What is a loan? Detailed analysis

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The article talks about what a loan is, why they take it, and deals with the topic of microcredit organizations that are popular in our time.

Ancient times

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

With the development of commodity-money relations, we althy people also appeared who could give another person material values with the condition of a 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 profit - it's all about interest, or property, on the security of which a loan was taken. Often, moneylenders, seeing a hopeless situation, deliberately set unfavorable conditions for the borrower, therefore, in society, they have always been treated negatively by and large.

Banks

Much later, the first banks appeared, which entered into a loan agreement and differed from usurers in clear conditions thatcontrolled by the authorities, as well as the possibility of a gradual increase in deposits or other banking operations.

Nowadays, in almost all developed countries of the world, banks offer various credit services, and this has long become commonplace: 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 you get it without even leaving your home, for example, to a bank card? We'll figure it out.

Definition

First, let's take a look at the terminology. A loan is a certain type of obligation relationship, an agreement according to which one party transfers to the other the ownership or temporary management of some material assets - money, property, with the condition of mandatory return within a specified period. Such an agreement can be both free of charge and paid, and interest is usually charged for such a service. For example, if a person takes a loan in the amount of 1000 rubles, then he must return 1500 rubles. So now we know what a loan is.

The heart of the matter

But if there are loans, why borrow? The thing is that obtaining a loan from a bank can take a long time and requires numerous certificates of income so that the bank employee who issues the loan is sure of its return. In addition, under current legislation, the interest rate and terms of the loan cannot exceedspecially established norms.

Well, they apply for a loan 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 income statements and other documents. But for such convenience and speed, you have to pay high interest rates and tight deadlines. So we figured out what a loan is.

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

It's all about the high percentage of approval of applications. Large banks have at their disposal a database of debtors and simply persons who have or have once taken out loans for themselves, and, depending on the credit history, make a decision whether to cooperate with the client further or not. Simply put, an unemployed person with outstanding loans or other debts will almost certainly be turned down. And organizations issuing microcredits will approve the application and conclude a loan agreement. Naturally, they do not work at a loss, and when they accumulate debt, they simply sell debt to collection agencies.

Bank card

With the development of the Internet and digital technologies, organizations have recently appeared that provide an urgent loan on a credit card. For convenience, all operations are carried out through the Network, by filling out electronic forms on the organization's website. It details the conditionsreceipt, interest rate, repayment terms, accrual of late fees, etc.

They differ in terms of consideration and documents that are required. Usually, to receive funds, you need to indicate your passport details, upload a scan of some documents and contact details. If the application is approved, the operator contacts the client to clarify the details, and the person receives a loan on the card. But when making it, you need to be very careful and study in detail all the regulatory documents and conditions in order to avoid problems in the future.