Different forms of Credit
Credit forms - In principle to differentiate are personal loans and bank credits. With the personal loan a private person gives usually a credit to another private person or company, whereby contrary to the bank credit no creation of money takes place. With the personal loan done thus the credit giving person without the money granted as credit and can require the payment as compensation for the liquidity renouncement and the received risk of interest.
A bank, the credit gives, scoops by the granting of credit always additional money and therefore carries no renouncement out. Banks with the same reasons (renouncement of liquidity, risk premium) nevertheless demand likewise the payment of credit interests, whereby the loss risk/bankruptcy risk of the applicant for the credit for the bank with rising credit interests likewise rises. Also during the first of a bank credit a clearing bank does not suffer i.d.R. a liquidity loss, since with the granting of credit developing demands for credit are frequently issuing bankable and can with the central bank in central bank and cash be exchanged.
One of the most frequent forms of credits is the Darlehn. A Darlehn is the contractually bedungene customs over letting of money or goods (speciallean) by the Darlehnsgeber (Dargeber) at the Darlehnsnehmer by conveyance of the notes, coins or goods or the transfer of other articles. Usually between the parties a firm repayment agreement is met. In the absence of such the repayment of the loan validity becomes due together with interest, if the Darlehn were quit by one of the parties.
The Darlehnsvaluta is usually booked on a special account of the applicant for the credit and credited when disbursement up to date account. With annuitätischen loans contain the rate apart from interest also a repayment portion, which rises in the course of the repayment proportionately.
Cash credits are granted by a line of credit on current account or a separate account (e.g. arrangement credits, security credits). The line of credit is usually granted limited for a certain period, can be taken at run time however in varying height by appropriate payments in requirement. There are no concrete feedback agreements except the total stipulation of a time limit. Apart from interest for the demand partly for the not taken up credit part one than credit commission or supply interest designated time-dependant remuneration charged for. The cash credit is usually out-arranged as revolvierender credit; this permits to take up even during brief feedback again up to the full height the granted line of credit the credit again.
Both forms are legal money-borrow loans. As if credit-borrow credits by way of bank guarantee, letter of credit credits and credits in blank are designated. Here makes the bank with their own credit-worthiness available, since such business requires the engagement of a bank.
Credit skeleton agreements can be taken up after (usually operational) the requirements of the applicant for the credit as cash credit or partly than bill guarantee, in the form of letters of credit, loans or than bill credit.
There are here fundamental differences as a function of the characteristics of the applicants for the credit. The distinction criteria of private customers and business customers are different with the individual credit institutes.
Credits for private customers
Private customers are usually dependant persons employed or private people, who do not operate trade. Here find special regulations, those in the context of the consumer protection regarding the regulation on the marking of prices or the document of identification of the effective yearly interest application. Hereby the customers the comparability of the different offers of credit is to be facilitated.
For the raising of credit the majority must be reached. Individual clearing banks use automated soil quality investigations due to data from the available business relations and/or information that credit investigation bureau.
- Order credits are a special form of the cash credit. The limit is determined frequently automated on the basis of several average regular receipts of payment, like content or pension payments.
- Acquisition credits are loans for a certain consumer purpose, here are running times up to six years common. The installment covers the appropriate interest payments apart from the credit repayment also. Handling charges result generally additionally. For the evaluation of the credit-worthiness a reasonable load is determined, in order to protect the customer against insolvency. For the security occasionally transfers by way of security of the object of the purchase are consulted. In addition the conclusion of a Restschuldversicherung, is possible for a special form of the life insurance. The disbursement takes place via credit note up to date account or via transfer of the purchase price to the salesman.
- As construction financings loans designates for the acquisition or building of real estate to be used. The repayment been made usually via annuities by a long period, 30 years are usual. For the provision of security mortgage liens are consulted such as mortgages or land charges on the financed object. The disbursement takes place usually after building progress. Apart from usually interest agreed upon firmly for a long period different additional expenses fall such as handling charges or fees for the collateral order. Disbursement anticipated payments (these agio) are usual, which reduce the interest load.
- Bridging finances are usually finaldue cash credits for the Vorfinanzierung of saving loans with a building company in connection with construction financings.
- Vorfinanzierungen are cash credits those for example the time up to the entrance of a payment from a life insurance or proceeds from a real estate sale to be granted
- Security credits are cash credits, which are granted against Verpfändung by securities, here are valid usually firm regulating for the lending of securities.
- Credits by way of bank guarantee are lines of credit for the assumption of endorsements for pre-payments or rents.
Credits for business customers
Business customers are usually full buyers. The rules from the consumer protection apply here no. The transitions between financing by borrowing and other financing are, since partly the capital market is directly accessible to the larger enterprises, these possibilities of the direct use of the capital market reach flowing from aktivischem daily allowance to quoted loans.
- Investment loans are loans for the financing of articles of the fixed assets.
- Working capital credit are cash credits for financing of the circulating capital, which are granted frequently as lines of credit on current accounts. Usually they are out-arranged as revolvierende credits and permit after reduction again the full demand. Additionally to the interest credit commissions for not taken up credit parts of the credit giver can be made valid.
- Goods financings or cash advances are cash credits, which are booked about special accounts usually and are finaldue granted usually only at short notice.
- Of structured credits one speaks, if apart from the actual granting of credit further arrangements are contractually agreed upon as for the delimitation of future interest rates or conversion of debts agreements for subsequent periods. Also further derivatives of products are partly coupled to the credit agreement.
- Open-market credits are credits, which are granted partly by banks, partly also by other investors. Here the border is flowing for the procurement of capital of the companies.
- Discount credits are granted for the purchase by changes.
- Documentary credits and credits in blank are a credit instrument in the foreign trade. Here banks enter the adhesion for changes by acceptance and improve by its Mithaft the soil quality of the change.
- Credits by way of bank guarantee are lines of credit for the assumption of endorsements and warranties by banks for example for guarantee, tariffs or received pre-payments.
- Letter of credit lines serve the financing of import business.
- Roll-over loans are credits at fixed interest, with which the interest however not for the entire running time are fixed, but one adapts to respective market conditions in contractually specified distances.
Interbank business
Interbank business credit agreements under banks are called (proven in the bank balance sheet as taken up funds).
- In addition, credits in foreign exchange serve usually the raising of funds in the international exchange, can serve the refinancing.
- Commercial lines are lines of credit for the security or foreign-exchange trading.
Credits at public institutions. Also to the countries, the state, municipalities or state enterprises credits are given - Local loan is the comprehensive term for all long-term loans of the countries, districts or municipalities.
- Debenture bonds are loans, which can be refinanced by capital marketable titles.
- Kassenkredite serve the short term liquidity procurement.
- Treasury bonds are practically Kassenkredite, however in the form by changes are out-arranged. To obtain under issuing banks it also assigned around interest income from the foreign exchange reserves.