Loans are a very wide range of economic relations between individuals, organizations, and States.
The essence of the loan http://usapaydayloans.info/reviews/cashusa-review-online-payday-loans/ consists in the transfer by one person to another of any material values, in monetary or commodity form. These borrowed assets are subject to return on the terms agreed between the lender and the borrower.
Loan, credit, and loan are types of property binding relationships. In everyday life, these words are used as synonyms, but the current Russian legislation makes a difference between a loan and a loan, and especially distinguishes loans from rent and installments. Loan and lease?
Here, too, there are some common points. You can lend money or material assets. But the money is not rented.
To borrow a basket of potatoes of 20 kg with the condition to return the same amount of product of the same quality is a loan.
Borrow the basket itself, in which they carry potatoes, with the condition to return the same basket-rent.
The terms of the loan almost always imply a fee for using borrowed funds.
The loan can be free of charge, without interest and remuneration, with the return of only the transferred asset.
However, interest accrual is not the only difference between loans and loans, an interest-free loan remains a loan, and a loan with interest does not change its essence either.
All capable persons can issue and accept loans: citizens, organizations, States, etc.
The legal definition of loans is given by the 1st paragraph, 42 of the Civil code.
See also:
Microloans refinancing
Types of loan
Types and forms of loans are extremely diverse, their specific terms are determined by agreements between the lender and borrowers, and the legislation regulates only the basic concepts. It would be impossible to consider in detail all possible types of loans within one material. We will only give a classification of common loans by the main, defining criteria.
Loans between individuals.
What is colloquially called «borrow». These loans differ in the type of transferable asset:
cash loan;
non-monetary loans, i.e. with the transfer of other property.
The cost of loans differs by:
gratuitous (interest-free) loans-this includes all non-monetary loans and loans for no more than 50 minimum s/p.
paid loans-for which an interest or fixed fee is assigned.
According to the method of registration are allocated:
loans with a written agreement;
oral loan agreements.
Loans issued or taken out by legal entities.
These transactions are always documented, but in other respects they are more diverse than loans from individuals.:
banking, here the lender is defined in the name;
guaranteed-secured by collateral or other means;
targeted, i.e. issued for pre-determined expenses;
mortgage – for buying a home;
consumer – for the current needs of the borrower;
bonds-issued as a sale of bonds;
optional – giving the lender the right to choose the loan repayment option;
commercial-issued for business development;
international-borrowing between representatives of different States.