The form of loans of commercial banks
Based on the purpose of use of borrowed money have 2 forms of loans are consumer lending and lending to business.
Consumer loans:
The purpose of this loan is that borrowers have to use borrowed money to consumers, stores of fixed assets aims to serve personal interests. When making this loan, credit officers were right to the source of the money used to repay the Bank key is the personal income of the loan. This loan forms only appeared in the early TWENTIETH century, when the commodity economy development and the economic crisis occurred, prompting the world capitalist production had to leave how many goods when that consumer demand is there but no real bridge. The most common form of this type is the installment loan, a type has been applied very successfully in the developed countries. Banks can lend to their servants stores automotive, motorbikes, installment. In the Western countries and the United States, a person can buy a car to get around or over very easily while his account does not need to be 100% or 50% of the value of that car. This has helped for the consumption of the goods becomes more favorable, so it motivates the development production.
Lending to business:
The purpose of this Bank is to loan the loan business to service their business activities, in order to expand production or meet a particular demand on the money side of the business. Based on the characteristics of each of the branches that the Bank will set the conditions for the loan, the lending method, the manner of repayment based on the amount of sales of the business. Can split this according to type of loan production business and commercial lending or lending under the economic profession: loan industry, agriculture, service sector lending.
Based on loan term has 2 forms is short term loan and medium-and long-term loans.
Short term loan:
This loan in order to fund the asset or short-term capital needs of the State, enterprises and households.
Medium and long term loans:
Businesses need medium and long term loans to buy equipment, construction, technical improvements, buy technology with the rapid development of science and technology, in order to survive and grow, medium and long term capital needs.
The State of medium and long term loans to invest in development.
The Bank bought the medium and long term bonds of enterprises to finance the establishment of fixed assets. Duration and the possibility of converting of bonds, bond interest, corporate financial situation, future plans are calculated when the Bank bought the bonds.
When customers are shopping plan, construction of fixed assets, in order to implement certain projects, can apply for bank loans. One of the Bank's loan requirements is the borrower must build project, reflected the purpose, planning and investment, as well as the process of project implementation (business). Project appraisal is the condition to the Bank decided to loan capital part and determine the ability of the business to pay Republic
Based on the guarantee of the loan has 2 forms of loans are secured loans and unsecured loans.
Secured loans:
These are loans that besides for customer loans, the Bank also holds the borrower's property for the purpose of handling the property to recover the loans when borrowers credit contract violations. The process of supplying the capital of commercial banks, not to mention the form would both increase the volume of money in the economy, increase the volume of goods on the market. Also when doing the lending bank does not directly manage their capital so there are a lot of risks occur, the risk of not recovering enough loans is very high so the Bank when lenders usually require the borrower to have the secured property for the loan.
The unsecured loans:
Is the loan that the Bank does not hold assets of borrowers to handle in order to recover the debt, but instead is a different binding conditions when signing the credit contract. These conditions may be: borrowers are not dealing with any other Bank, the business activities of borrowers must be bank managers. So the new management of the Bank was the financial situation of the borrower.
Usually only the customers who have longtime ties to the Bank or the client, or the client that a participating bank, which is on the new loan, then there is no guarantee.
Based in the form loans form there are two forms of lending is the direct lending and indirect lending.
Direct lending:
The majority of the Bank's lending is for direct loans. This is the loans when customers directly to the Bank and ask for a loan. Direct bank transfer of money for customers to use on the basis of the conditions that both parties to the agreement.
When customers have collateral, have high credibility without having to through intermediaries, they often direct bank loans.
Indirect lending
This form of lending through intermediary organizations. Lending through Bank, teams, associations, groups, such as farmers, producer groups, veterans, women ... These organizations often link the members under a private purpose, but mainly are supporting each other, protect the rights of each Member. So the development of the economy, the wealthy, the poor are always simple poverty mediators are very interested.
Consumer loans:
The purpose of this loan is that borrowers have to use borrowed money to consumers, stores of fixed assets aims to serve personal interests. When making this loan, credit officers were right to the source of the money used to repay the Bank key is the personal income of the loan. This loan forms only appeared in the early TWENTIETH century, when the commodity economy development and the economic crisis occurred, prompting the world capitalist production had to leave how many goods when that consumer demand is there but no real bridge. The most common form of this type is the installment loan, a type has been applied very successfully in the developed countries. Banks can lend to their servants stores automotive, motorbikes, installment. In the Western countries and the United States, a person can buy a car to get around or over very easily while his account does not need to be 100% or 50% of the value of that car. This has helped for the consumption of the goods becomes more favorable, so it motivates the development production.
Lending to business:
The purpose of this Bank is to loan the loan business to service their business activities, in order to expand production or meet a particular demand on the money side of the business. Based on the characteristics of each of the branches that the Bank will set the conditions for the loan, the lending method, the manner of repayment based on the amount of sales of the business. Can split this according to type of loan production business and commercial lending or lending under the economic profession: loan industry, agriculture, service sector lending.
Based on loan term has 2 forms is short term loan and medium-and long-term loans.
Short term loan:
This loan in order to fund the asset or short-term capital needs of the State, enterprises and households.
Medium and long term loans:
Businesses need medium and long term loans to buy equipment, construction, technical improvements, buy technology with the rapid development of science and technology, in order to survive and grow, medium and long term capital needs.
The State of medium and long term loans to invest in development.
The Bank bought the medium and long term bonds of enterprises to finance the establishment of fixed assets. Duration and the possibility of converting of bonds, bond interest, corporate financial situation, future plans are calculated when the Bank bought the bonds.
When customers are shopping plan, construction of fixed assets, in order to implement certain projects, can apply for bank loans. One of the Bank's loan requirements is the borrower must build project, reflected the purpose, planning and investment, as well as the process of project implementation (business). Project appraisal is the condition to the Bank decided to loan capital part and determine the ability of the business to pay Republic
Based on the guarantee of the loan has 2 forms of loans are secured loans and unsecured loans.
Secured loans:
These are loans that besides for customer loans, the Bank also holds the borrower's property for the purpose of handling the property to recover the loans when borrowers credit contract violations. The process of supplying the capital of commercial banks, not to mention the form would both increase the volume of money in the economy, increase the volume of goods on the market. Also when doing the lending bank does not directly manage their capital so there are a lot of risks occur, the risk of not recovering enough loans is very high so the Bank when lenders usually require the borrower to have the secured property for the loan.
The unsecured loans:
Is the loan that the Bank does not hold assets of borrowers to handle in order to recover the debt, but instead is a different binding conditions when signing the credit contract. These conditions may be: borrowers are not dealing with any other Bank, the business activities of borrowers must be bank managers. So the new management of the Bank was the financial situation of the borrower.
Usually only the customers who have longtime ties to the Bank or the client, or the client that a participating bank, which is on the new loan, then there is no guarantee.
Based in the form loans form there are two forms of lending is the direct lending and indirect lending.
Direct lending:
The majority of the Bank's lending is for direct loans. This is the loans when customers directly to the Bank and ask for a loan. Direct bank transfer of money for customers to use on the basis of the conditions that both parties to the agreement.
When customers have collateral, have high credibility without having to through intermediaries, they often direct bank loans.
Indirect lending
This form of lending through intermediary organizations. Lending through Bank, teams, associations, groups, such as farmers, producer groups, veterans, women ... These organizations often link the members under a private purpose, but mainly are supporting each other, protect the rights of each Member. So the development of the economy, the wealthy, the poor are always simple poverty mediators are very interested.
