The essence of the loan: the origin, form, concept of the term
Human relations of a commercial nature,including barter, have been impregnated with lending from time immemorial. Always the material goods of different definitions, classifications and subjective value, some had more than others. And there was always a need for borrowing the missing goods. In other words, the demand for credit is due to property stratification. But the economic essence of the loan as such arose with a clear definition of the terms of such borrowing, known today under the principles of lending. Among them are pay, return, and urgency. These principles are expressed in specific conditions for the use of borrowed property.
Traditionally, the essence of the loan, the reasons for itappearance, demand and dynamic development is associated with the coincidence of economic interests. Namely, the need for some in money or specific values and an excess of those for others. At the same time, the possibility of lending is not feasible without the readiness of these others to provide excess of their values for temporary paid use. And without the readiness of the subjects of credit relations (the creditor and the debtor) to enter into economic relations, fixing them with the contract. The economic essence of a loan determines its functions, a global and subjective direction. Lending allows:
Separate the original framework and eliminaterestrictions on obstacles to full and rapid development of production. Development and production require, as a rule, considerable financial investments at the initial stages.
To redistribute values, justifying the essence of the loan, its necessity and popularity.
Use values more efficiently.
Ensure the proper continuity of production and reproduction processes.
Promote cost savings.
Stimulate profitability and production.
Accelerate the useful movement and circulation of monetary and value flows.
To carry out profitable operations on a national or private scale.
The functions and possibilities of lending are determined byessence and forms of credit, their fullness, relevance. Crediting is of the following types, due to its volume and purpose, subjects and type of values, the purpose:
Commercial. It is possible not only credit, as such, but also a delay in payment of the value of the received goods.
Bank. It is this type that reflects the clear essence of the loan. In the role of creditor or owner of values is a financial institution. And the values transferred to use, in turn, are borrowed from other persons on the same actual principles of recoverability and payment (deposits). In the role of the object - banknotes in cash or non-cash form. This type is quite common, covers both the townsfolk, and the state as a whole, and production organizations. Bank loans can be for short (hourly) and long periods.
Inter-farm. Subjects - legal structures, organizations, the object is, as a rule, not finances in monetary terms, but securities, rights.
Mortgage. The mortgage loan is allocated to a separate type of loan in terms of specifics. Namely due to the clearly limited possible collateral or collateral - only real estate.
Consumer. Also quite common and relevant type of credit relations between individuals or organizations. It differs from a wide range of possible conditions from formal, symbolic fees or gratuitous borrowing to significant, unlimited interests or commissions.
In general, the essence of the loan is determined by its immediate purpose, quite material - the receipt of profits from the availability of unused self-values, money.