lending mechanism. Lending facility using a credit line Credit facility

credit mechanism- this is a set of forms, methods, objects and other tools with the help of which the functions of credit are implemented in practice. Elements of the credit mechanism.

1. Subjects of the loan. Subjects of credit relations in the field of bank credit are economic agencies, the population, the state and the banks themselves. As you know, in a credit transaction, the subjects of credit relations always act as both a lender and a borrower. Lenders are persons (legal and physical) who have provided their temporarily free funds at the disposal of the borrower for a certain period. The borrower is a party to credit relations that receives funds for use (on a loan) and is obliged to return them within the prescribed period. As for a bank loan, the subjects of credit transactions here necessarily act in two persons, i.e., as a lender and a borrower. This is due to the fact that banks work mainly on borrowed funds and, therefore, in relation to economic agencies, the population, the state - the owners of these funds placed on bank accounts, act as borrowers. By redistributing their own resources to those who need them, banks act as creditors. The same is observed with regard to the other side of credit transactions - the population, the economy, the state; depositing funds in soybean bank accounts, they act as creditors, and when asking for a loan, they turn into borrowers.

2. Objects of credit.

Credit objects This is what the loan is for. Loans can be directed to:

For the formation of working capital /short-term/;

For the formation of fixed assets /medium- and long-term/.

Working capital is the most common object of lending. They consist of several elements:

1. stocks of consumer goods;

2. Goods shipped for which the due date is not
came;

3. cash;

4. accounts receivable and other assets.
It is forbidden to give loans for the following purposes:

1. covering losses of the borrower's economic activity;

2. formation and increase in the authorized capital of commercial banks and other economic units;

3. acquisition of securities of any enterprises.

The formation of working capital can be carried out using the following sources:

Founders funds;

Charitable contributions;

Governmental support;

3. Delivery methods.

By methods grants differ loans issued:

On a one-time basis;

In accordance with the open credit line;

Loan guarantee.

4. Separation of funds for own and
attracted.

5. Credit planning.

6. Economic control of banks over the issuance and
loan repayment.

15. The main features of the modern system of bank lending

Lending to enterprises and the population refers to the traditional types of banking services. It is no coincidence that a bank is called a credit enterprise (institution, institution). The largest part of the banks' assets is still placed in lending operations.

Bank loans granted to borrowers can be classified according to various criteria. One of them is who receives them, what is the nature of the borrower. Depending on the recipient, the borrowers are: state-owned enterprises and organizations; cooperatives; tenants, citizens engaged in individual labor activity; other banks; other farms, including authorities (local, city councils, etc.), joint ventures, international associations and organizations.

In the modern monetary economy, interbank loans are developing to a certain extent. On average, each bank accounts for approximately 3% of all its placed funds; in general, for commercial and cooperative banks of the country, interbank loans amounted to 8% of all their credit investments. Depending on the term, bank loans are divided into: short-term; long-term; medium-term. Short-term loans are loans with a maturity of less than one year. They are provided for inventory items, costs, settlement values, current payment needs, distribution operations. Long-term loans include loans with terms longer than 3 years. These loans serve the need for funds necessary for the formation of fixed assets, working capital, financial assets. Medium-term loans are loans with a maturity of 1 to 3 years. These loans serve needs similar to long-term loans. The current structure of credit investments is dominated by short-term loans.

The predominance of short-term loans in the total mass of credit investments at the present stage is associated with the orientation of commercial banks towards making a profit and placing funds within a short period of time due to economic instability in the country and a high inflationary process. In general, long-term and medium-term lending has not yet been widely developed. Currently, approximately 40% of all commercial and cooperative banks issue long-term loans.

Features of the transition to a modern credit system. The modern system of lending to enterprises, organizations, and the population is no longer distinguished by the directiveness that was typical until recently; it is a more liberal scheme, in which the client is not assigned to the bank, but chooses the credit institution whose services he would like to use. The client is also granted the right to open loan accounts not in one, but in several banks. The ongoing liberalization of the lending scheme, no doubt, expands the client's opportunities, including in obtaining a loan, creates conditions for the development of interbank competition. In general terms, the existing credit system is an updated system, in which, however, both old and new forms of credit still coexist. In a certain sense, the current credit system is a transitional system, where the remnants of the old scheme are preserved, current and new elements are introduced that are more in line with market relations. So, in modern practice, on the one hand, you can find enterprises that use loans for traditional lending objects, draw up loans in accordance with the procedure previously established by the instructions of the State Bank. A large proportion of enterprises, on the other hand, are no longer satisfied with a directed lending scheme; commercial banks provide them with loans on new terms, in an unconventional form. The transitional lending system, in essence, reproduces the features of the transition period from centralization to decentralization of economic management, lays the foundation for the development of entrepreneurship both in the economy and in the banking sector.

The new qualities of the credit mechanism, however, continue to be held back. The factors hindering the development of this process, as before, include both ignorance of new forms, the eternal attachment of still non-commercial banks to old traditional forms, as well as their poor technical equipment, lack of experience in managing economic risk, and, in general, still weak commerce in national economy. The transitional credit scheme for enterprises and organizations, reflecting the contradictions of the transition period, nevertheless retains one important quality - it is built on the principle of a unified credit scheme. As you know, for many years, Soviet practice professed the need for a significant differentiation of the lending system, depending on the industry feature. The State Bank developed separate instructions for lending to industrial enterprises (seasonal and non-seasonal industries separately), collective farms, state farms, trade and supply and sales organizations. Each of these lending systems contained significant differences from each other. Gradually, with all the differences in the instructions on lending to a number of sectors of the national economy that continued to operate, there was a convergence of their concept. Of course, the objects of lending, the forms of loan accounts, the system of loan repayment continued to differ from each other, but the general line for unification was marked quite clearly. Within the framework of a single mechanism, all industrial enterprises (except for enterprises of the agro-industrial complex), as well as transport and communication enterprises, procurement organizations, began to be credited, the instruction on lending to non-seasonal industries on an equity basis disappeared; collective farms and state farms began to receive loans according to a single scheme.

Credit process

	Name of the stage of the credit process
	Planning	The first stage of the organization of the credit process is the development and formation of credit policy. The credit policy also includes the determination of the interest rate and the term of the loan. The loan term is determined by the bank. Changing the loan term can be done in certain cases, if conditions allow. The loan rate is determined by the bank and is not subject to discussion with the recipient of the loan. Within the framework of the credit policy, the procedures for making a decision on a loan, the basic rules for processing a loan transaction, and legal support for a loan should also be determined.
	Providing	This is a direct credit service to clients, which consists in the analysis of credit projects, creditworthiness assessment, conclusion of a loan agreement, planning and issuance of a loan.
	Usage	The third stage of the credit process is the control over the intended use of the credit. The main goal of this stage of the credit process is to ensure regular payment of interest on the debt and repayment of the loan. Also within the framework of this stage, control over compliance with the terms of the credit transaction is carried out.
	Loan repayment	The fourth stage of the credit process is the return of the loaned value. The return of loans means the return of funds to the bank and the payment of the corresponding amount of interest.

Formally, the credit process should originate from the moment the loan is issued. However, according to the modern mechanism of lending, up to this point and after it, a significant amount of work is carried out by the creditor bank and the borrower.

Stages of the lending mechanism

The lending mechanism includes the work of the bank to provide and repay the loan, which can be conditionally divided into four stages in accordance with the stages of the lending process:

Stages of the lending mechanism

At the first stage of the implementation of the lending mechanism the client submits to the bank an application for issuing a loan, which indicates the purpose of the loan, the requested amount and term of the loan, a brief description of the event being financed, the security of the loan and the mechanism for its repayment. A number of documents are attached to the application. For example, for legal entities the most typical:

• title documents of the client (constituent documents, registration certificates, copies of passports, etc.)
• feasibility study of the financed event (business plan, etc.)
• copies of contracts and agreements related to the credited event;
• financial statements of the client for the last year and the reporting period;
• obligations to ensure the repayment of the loan.

For individuals, this is a passport, a second identity document, a certificate of employment, a certificate of income, a borrower's questionnaire, etc.

Documents are evaluated according to 5 criteria.

Then, within the framework of this stage, the lending mechanism implies the need to determine the creditworthiness of the borrower.

Banks have different approaches to assessing the creditworthiness of legal entities and individuals, while legal entities are differentiated into large and medium-sized, small enterprises and micro-enterprises. This determines the combination of credit assessment methods used in the lending mechanism.

The creditworthiness of large and medium-sized enterprises is assessed on the basis of reporting data, credit application, credit history, information about the borrower, his management. The system of financial ratios, analysis of cash flow, business risk and management are used for evaluation.

Mandatory coefficients for assessing the creditworthiness of enterprises

In addition to these ratios, cash flow analysis and business risk assessment are used.

For small and micro-enterprises, the use of these methods is difficult due to the scale of their activities, the state of accounting and the depth of reporting, often there are no audit results. As a result, the assessment of creditworthiness is based on the knowledge of the bank's employees of this business, which involves a personal interview with the head of the enterprise, regular visits to the enterprise.

The main goal is to find out the purpose of obtaining a loan, the source and repayment period.

The creditworthiness of small and micro enterprises is assessed according to the following system:

Assessment of the creditworthiness of small enterprises and micro-enterprises

The creditworthiness of an individual is assessed according to the following indicators:

• the ratio of the requested loan to his personal income
• general assessment of the financial position of the borrower and the value of his property
• family composition
• personal characteristics
• study of credit history

Methods for assessing the creditworthiness of an individual

When scoring, a system of criteria and corresponding indicators of the borrower's ability to repay the principal and interest to the bank is used. For example, on the basis of individual indicators, the significance of which is determined through the differentiation of the level of the maximum score, approximately the following model can be used

Scoring system of indicators

Evaluation criterion	Number of points received	Maximum score for each criterion
Client profession
Family status
The duration of the bank account
Average account balance
Place of receipt of salary (whether the salary is transferred to the bank account)
Loan dynamics
Credit term
Having a debit balance on a current account
Use of a checkbook

Depending on the points scored, the client's class is determined in terms of creditworthiness.

If the indicator is recognized by the bank as sufficient, then an assessment is made on additional solvency factors. Solvency indicators are based on data on the income of an individual and the degree of risk of losing this income.

If a positive decision is made the next step in the lending mechanism is the conclusion of a loan agreement and the issuance of a loan.

A loan agreement in the form of a loan agreement acts as the main instrument for securing loan repayment for banks. This is due to the fact that the loan agreement concluded between the bank and the borrower determines the legal and economic conditions of the loan transaction and is a legal document, all points of which are binding on the parties that have concluded it. The real obligations of the client to repay the loan arise only after receiving the loan, but the signing of the contract is carried out earlier.

A loan agreement is a legal guarantee for the repayment of a loan.

At the same time, one cannot rely only on the legal side in securing the repayment of a loan. If the borrower turns out to be insolvent, then no legal guarantees will be able to return the issued resources to the bank. At best, this process will stretch for a long period, which leads to the loss of part of the bank's profit from a particular transaction. Another feature of the loan agreement follows from the fact that the bank's credit operations are of a fiduciary nature. The positive decision of the bank on the client's request for a loan is based on a study of the creditworthiness of a particular borrower.

As part of the loan agreement, the bank uses legal instruments to protect against credit risk associated with a decrease in the creditworthiness of the borrower. Various kinds of legal guarantees should be fixed in the relevant clauses of the loan agreement.

The credit agreement assumes a certain confidence of the creditor that the debtor will fulfill all the obligations associated with the concluded transaction.

Issuance of a loan is carried out in one of three ways, which provides for the mechanism of lending in banks.

The third stage in the lending mechanism constitutes security for the payment of interest on the loan, repayment of the principal loan and control over the execution of the loan agreement. In modern practice, the following options for repaying the principal and interest on a loan are distinguished:

1. periodic repayment of the loan by covering urgent obligations;
2. loan repayment as the need for borrowed capital decreases to form own funds by direct debits from the borrower's current account;
3. transfer of part of the proceeds from sales to repay the loan by indirect write-offs without crediting to the borrower's current account;
4. regular repayment of the loan by planned payments fixed in the loan agreement;
5. deferment of repayment of the loan or covering it with other obligations;
6. write-off of overdue debt in accordance with the options provided for by the bank's credit policy.

It should be noted that the first three options are typical for lending to legal entities, the fourth option is used in the framework of lending to individuals. The fifth and sixth options correspond to the practice of working with problem loans. At the same time, regardless of the form of repayment of the loan, the terms of repayment of the loan taken by borrowers are specified in the form of urgent obligations in the numbers in which the need for a loan is calculated, in accordance with the provided reduction in loan debt, which takes into account the actual amount at the beginning of the period.

The fourth stage in the lending mechanism- This is a procedure for repaying a loan and interest on the principal debt, which can be implemented in banks in accordance with several forms.

Forms of loan repayment according to the lending mechanism

	Loan repayment form	Note
	Scheduled repayment by the borrower of the principal amount of the loan and interest on the debt through regular payments in accordance with the procedure provided for in the loan agreement.	Direct crediting of funds to a loan account can occur either by direct crediting of cash at the bank's operating cash desks, or by bank transfer or electronic transfer initiated by the borrower himself.
	Regular debiting by the creditor bank of funds from the borrower's current account opened with the same bank on the basis of an appropriate instruction issued by the borrower.	With this form, a regular write-off occurs if there are funds on the current account on the calendar date specified in the payment order for regular transfers to the loan account. In the absence of funds on the specified date, the payment is automatically placed in the queue until the required amount appears on the borrower's current account.
	Independent transfer by the creditor bank from the current account to the loan account of the free balance of funds on the current account, which remains after early write-offs.	With this form, the write-offs are not fixed and reduce the principal amount unevenly, which corresponds to the repayment of the loan as the need for borrowed capital decreases. This form is most typical for legal entities engaged in trade and commercial activities.
	Collection in an indisputable manner from the borrower's account.	It is implemented by collecting debt on loan payments in amounts corresponding to the amounts of overdue payments. This form is used for problem loans.
	Bank advance payment.	It is used by the bank in case of unsecured debt on the issued loan. This form can also be used in cases where the borrower ceases to comply with the terms of the loan agreement, if such a procedure for early collection of the principal amount of the debt is provided for in the loan agreement.

If, as part of monitoring the execution of the loan agreement, the creditor bank establishes that the borrower has no real opportunities to repay the loan and interest for its use, then in accordance with the loan agreement, the bank may claim for collection the amount of the entire outstanding loan and interest in an indisputable manner from the guarantor's account or orders without further notice. In addition, it is possible to ensure the interests of the bank, as a creditor, by satisfying them from the amount of property pledged by the borrower in accordance with the terms of the loan agreement.

The Bank exercises systematic control over the fulfillment of the terms of loan agreements, the targeted use by borrowers of loans received. In order to timely and fully return the loaned value, the lending mechanism assumes the continuity of such control and maintaining close contact with the borrower during the entire period of the loan.

Loan repayment according to the lending mechanism

After full compliance with the terms of the loan agreement and payment of the debt, the cycle corresponding to the lending mechanism ends with the loan repayment stage. In accordance with the considered loan repayment options corresponding to the third stage, it is possible to classify the loan repayment process depending on the following set of criteria.

1. Full and one-time loan repayment is most typical for small loans, and the transfer of funds by the borrower does not cause him any difficulties.
2. Partial and multiple repayment of a loan is the most common, repayment of credit debt occurs gradually, it takes some time to fully settle with the bank.
3. Systematic loan repayment corresponds to a situation where the borrower has an intensive payment turnover, transfers are made by planned payments or by transferring the free part of the sales proceeds.
4. The occasional repayment of a loan corresponds to targeted loans that are issued for certain needs, using balance-compensation loan accounts.
5. Urgent repayment of a loan can take place with any loans, in accordance with the established loan period from several days to a year or more, when the loan agreement fixes specific conditions for implementing the principle of urgency of lending.
6. In addition, banks can apply such repayment options, formed by modern lending practice, such as deferred, overdue and early repayment of loans.

Regardless of the loan repayment option, the lending mechanism implies the need for regulation and special registration of the fact that the borrower repays the loan taken. This can be a special document that gives grounds for closing the loan, for example, a written order of the borrower, confirmed by a bank statement on the transfers made in favor of repaying the debt, an order of the creditor bank, issued after the expiration of the loan agreement on the basis of the loan paid by the borrower. In disputed cases, arbitration and court decisions are used.

conclusions

The lending mechanism is today the main form of providing funds for a certain percentage charged for the use of funds, one of the main forms. Credit relations are fixed by a loan agreement, which ensures both the rights of the creditor and the borrower.

By allowing banks to accumulate capital, it provides them with the opportunity, through a lending mechanism, to provide loans on the terms of their return after a certain period.

As a continuous process, lending mechanism provides the basic conditions for the functioning of the credit system at the level of the national economy.

Lending mechanism includes all actions for issuing a loan and its subsequent repayment and represents a consistent implementation of the stages of the credit process for planning, granting, using and repaying a loan.

2. Place and role of the credit system. credit mechanism

Credit system - a set of credit relations, forms and methods of lending.

Credit system - a set of banks, other financial institutions that accumulate temporarily free cash and lend it.

Includes banking, consumer, commercial, state, interstate loans with their own forms of relations and methods of lending.

The credit system plays such roles as:

1) maintaining a high rate of national economic accumulation, which is typical for most industrialized countries;

2) solving the problem of selling goods and services on the market;

3) formation of international conditions for reproduction.

The credit system is a set of banking and other credit institutions, legal forms of organization and approaches to the implementation of credit operations.

Depending on the severity of regulation and licensing of banking activities, there are 2 types of organization of credit business:

Specialized credit business, when there is a hard line between the operations of banks and a couple of banks, prohibitions and limits are introduced for banks to carry out quasi-banking operations and the implementation of classic banking functions of the SCFI is not allowed, i.e. attracting funds to settlement accounts and time deposits, providing loans on the terms of payment, urgency and repayment.

Universal credit business.

Depending on the subordination of credit institutions, there are 2 main types of building the banking system:

single-level;

two-level.

Single-level - the predominance of horizontal links between banks, the unification of their operations and functions.

Two-level BS - relationships in 2 planes: horizontally and vertically. Vertically - the Central Bank as a leading, managing center and the rest as grassroots links. Horizontally - relations of equal partnership between various grassroots links. There is a separation of administrative and operational functions related to servicing enterprises. The Central Bank remains a bank in the full sense of the word only for two categories of clients - commercial and specialized banks and government agencies, and for it the functions of the "bank of banks" and the management of the activities of banking institutions in order to regulate control over the functioning of the market of credit and financial services become predominant. The concept of a "bank of banks" in practice means that all cash reserves are concentrated in the Central Bank and their entry into economic circulation occurs through the replenishment of the cash desk of commercial banks through the institutions of the Central Bank. All banks carry out non-cash payments through the Central Bank, and, if necessary, receive loans from the Central Bank. As a result, both cash and non-cash turnovers of funds are concentrated in the Central Bank and its institutions.

The credit system functions through a credit mechanism, which is:

1) a system of links for the accumulation and mobilization of monetary capital between credit institutions and various sectors of the economy;

2) relations associated with the redistribution of monetary capital between the credit institutions themselves within the framework of the current capital market;

3) relations between credit institutions and foreign clients.

The credit mechanism also includes all aspects of the lending, investment, founding, intermediary, redistributive activities of the credit system represented by its institutions.

3. Principles and methods of bank lending

Lending to enterprises and the population refers to the traditional types of banking services. The largest part of the bank's assets is still placed in lending operations. Loan operations are lending to customers and other banks.

Bank lending - when credit and financial organizations, on the basis of a license, transfer money directly to a loan.

Classification of loans and advances:

By maturity, there are:

on-call loans. Loans that do not have a strictly defined term and are subject to repayment within a fixed period after official notification from the lender of the need to repay.

short-term loans (up to 3-6 months). They are mainly used in the field of trade, in the stock market, in the interbank money market.

medium-term (from 3-6 months to a year).

long-term (> 1 year). Serve mainly the movement of fixed assets.

By payment method:

a loan repaid in a lump sum.

installment loan.

According to the method of collecting loan interest:

loans for which interest is charged upon disbursement,

upon its repayment or evenly over the term of the loan.

By availability of collateral:

trust loans.

secured loans, when any property belonging to the borrower on the basis of property rights (real estate, securities) can act as collateral (collateral).

loans secured by financial guarantees from third parties.

agricultural loans (for agricultural enterprises).

commercial (trade, services).

loans to intermediaries on the stock exchange, providing speculative transactions in the stock market.

mortgage loans to property owners.

interbank loans.

According to the intended purpose of the loan can be:

to create production funds;

for temporary repayment of the lack of funds;

loans for consumer purposes.

The main features of the modern structure of lending.

1. The loan is provided depending on the resources attracted by the CB.

2. A large place is occupied by interbank loans. This is the most expensive opportunity for CB to raise funds. CBs use this opportunity only when they are in an extremely difficult financial situation and they need to immediately pay off their creditors.

3. Dependence on mandatory economic standards set by the Central Bank.

4. Contractual system. The CB and the client draw up an agreement that specifies the terms of the loan, the rights and obligations of the parties. In case of non-fulfillment of these obligations, the party shall be liable.

5. The subject is credited. CB analyzes the creditworthiness of each borrower.

6. Transition to such forms of lending that ensure the return of the loan.

7. Now lending methods are the same for all industries.

Lending methods are an integral part of the lending mechanism. The return movement of a loan is determined, firstly, by the receipt or expenditure of valuables, the implementation or reimbursement of costs, current payments, i.e. directly through the process of production and circulation. Secondly, it can be linked to a change in the collateral balance. In accordance with this, lending is distinguished by turnover and by balance, as well as the turnover-balance method. All these features are realized through separate elements of the lending method. These include: the type of loan account, the procedure for issuing a loan, methods of its repayment, the organization of banking control over compliance with the principles of lending.

Currently, an approach based on the creditworthiness of the borrower is used. This approach means shifting the emphasis in the lending mechanism from the choice of an object to the assessment of the subject of a credit transaction. The main part of loans began to be issued on the basis of the balance sheet method. This method is a transitional form that has the features of lending in terms of turnover and balance. The main feature of the practice of this method was the limitation of the range of payments by settlements for inventory items, the introduction of a limitation on the level of debt by the planned size of the loan. CBs began to use balance lending in combination with a fixed lending limit more widely.

Depending on the method of lending, the following types of loan accounts are opened:

simple loan account;

special loan account;

current account

A common feature of these accounts is the accounting for the formation and repayment of debt; the issuance of each new loan and, consequently, the amount of the debt of the borrower is always fixed on the debit, and the repayment of the debt is reflected on the credit. The differences between the types of loan accounts are determined by the peculiarities of lending in terms of balance and turnover.

When lending to a separate loan account, the turnover-balance method is used. The organizational and technical aspects of lending to enterprises are not the same. When opening a simple loan account, the borrower must apply for each loan along with the documents each time. Based on these documents, the CB determines the amount of the loan. For special accounts, you do not need to provide documents each time you receive a loan. The client issues a single obligation to CB (instead of providing a loan to CB in a certain amount and within an agreed period).

When lending on a special and separate account, as well as on a current account, the moment of issuing a loan is not accompanied by a check of the compliance of the loan amount with the accumulated credited inventory items. At the stage of payment for goods, there is no need to submit an application for a loan to the CB, as well as information on the balance of goods being credited. Due to the payment nature of the loan, the special loan account and current account contribute to the timely satisfaction of the needs of enterprises for additional funds. The difference between a simple and a special account is that in the first case, the loan is episodic, and in the second, it is permanent. There is also a difference in repayment: in the first case, funds are transferred from a current account (r / s) to a simple one; in the second, on special accounts, the repayment of the loan can go directly to the loan account, bypassing the settlement account. Enterprises may have several simple loan accounts; special account, as a rule, one. A separate loan account is used only when the company does not have money for a cash account. At the same time, the funds that remain after all payments are used to repay the loan from the enterprise.

A checking account is the most popular form of lending for reliable borrowers. R / s is closed and the company opens one account. The CB automatically repays all expenses of the enterprise, and all profits received from the enterprise to this account repay the loans issued by the bank to this enterprise. Counter current - mutual lending and is concluded for a certain period. The lender always has a supply of credit and uses it as needed. For the borrower, this is a credit reserve and he includes it in his liquid funds.

Certain features of a contract account for CB:

securing a loan with securities;

overdraft lending (at a higher interest rate).

With some similarities, loan accounts and current account between them there are significant differences. The scale of lending on special Loan accounts are much narrower than when lending on a countercorrent basis, a number of transactions are not reflected in them. Another is the amount of funds directed to repay the loan. It is no coincidence that when lending on special loan accounts, the enterprise independently operates its current account. Individual loans on simple loan accounts.

A trust loan is a universal loan; issued to first class borrowers; it is able to meet the most diverse needs of the enterprise, caused by the accumulation of inventories, the lack of free cash to pay salaries, payments to the budget, etc. The term of such a loan is 60-90 days.

A blank loan is a loan provided without collateral with inventory items and securities.

A revolving loan is an auto-revolving loan (debt limit + repayment period). No additional negotiations needed.

Loan scheme

A loan agreement or loan agreement is concluded.

The borrower applies to the CB with an application for a loan. In it, the borrower applies for the purpose for which the loan is taken and what economic effect is expected. The borrower must provide a business plan.

Copies of contracts for the supply of raw materials and materials, for the lease of equipment are provided.

The company must provide a charter, a balance sheet as of the last date, a letter of guarantee. Then a loan agreement is drawn up.

Loan interest accrual:

1. The CB must set such percentages that they are higher than the interest on deposits.

2. CB must consider margin.

3. Depending on the period of use.

4. Depending on the risk of insolvency.

Depending on the security of the loan.

depending on the purpose of the loan.

7. Depending on the rates of other CBs.

8. Depending on inflation and other reasons.

Interest rates can be fixed or floating. Reduced rates may apply.

If the loan is not returned, then the CB takes measures:

may receive insurance compensation;

through the sale of collateral;

may bring a claim to a third party if it is provided for in the cession agreement.

Forms of securing the repayment of the loan

For enterprises that are not classified as first-class borrowers, it becomes necessary to have additional and real guarantees of loan repayment. These include: pledge of property and rights, assignment of claims and rights, transfer of ownership, guarantees and guarantees, insurance.

Pledge and lien. A pledge of a client's property is one of the most common forms of securing the repayment of a bank loan. Pledge of property follows from the pledge obligation issued by the borrower to the creditor and confirming the right of the latter, in case of failure to fulfill the payment obligation, to receive priority satisfaction of claims from the value of the pledged property. To exercise this right, the creditor does not need to bring legal action against the borrower. The amount of collateral is always greater than the loan granted.

In foreign practice, there are the following types of collateral: Pledge of the client's property: inventory items, accounts receivable, securities, bills, deposits, mortgages, mixed; pledge of rights.

Assignment of claims and transfer of ownership. An assignment is a borrower's document in which he assigns a claim as security for the repayment of a loan. The cession agreement provides for the transfer to the CB of the right to receive funds on the assigned claim. The value of the assigned claim must be sufficient to pay off the loan debt. The difference is returned to the assignor. In practice, two types of cession are used: open (the debtor knows about the assignment of the claim) and quiet (does not know). The maximum loan amount is 20.50% of their value.

Positions of work and answers additional questions. 3. The content of the test Before starting the test, the student must familiarize himself with the relevant sections of the course program, guidelines, study the recommended literature. Students must study the requirements of the legislation on state regulation of auditing activities in the Russian Federation, ...

oh; The main properties of regional socio-economic systems have not been fully identified and systematized, the possibilities of their use as criteria for choosing priorities for regional development have not been explored; Methods for evaluating the development strategy of regional economic systems have not been developed, which allow “removing” the limitations of known methods for evaluating local investment projects. ...

Discipline:

Banking

Topic: "The mechanism of lending using a credit line."

1. Lending mechanism using a credit line

A credit line is a type of lending in which a loan is provided to the borrower within predetermined limits as the need for cash arises during the entire term of the contract.

It is issued in large volumes, but the bank does not immediately credit all the funds to the borrower's account, but gives out in parts as needed by the borrower according to the schedule. It comes back the same way. It is issued only to enterprises with a stable financial position.

A credit line is a loan issued in parts when a need arises.

The credit line provides for the establishment of a credit limit by the bank - the amount over which the client cannot take one turn of the loan. Within the same limit, the client can take a loan without additional negotiations and registration. The credit line is opened for a certain period, usually for a year. There are two types of credit line – open (revolving) and closed (non-revolving). An open credit line is automatically renewed when the borrower repays the previously used part (within the period for which it was opened). When opening a non-revolving line of credit, the loan is issued within the established limit, while the repaid part of the loan does not increase the free lending limit.

When opening a credit line, the loan agreement indicates the maximum loan amount, validity period, type, as well as lists the settlement and monetary documents, the payment of which will be made through the use of the credit line or indicates the contract for payment of supplies under which the credit line is opened.

The types of credit lines are overdraft and current account.

Overdraft (from the English. Overdraft - over the account) - a form of short-term loan issued by writing off funds from the client's settlement or current account in excess of the balance on it (issuance of a loan by the bank against the negative balance of the borrower).

Overdraft is provided only to reliable clients. It is repaid by crediting the client's current or settlement account with payments due to him from counterparties, so the loan amount is constantly changing.

Overdraft is a very expensive loan, which is provided only to clients served by this bank. It is non-targeted and can be both secured and unsecured (more often). The provision of an overdraft loan can be stipulated in a bank account agreement (in this case, the right to use it is perpetual), or issued in a separate loan agreement (in which case it is issued for a clearly defined period, usually six months or a year). However, the bank may suspend lending if the financial performance of the borrower deteriorates, as well as set a period during which the recalculation of the account must be repaid. For non-use of an overdraft loan, the bank charges a penalty, because. When calculating the amount of money that it must leave on its correspondent account with the RCC to fulfill its obligations, the bank takes into account the possibility that customers may need overdraft lending, and if the customer does not use the loan, the bank will lose income from the possible investment of these funds.

Current account (from it. Contocorrento - current account) - a single (active - passive) account, which takes into account all the operations of the bank with the client. This account is a combination of loan and current accounts and completely replaces the client's current account (if the latter was, it is closed).

The asset of the checking account records loans granted by the bank to the client and payments from the account on behalf of the client. The liability of the account records the amounts received from customers in the form of deposits, repayment of loans, and proceeds.

The procedure for granting a contractual loan is simplified, because it does not require collateral and is issued for making current payments, and not for any special purpose that needs to be justified and confirmed.

This type of loan is formalized by an agreement on opening a checking account, which indicates:

The allowable amount of the amount that can be borrowed,

The maturity of the loan in whole or in part,

The interest rate that the client will pay for using the loan, as well as the interest rate on deposits that the bank will pay when the client has his own money in the account,

Account maintenance fee.

If the financial situation of the client worsens, the checking account is closed, and if there is doubt about the solvency of the client, the bank requires him (the client) to demand a bill of exchange.

A contract loan differs from an overdraft loan in the following ways:

The loan is issued regularly, not episodically,

The repayment period of a contract loan is longer,

Lending limits may be exceeded by verbal agreement with the bank.

A client who has a checking account opened with a bank can also receive a one-time loan from the same bank. In case of underutilization of the loan, the bank collects from the client the commission specified in the agreement. In our country, the issuance of a contractual loan is suspended, because. according to our laws, all the company's revenue should be concentrated on its current account, which is why we have a more developed overdraft.

The credit line is applied to the bank and the borrower in the following cases.

1. In the presence of a long-term credit relationship with a reliable borrower. At the same time, bank funds become a constant additional source of the borrower's short-term capital, which makes it possible to organize a uniform flow of funds to pay for purchased goods, works, services, save the borrower from the occurrence of excessive accounts payable, regulate his relations with suppliers and generally increase the efficiency of economic activity. The use of a credit line contributes to the expansion of production and sales of the borrower's products, regardless of whether he has sufficient own funds.

2. In the process of organizing interbank lending, a credit line may be opened as part of a general agreement between two banks on the provision of a loan. In this case, the agreement stipulates the limits of a possible loan, without exceeding which the borrowing bank can receive funds at any time through a simple notification of the creditor bank about the need. The general agreement as a form of interbank agreement is usually used in relations between large banks with high creditworthiness. Due to the fact that the creditor bank undertakes to provide the borrower with funds on demand, it is faced with the need to “freeze” part of the resources within the established limit. As a result, there is a diversion of the bank's resources from the operational turnover, as well as a shortfall in income. In addition, with an open line, the lender bank faces increased credit risk, since the analysis of the borrower's creditworthiness is carried out before the decision to conclude a master agreement is made, and the subsequent loan is granted without an ongoing assessment of the financial position of the borrowing bank and its possible deterioration. Therefore, the agreement provides for the right of the lender to suspend lending or early return of previously issued amounts in case of detection of deterioration in the financial condition and solvency of the borrowing bank; if he fails to comply with the terms of the general agreement; violations of economic standards established by the Central Bank of Russia and other signs of an increase in credit risk.

3. In world banking practice, a credit line is used to stimulate the export of goods, works, and services. In this case, the credit line is opened by the bank of the exporting country. The terms of the credit line are negotiated taking into account the characteristics of specific foreign trade contracts, the real financial situation of the borrower-importer, and the availability of high-quality guarantees for the return of payment. The opening of a credit line can be facilitated by the provision of guarantees from the national bank.

From the point of view of the exporter, a credit line opened to the buyer has a number of advantages:

- the sale of the exporter's products on the foreign market is stimulated, which contributes to the development and growth of its production;

There is a guarantee of timely receipt of payments from the buyer to whom the bank has provided a credit line, i.e. protection against the risk of non-payment;

The cash flows of the exporter's working capital are accelerating, which - even with a constant volume of production - is adequate to increase its efficiency and profitability. Restrictions on this process can only be imposed by the volume of the exporter's production capacity and the degree of their workload.

From the point of view of the buyer-importer, opening a credit line can be attractive for the following reasons:

- obtaining a loan occurs as the need for funds arises;

The procedures for granting a loan under the agreement are simplified and, accordingly, the repayment of accounts payable is accelerated;

A guaranteed supply of the necessary raw materials, materials, equipment for the organization of rhythmic production is ensured.

However, it must be borne in mind that the loan interest fixed in the credit line agreement is usually higher than for a conventional loan. This leads to an increase in the costs of the buyer-importer.

4. A credit line may be opened to finance long-term interstate contracts for the supply of equipment. On the basis of these agreements, relevant interbank agreements are concluded, which determine the conditions for opening a credit line, i.e. authorized partner banks are established; the size of the credit limit; intended use of loans; the term of the agreement and the procedure for calculating interest payments; the procedure for repayment of debt on the principal amount of the loan; forms of loan security; payment currency; the procedure for conducting settlement transactions and the recommended forms of non-cash payments (for example, documentary collections or letters of credit).

At the same time, in the process of preparing an interstate agreement and an interbank agreement, the solvency and financial indicators of both partner banks and the end user of the supplied types of equipment or technical documentation for the capital construction of facilities and equipping them with equipment are carefully analyzed. The accelerated formalization of relations can be facilitated by the presence of guarantees from the relevant state authorities, including the federal government of Russia, subjects of the Federation or local governments. In addition to these guarantees, bills of exchange, government securities and other types of debt obligations are usually used to secure obligations under a credit line.

An important element of the organization of a credit line is the solution of the issue of determining the beginning of the crediting period. In banking practice, there are the following options for opening a loan:

1. from the date of payment of funds from letters of credit opened in accordance with the credit line;

2. from the date of submission to the bank of payment and settlement documents confirming the supply of goods, completion of work, provision of services;

3. if there is a power of attorney between partner banks for settlements within the framework of a credit line - s. the moment of receipt from the borrowing bank of an instruction to write off amounts from the credit account within the limit.

Credit line operations can be carried out on a simple or special loan account. A special loan account is used if the bank concentrates all relations with the client, including settlement and cash services, on a single account.

List of used literature

consumer economic lending banking

The mechanism of bank lending to the population operates within the framework of the bank's credit policy, which is the basis of the credit process, and is a combination of the following organizational and economic elements:

1) analysis of the creditworthiness of a potential borrower;

2) organizational and economic methods of issuing and repaying consumer loans;

3) conclusion of a loan agreement;

4) support of consumer credit.

The most important element of the mechanism of lending, of course, is the analysis of creditworthiness.

A qualitative analysis of a number of risk factors allows banks not only to make adequate decisions on loans issued, but also to further minimize direct financial losses from non-repayment of consumer loans.

Among the variety of risk-forming factors, it is advisable to single out macro- and microeconomic ones. A study by economists of macroeconomic factors showed that the leading factor is the general state of the country's economy, as well as the region in which the bank develops its activities. In addition, among them are factors determined by the level of inflation, as well as the rate of GDP growth. An important role is played by the activity of the monetary policy of the Bank of Russia, which, by changing the discount interest rate, largely sets the demand for bank loans. One of the determining risk-forming factors is the level of development of banking competition, characterized by an increase in the concentration of banking capital in certain regions and the development of a range of banking operations and services.

Among microeconomic factors, the level of credit potential of a commercial bank plays an important role, depending on the total amount of funds mobilized in the bank, the structure and stability of deposits, the level of required reserves in the Bank of Russia, the total amount and structure of the bank's liabilities. Factors that have a direct impact on the risk of loan default are the degree of risk of certain types of loans, the quality of the bank's loan portfolio as a whole, the bank's pricing policy and the level of risk management.

In turn, the degree of riskiness of certain types of loans is determined based on their quality. The quality of a particular loan and the bank's loan portfolio as a whole is one of the key credit risk factors.

The set of factors affecting the quality of a separately issued loan includes the following:

Appointment of a loan (for urgent needs in cash, a target loan for the purchase of goods, a car loan, etc.);

Loan size (large, medium, small);

Loan term (short-term, medium-term, long-term);

Repayment procedure (one-time, monthly);

Presence / absence of a credit history;

The degree of awareness of the bank about the client;

Presence / absence of documentary evidence of income by the client;

Methods of security (pledge, guarantees, guarantees);

Other factors.

Risk management (risk regulation) is understood as measures aimed at minimizing the corresponding risk and finding the optimal ratio of profitability and risk, including the assessment, forecast and insurance of the corresponding risk.

To reduce the impact of negative factors, it is necessary to apply a set of credit risk management methods. The main methods of credit risk management include:

Diversification of the portfolio of assets;

Preliminary thorough analysis of the borrower's solvency;

Creation of reserves to cover credit risk;

Requirement of security of loans and their intended use.

However, the specifics of consumer lending do not

the ability to make full use of the above methods, credit risk management except, perhaps, diversification.

Often, a bank needs to issue a very large number of consumer loans in a short time.

The presence of fierce competition and, as a result, the need to provide quality customer service force banks to make decisions on granting a loan as quickly as possible and issue them without any collateral.

The complexity of monitoring already issued consumer loans does not make it possible to individually approach the definition of credit risk in relation to each borrower.

That is why in bank consumer lending there are special approaches to determining the creditworthiness of individuals and to managing risks for them:

Automated scoring system (in points), which allows you to make decisions on granting a loan as quickly as possible, based on existing statistics on customers;

A system of credit bureaus, which makes it possible to collect information about each client for its use in the future when making a decision on granting a loan;

Methods for creating reserves for portfolios of homogeneous loans.

The mechanism of bank consumer lending includes organizational and economic elements that form technologies for providing loans to the population. So, for example, according to the methods of providing consumer loans can be divided into direct and indirect.

An indirect bank loan involves the presence of intermediaries in the credit relations of the bank with the client. These intermediaries are most often retailers. In this case, the loan agreement is concluded between the customer and the store, which subsequently receives a loan from the bank. The prevalence of this form of lending is evidenced, for example, by the fact that currently over 60% of loans issued in the United States for the purchase of a car are an indirect loan.

Direct and indirect bank lending to consumer needs of the population has its advantages and disadvantages. The first thing that distinguishes direct bank lending from indirect is the simplicity of organizing the credit process, which allows you to accurately assess the object of lending, find out the economic feasibility of issuing a loan and organize effective control over its use and repayment. All this, of course, has a positive effect on the credit relations of the bank with the borrower.

On the other hand, from the point of view of the bank, the negative factors associated with direct bank lending usually include a slightly higher level of risk than with indirect bank lending.

Indirect bank lending to consumer needs of the population helps to reduce banking risks (credit, interest, currency, market and others), since loans provided, for example, to legal entities (trading organizations, enterprises that employ borrowers, firms, etc.) allow with a greater degree of reliability and reality, determine the creditworthiness of the borrower (legal entity), the possibility of repaying the loan on time and in full, organize effective control, including at the stage of loan repayment.

Also, in practice, two schemes for providing consumer loans can be distinguished - bilateral and tripartite.

The participants of the bilateral scheme are:

Seller buyer. Here the seller of the goods acts simultaneously as a creditor; at the same time, the option of reselling the consumer's debt to a third party, as a rule, to a commercial bank or a financial company, is not ruled out (that is, there is indirect lending);

Buyer lender. In this case, the lender provides the buyer with an unrelated loan, and the buyer, in turn, repays the seller.

In a tripartite scheme (buyer-seller-creditor), the seller of the goods immediately presents the buyer's (consumer's) invoice for payment to the financial institution (bank, financial company) serving the buyer. This scheme is usually supported by three independent agreements: a purchase and sale agreement between a consumer and a seller, a loan agreement between a consumer and a financial institution, and a participation agreement between a bank and a seller for the transfer to the bank of invoices issued to the consumer at an agreed discount.

By studying the mechanism for granting and repaying consumer loans, we can distinguish various elements by which these loans can be classified.

For the intended purpose consumer loans are divided into targeted and non-targeted.

By directions of use(objects of lending) they can be divided into loans:

For urgent needs, that is, provided in cash;

To purchase goods or pay for services. With such lending, the bank transfers the funds issued to the enterprise, which transfers the goods to the borrower or provides him with a service;

For the purchase of cars. Such a loan is a kind of loan for the purchase of goods, however, it has its own, albeit rather conditional, features. As a rule, the collateral for a car loan is the purchased vehicle; a loan is issued on a medium-term basis for a period of 3-5 years, which is considered sufficient for the borrower to pay off this serious loan. Moreover, after this time, the car is already becoming morally and physically obsolete;

For educational purposes. It is also a type of loan for the purchase of goods and services. Its peculiarity lies in the fact that this loan, as a rule, is issued for a long period - up to 10 years. This period includes the time required for study, as well as for the repayment of debt, starting from the moment of graduation from the educational institution. This loan is secured by the guarantee of parents or interested organizations.

By terms of use loans are on demand and urgent. The latter, in turn, are divided into:

Loans with a maturity of up to 30 days from the date of issuance of the loan;

Short-term loans with a maturity of up to 1 year;

Medium-term loans with maturities from 1 to 3 years;

Long-term loans with maturities over 3 years.

By repayment method There are loans repaid:

At the same time. In consumer lending, such loans are rare. One type of loan repaid at a time is the so-called "bridging loan". This is a loan that is provided to a client who decides to change his home and who first buys a new apartment or house for himself with a loan, and then sells his real estate, and uses the proceeds to pay off the debt at a time;

With installment payment. This type of repayment is more acceptable specifically for consumer lending, since in this case the client can pay for a large purchase as imperceptibly as possible, paying off the loan monthly from wages. Installment loans can be repaid in periodic, equal and uneven payments (increasing or decreasing as the loan is repaid). As a rule, repayment is carried out in equal installments (that is, the amount of the loan to be repaid excluding interest in each period is the same), or annuity payments (when the repayment payment, which includes the loan and interest, is the same). In this case, contributions can be made monthly, quarterly, once every six months or annually (for a long-term loan). However, in practice, monthly repayment of the loan is most common, that is, the repayment period corresponds to the period of receipt of income by the client. It is beneficial for a credit institution that the loan is repaid periodically throughout the entire period of the agreement, as this accelerates the loan turnover and frees up resources, thus increasing liquidity.

According to the revolver scheme. This is a loan in which, having repaid the debt, the borrower can immediately use it again. Such loans are loans provided in the form of credit lines and overdrafts (in consumer lending, as a rule, they are implemented in the form of "credit cards").

Regarding the methods of repaying consumer loans, it should be noted that in recent years, given the active development of consumer lending in Russia, not all banks are able to provide their customers with a sufficient number of operating cash desks to repay loans. As a result, to date, the following non-standard schemes for repaying debts by the population have developed:

1) repayment through the operating cash desks of other banks;

2) repayment through Russian Post offices;

3) repayment through various payment systems.

At the same time, banks that actively sell consumer loans organize the above schemes for their repayment, concluding appropriate agreements with their participants.

Interest collection methods issued consumer loans can be divided into loans, for which interest:

Charged at the time of loan disbursement. This method of paying interest is beneficial to credit institutions, as they receive their income, regardless of whether the loan was repaid or not. In addition, the funds received by credit institutions in the form of interest can be immediately invested, which increases the profitability of operations;

Charged at the end of the loan term. The advantage of this method of paying interest is that during the term of the loan there is no need to recalculate interest depending on the amount and timing of payments made to repay the debt;

Charged periodically, during the term of the loan. This method of paying interest is most often used, since in this case the periods of receipt by credit institutions of income in the form of interest coincide with the periods of their current expenses. This allows you to balance financial flows as much as possible and, accordingly, obtain a positive financial result throughout the entire economic cycle.

Types of interest rates. Loans are issued with a fixed or floating interest rate. Loans can be obtained on the terms of a fixed interest rate, which is set for the entire period of lending and is not subject to revision until the end of the period. Floating interest rates are rates that constantly change depending on the situation in the credit markets with which they are associated.

The next element of the bank lending mechanism is the preparation and conclusion of a loan agreement. The loan agreement should reflect the basic principles of lending, compliance with which is necessary for the effective functioning of the loan. At this stage of the credit process, it is important to make an economic justification for the cost of a consumer loan based on the principle of payment.

The cost of consumer credit is one of the elements of the mechanism for the functioning of consumer credit, which is influenced by the features of this form of credit. Based on the theory of pricing (the law of supply and demand), it is advisable to consider the conditions and qualities of consumer loans that determine the demand of the population for them. The law of demand states that as the price increases, the demand for a product decreases. This is explained by the presence of the following effects.

1. The effect of psychological perception of price. It lies in the fact that the client will not buy a product if he sees that its price is high, and will purchase it if the price of it drops sharply. In our opinion, the psychological perception of the price is the main factor influencing the increase in demand for consumer loans. The client, most likely, will not be ready to overpay for a loan during the year the price of 100% of the cost. However, it is likely that in the absence of alternative offers, the borrower will agree to repay up to 30% of the loan within the same period, given the benefits that reduce the time to meet personal needs.

2. The utility effect, which is expressed in the fact that with the consumption of each new, but the same type of product, its utility decreases and, accordingly, customers are ready to buy it at a lower price than before. If we consider the effect in relation to a consumer loan, then when taking each new loan, the client, although he receives some advantage (for example, a washing machine, TV, car), but with each time he will have less and less utility, since the borrower will have to more money to give to the creditor from their wages. However, this affects the price of the loan to a lesser extent, since the potential borrower first of all evaluates in this case not the cost of the loan, but the monthly payment that he will have to pay. The amount of the monthly payment (especially for small loans) is mainly affected by the amount and term of the loan, and to a much lesser extent - its cost.

It should be noted that for a commercial loan, in contrast to a consumer loan, it is the cost that affects its utility. The lower the cost of the loan, the greater the number of borrowers will be ready to use such a loan. This is due to the fact that with a decrease in the price at which a commercial organization takes a loan, the income that it receives increases. In fact, in commercial lending there is a certain limiter for the maximum price of a loan, namely, “the rate of return on resources in business”. A commercial enterprise will never take out a loan if its value exceeds the profit that the organization is going to receive from its use.

In this regard, consumer credit looks completely different. Its usefulness is not primarily expressed in obtaining some kind of commercial benefit, expressed in rubles. The value for the consumer lies in the fact that the borrower, using a consumer loan, has the opportunity to receive any benefit much - faster. Here, the value of the benefits received weakly depends on the cost of the loan. Moreover, each borrower subjectively decides for himself what benefit he will receive from the use of credit, so the monetary value of this benefit is difficult to assess objectively.

According to the Austrian economist E. Böhm-Bawerk, the opportunity to have a blessing today, and not in the future, gets its assessment from the borrower in the form of cost per loan. This is due to the underestimation of the future by people, resulting from an insufficiently developed imagination, the transience of life and uncertainty about the future.

Of course, in any case, the high price of a consumer loan negatively affects the borrower's budget, thus reducing its usefulness. However, the very nature of the loan overshadows the negative impact of the higher price of consumer credit, since the client, taking another loan, thinks first of all about the benefits that he will receive from its use and only secondarily about the negative consequences associated with its repayment ( higher interest payments).

3. Income effect. It consists in the fact that with an increase in the price of a product, the demand for it decreases due to the limited income that can be used to purchase it. It should be noted that due to the peculiarity of consumer credit, the income effect is not so important (especially for small loans). This is due to the fact that the limited income of the client rests on the amount of the monthly installment, which, as already noted, mainly depends on the amount and term of the loan, and to a lesser extent on its value.

4. Substitution effect. It is assumed that with an increase in the price of a product, the demand for it decreases due to the fact that buyers begin to purchase substitute products. The substitution effect takes place in consumer credit. For example, a client has a choice - whether to use a loan or an installment plan. Installment payment, as a rule, is the ability to pay for the purchased goods within a certain period of time. Unlike an installment loan, the goods are not transferred to the borrower until the buyer pays in full. Therefore, the installment plan does not give the full benefits that a loan can give. In this sense, consumer credit is actually an indispensable product.

Summarizing the above, we can conclude that the most important factor influencing the increase in demand for consumer credit by reducing its price is the psychological perception of customers of this very price.

However, given that many Russian banks hide the real interest rates on loans (which will be discussed in more detail in Chapter 2), it can be assumed that the demand for consumer loans in Russia is extremely inelastic, that is, the amount of demand depends less on price changes. for credit.

Price elasticity of demand is the ratio of the percentage change in demand for a good to the percentage change in its price. Demand is elastic (price) when the percentage change in quantity demanded is greater than the percentage change in price.

We now examine the factors affecting the decrease or increase in demand.

1. Tastes or preferences of consumers. In terms of consumer lending, these tastes and preferences, rather, affect the amount of goods purchased by the population on credit than the amount used for this loan. That is, regardless of the tastes and preferences of the population, consumer credit is invariably popular. To a much greater extent, this factor affects the structure of loans received by the population, depending on their purpose.

2. The number of consumers in the market and the money income of consumers. In this case, it means that the more potential consumers on the market who have the opportunity, based on their income, to receive consumer loans, the higher the demand will be. Given that in Russia as of January 1, 2011, the volume of loans issued to the population was 7.7% of GDP, and in the US - 20%, it is too early to say that the consumer lending market in our country is completely saturated.

3. Consumer expectations regarding future prices and incomes. When purchasing a product, the borrower pays attention to its price, knowing that this price will increase over time (due to inflation). Thus, the client receives an additional incentive for the fastest purchase of this product, including with the help of a loan. Consequently, any consumer expectations associated with inflation increase the demand for consumer loans.

As already noted, prices for consumer loans are formed when there is an equilibrium between supply and demand for them. Below are the factors affecting the supply of consumer loans in the economy.

A. The costs that credit institutions have in providing consumer loans, as well as the margin (profit) they receive. These include:

a) Operating costs:

Purchase of stationery;

Payment for services rendered to the creditor;

Payment of taxes;

Salary;

b) mortgaged risks in consumer lending;

c) the cost of resources used for lending;

d) the margin received by banks from the provision of consumer loans. In this case, we mean the margin (or profit) that the lender receives by providing consumer loans, and which does not allow him to switch to the issuance of other, more profitable products (for example, redirect resources to issuing corporate loans).

The actual costs of the lender for issuing consumer loans, increased by the margin that the lender plans to receive and which does not allow him to reorient himself to other types of business, is the price below which consumer loans will in principle not be provided in the presence of increasing demand. Naturally, as the bank's margin increases, its desire to provide more consumer loans will grow. It should be noted that even despite the very large margin that is currently available in consumer lending in our country, the significant expenditure of resources required to organize a high-quality consumer lending system, as well as possible risks associated with non-return, discourage many banks from to start this type of business. As a result, the ever-increasing demand for consumer loans from the population does not have time to be satisfied by credit institutions, which does not contribute to a decrease in the cost of consumer loans.

Expectations of price changes. In Russia, lenders, assuming that inflation is likely to decrease in the near term, and this will reduce the cost of resources used in lending, actually have an incentive to invest in loans at today's fairly high rates as much as possible and for as much money as possible. long term.

Based on the above facts, it should be concluded that one of the most important features of consumer credit is the virtual absence of classical factors that limit the growth in the cost of this type of service, with the exception of three:

Psychological perception by a potential borrower of the cost of a consumer loan;

Saturation of the market, or "debt load" of the population;

The number of entities providing consumer loans to the population, and the level of competition between them.

Credit monitoring as one of the elements of lending is very important, because often due to poor quality of its implementation, banks often face problems with non-repayment of debts. Features of credit monitoring are also related to the mass character of this product. To support a large number of loans, the bank needs to have modern software and a proven technology for the interaction of all departments. So, for example, to address issues of informing customers, credit organizations very often use such high-tech notification methods as:

Lt. u-banking;

Auto redial, etc.

Dealing with arrears is also part of the monitoring. In consumer lending, this work is built as technologically as possible and in stages:

1st stage - automatic informing about the presence of overdue debts;

2nd stage - calling customers who made overdue debts;

3rd stage - visits to the place of residence of the debtor;

4th stage - judicial and post-trial proceedings.

The evolution of consumer credit is accompanied by the expansion of its types. Types of credit, being a fundamental element of the mechanism of bank lending, largely determine its content. Based on the use of certain types of credit, modeling of typical lending methods, banking technologies for providing loans, diversification of the loan portfolio takes place. Determining the criteria for classifying consumer loans allows you to get an idea of ​​the diversity of their types in relation to modern banking practice. Below we propose a classification of consumer loans according to economic and organizational criteria, which have already been described in more detail above.

Table 1. Classification of types of consumer loans

Classification criteria	Types of consumer loans
	Segmentation of loans by age and social groups
2. Availability of collateral	Secured Unsecured
3. Having proof of income	With proof of income Without proof of income
4. Delivery scheme	Direct Indirect
5. Purpose	Targeted Non-Targeted
	For urgent needs For the purchase of durable goods and services For the purchase of vehicles For education, etc.
Classification criteria	Types of consumer loans
7. Period of use	Loans with a maturity of up to 30 days from the date of issue of the loan Short-term loans - maturity up to 1 year Medium-term loans - maturity from 1 year Long-term loans - maturity over 3 years
8. Type of interest rates	fixed floating Variables
9. Method of charging interest	At the time of loan disbursement At the end of the loan term Periodically charged
10. Method of repayment	Lump sum With installment payment By revolving scheme
11. Repayment method	Repayment through the cash desk of the branch of the bank that issued the loan Repayment through cash desks of other banks Repayment through Russian Post offices Repayment through other payment systems

The proposed classification, in our opinion, makes it possible to expand the capabilities of banks in the further development of the consumer lending mechanism. On the basis of a greater variety of banking products, the choice of flexible options when structuring credit operations, customer satisfaction is achieved, ensuring the profitable operation of banks and improving the quality of the loan portfolio.