Human relations of a commercial nature, including barter, have been saturated with loans from time immemorial. There were always more material goods of different definitions, classifications, and subjective values than others. And there has always been a need to borrow missing goods. In other words, the demand for credit is due to property stratification. But the economic nature of credit as such arose with a clear definition of the conditions for such borrowing, known today under the principles of lending. Among which are paid, and repayment, and urgency. These principles are expressed in the specific conditions for the use of borrowed property.
Traditionally, the nature of the loan, the reasons for its appearance, demand and dynamic development are associated with the coincidence of economic interests. Namely, the need of some for money or specific values and the excess of others. Moreover, the possibility of lending is not feasible without the willingness of these others to provide an excess of their valuables for temporary paid use. And without the willingness of the subjects of credit relations (creditor and debtor) to enter into economic relations, fixing them with an agreement. The economic nature of credit determines its functions, global and subjective orientation. Lending allows you to:
To expand the original framework and remove the limitations of the obstacles for the full and rapid development of production. Development and production require, as a rule, considerable financial investments at the initial stages.
Redistribute values, justifying the essence of the loan, its necessity and popularity.
Use values more efficiently.
Ensure proper continuity of production and reproduction processes.
Contribute to cost savings.
Stimulate profitability and production.
Accelerate the useful movement and circulation of cash and value flows.
Concentrate capital.
Carry out profitable operations on a state or private scale.
Functions and possibilities of lending determine the nature and forms of credit, their fullness, relevance. Lending is of the following types, due to its volume and purpose, subjects and type of values, purpose:
Commercial. It is possible not only credit, as such, but also a delay in payment of the cost of the goods received.
Bank. This type reflects the clear essence of the loan. A lender or owner of values is a financial institution. Moreover, the values transferred to use, in turn, are borrowed from other persons on the same relevant principles of repayment and chargeability (deposits). In the role of the object - banknotes in cash or non-cash. This type is quite common, it covers the inhabitants, and the state as a whole, and production organizations. Bank loans can be for short (hourly) and long periods.
State.
Inter-farm. Subjects - legal structures, organizations, the object is, as a rule, not finance in monetary terms, but securities, rights.
International.
Mortgage Mortgage loan is allocated in a separate type of loan specifics. Namely, due to the clearly limited possible security or collateral - exclusively real estate.
Consumer. Also a fairly common and relevant type of credit relationship between individuals or organizations. It differs in a wide range of possible conditions from a formal, symbolic fee or gratuitous borrowing to significant, unlimited percentages or commissions.
On the whole, the essence of the loan is determined by its immediate purpose, which is material enough - by making a profit from the availability of unused values and cash.