What is a loan? Detailed analysis

The article tells about what a loan is, why it is taken, and understands the topic of popular in our time microcredit organizations.

Ancient times

If you consider such a topic as loans and taking money in debt at interest, then such obligation relationships have existed since time immemorial. Gradually, with the development of society, many moral and social aspects appeared in it, which are inherent in intelligent beings. For example, patriotism, gratuitous help to relatives, some moral obligations and so on.

With the development of commodity-money relations, well-off people also appeared who could give to another person material values with the condition of mandatory return in a larger amount, usually depending on the time for which the debt is taken. Such people were called usurers, and naturally, they did it not without benefit - it's all a matter of interest, or property, on the security of which the loan was taken. Often, usurers, seeing a desperate situation, intentionally appointed unprofitable conditions for the borrower, so in society they were always treated negatively by and large.

Banks

Much later, the first banks appeared that concluded a loan agreement and differed from usurers with clear conditions that were controlled by the authorities, as well as the possibility of a gradual increase in deposits or other banking operations.

In our time practically in all developed countries of the world, banks offer various credit services, and this has long become common: despite high interest rates, people still use them because of the convenience of instant receipt of funds. Also recently, organizations that issue instant loans have become popular. So what is a loan? What is its difference from a loan and how can it be obtained without leaving your home, for example, a bank card? In this we will understand.

Definition

To begin with, we will analyze the terminology. A loan is a certain type of obligation relations, a contract according to which one party transfers another property or temporary management of any tangible assets - money, property, with the condition of mandatory return within the specified period. Such a contract can be either free or paid, and usually for such a service interest is charged. For example, if a person takes a loan in the amount of 1000 rubles, then he should return 1500 rubles. So now we know what a loan is.

Essence of the question

But if there are loans, why take loans? The whole point is that obtaining a loan from a bank can take a lot of time and requires numerous income statements, so that a bank employee who issues a loan is sure of his return. In addition, according to the current legislation, the interest rate and the loan terms can not exceed specially established norms.

Well, the loan is applied when money is urgently needed. Typically, such organizations issue them, if not immediately, then within a few hours or days. And most do not even require information on income and other documents. But for such convenience and speed it is necessary to pay high percentages and rigid terms. So we sorted out what a loan is.

By the way, several large scandals are connected with such microcredit institutions, because the conditions under which they issue loans are very different from banking ones for the worst for the client side. But why do people still use their services?

It's all about the high approval rate of applications. Large banks have at their disposal a base of debtors and simply individuals who have or have once issued loans, and depending on the credit history make a decision - to cooperate with the client further or not. Simply put, an unemployed person with outstanding loans or other debts will almost certainly be denied. And organizations that issue microcredits will approve the application and enter into a loan agreement. Naturally, at a loss they do not work, and when accumulating debt they simply sell debt to collection agencies.

Bank card

With the development of the Internet and digital technologies, there have recently appeared organizations that provide a term loan for a credit card. For convenience, all operations are performed through the Network, by filling out electronic forms on the organization's website. It details the conditions of receipt, the interest rate, the terms of return, the accrual of penalties for delay and so on.

They differ in terms of consideration and documents that are required. Usually, you need to provide your passport details, get a scan of some documents and contact details to receive funds. If the application is approved with the client, the operator is contacted to clarify the details, and the person receives a loan for the card. But at its registration it is necessary to be very attentive and in detail to study all normative documents and conditions in order to avoid problems in the future.