Credit Application - Who Gives the money?
In principle the grant of a credit must take place not necessarily via a Credit institute. Special loan can e.g. by the neighbor by hiring by flour or eggs be granted. Among buyers for example goods deliveries are quite usual against a later payment to a ausbedungenen date (see credit granted by suppliers). The manufacturer of the commodity leaves these to the buyer in faithful and faith, frequently materially underlaid by a written promise to pay, for example a change.
Within the private sector the meaning of the goods financing - for example by an installment credit with a firm rate agreement - increased for the fifties constantly. Here direct contractual relations between dealers and the final consumer are quite usually, partly also own financial establishments of the manufacturers - for example in the mail-order operation or in the autotrade - are switched on.
With credits, which are granted without engagement by credit institutes, the security of the demand is usual by a retention of title at the supplied commodity. The credit giver convinces itself of the economic efficiency of the debtor (soil quality).
The supply of credits requires the employment of own means by the credit giver. Banks begin for this beside own capital funds central bank money, which can be procured by refinancing.
Credit institutes
I German linguistic area are usually claimant as Universalbank clearing banks, the most important credit givers, that assign all forms of credit. Besides are available special banks, about mortgage banks and installment credit institutions, with a part of the possible credit products. Building societies assign loans for construction financing. Dispatch dealers and automakers have usually subsidiaries, which offer credits for the payment of the sold products. By July 2006 2,651, 1 billion € credits to domestic non-banks were granted by German banks
For the refinancing or distribution of the credit risk several credit givers can form a consortium and assign this Konsortialkredit at the Community level with large credits.
When further special banks are the kreditanstalt fuer wiederaufbau, institutes for national promotion mentioned, which offer at subsized interests loans, which must be however usually requested over clearing banks under order-political criteria, which take over also the technical completion. For this service they receive a part of the interest-rate margin.
Central banks as credit givers
Central banks are as credit givers clearing banks at the disposal, it offer the Verpfändung of securities and demands for credit to clearing banks, which can get and cash have in response central bank money credited. As interest rate for these credits is the basis interest set of the European central bank (until 1999: To pay rate of discount), whereby the assets are paid interest on clearing banks with the central bank in same height. Central bank and cash can claim from clearing banks at any time and for an unlimited period in the context of the Spitzenrefinanzierungsfazilität against Verpfändung of active with the central bank.
The central banks can grant Kassenkredite to the state and the institutions of the public institutions for the Vorfinanzierung of future incomes.
Other credit givers
Life assurance companies offer classical construction financings, which are erased by the due life insurance, which is to be saved during the credit period. Besides the agreed upon interests on loans are to be paid.
In the third world in the context of development assistance by different initiatives micro credits - limits usually to few hundreds € - are granted, in order to promote the structure from small industrial concerns to.
Credits can be granted also by private people. Major item: Personal loan