Getting a loan is a loan of money from a bank. There are the following types of loans. A current account is a loan under a special current account. A current account is a combination of a current account and a loan account. All transactions of the bank with the client are reflected in the current account.
In the form of a current account credit, a certain limit of tender funds may be granted (specified in the credit agreement), which is determined by the borrower's funds, the scope of its activities, the strength of ties with the bank, and the main characteristics of creditworthiness. Current account credit may be provided with or without collateral (blank credit is provided only to first-class borrowers).
Once a quarter or half a year, the bank carries out calculations, at the same time calculates the entire income and expenditure of the client's funds and determines the actual amount of the loan on the current account.
A similar situation may occur in the current accounts of the bank's client, it is called overdraft. Overdraft is a form of short-term bank lending. It was the first time it appeared in England. The bank gives its client the right to pay with cheques over and above the current account balance. Such right is given to the most reliable clients. At the same time, an additional agreement is concluded, which fixes the deadline for covering the resulting debt, as well as the percentage of deductions to the bank for the provision of overdraft.
At present, an overdraft situation often occurs in case of check forms of settlements, use of credit cards.
On-call credit is a type of current account credit and is usually issued against the pledge of inventory or securities. Within the secured loan the bank pays the client's bills, receiving the right to repay the loan at the first demand at the expense of the funds received by the client, and in case of their insufficiency - by selling the collateral. The interest rate on the oncoll-loan is lower than on ordinary bank loans.
Loans under promissory notes. A promissory note (Weasel - change, exchange) is a written debenture issued by a borrower to a creditor in accordance with special (promissory note) legislation. A bill of exchange is a universal payment, settlement and credit document suitable for payment for goods and services, provision of short-term loans, obtaining previously granted loans.
Promissory note (solo) - a certificate containing a written unconditional obligation of the bill issuer to pay a certain amount of money to the bearer of the bill of exchange or to the person specified in the bill of exchange, through a specified period of time or upon presentation.
The bill of exchange (bill of exchange) is a document containing a written unconditional indication of the bill of exchange to the person for whom the bill of exchange (payer) is issued, to pay a certain amount of money to the holder of the bill of exchange or to the person specified in the bill of exchange, after a specified period of time or upon request. The payer under the promissory note is the bill issuer, and under the bill of exchange - another person who undertakes to pay the bill of exchange on time and is the debtor of the bill of exchange.
When issuing a bill of exchange, the issuer becomes obliged to the holder of the bill of exchange. Under the bill of exchange, the Payer is obliged, therefore the bill of exchange is first of all presented to the payer for acceptance (Latin accepts - accepted), i.e. the consent to payment. By means of acceptance, the payer undertakes to pay for the bill of exchange.
Acceptance is made by an inscription on the bill of exchange ("Accepted"). I undertake to pay" or another equivalent word or phrase) and the payer's signature. So he becomes the acceptor - the main debtor of the bill of exchange. Under the promissory note, the draughtsman has obliged as well as the accept ant on transfer.
The bill holder can present the bill for payment after the established term or, without waiting for the established term, can transfer it to other person by means of a special transfer inscription - endorsement (lat. in dorsum - a back) on the back of the bill or on specially attached sheet - allonge (fr. allonge - an extension), but already for payment of the debt, or it can sell the bill. Selling a bill of exchange before maturity is called taking into account the bill of exchange; it is intended to make money immediately.
Payment on the bill of exchange (within the whole amount of the bill of exchange or only a part of it) can be guaranteed by a third party or one of the persons who signed the bill of exchange. Such a bill of exchange is called an aval (Fr. aval - a bill of exchange guarantee); it is executed with a guarantee inscription and signature of the avalist - the person making the aval. The aval can also be made by issuing a special document. Avalists charge a fee for the guarantee.
A loan secured by a bill of exchange. Such an operation has already been mentioned when considering the nature of credit security - the bill of exchange was mentioned as a way to secure the credit.