to pay the cost of the goods after the period agreed between the parties, for one reason or another, without having funds at the moment. Often a commercial loan is a more affordable way for a borrower to meet the need for funds than a bank loan. Obtaining a bank loan can be difficult if there are no free credit resources at one time or another, or if the borrower, according to the bank, is not creditworthy.

An interstate loan is an economic relationship that develops between two countries regarding the movement of temporarily free funds.

Participants (subjects) of credit relations are banks of various countries: commercial or central state, international monetary and credit organizations (IMF, IBRD), as well as individual organizations engaged in export-import activities.

Interstate credit can act in monetary and commodity forms, as well as credit in the internal economic turnover of the country.