Translated from Latin «credit» (creditum) means «loan». This word reflects the essence of the lending process. One party (lender) provides the other party (borrower) with a cash http://usapaydayloans.info/wisconsin/manitowoc/ loan for a certain period of time. The borrower undertakes to pay the lender the amount taken and the agreed Commission (interest) within the period established by the lender.
Credit relations originated long before there was money, even in the days of natural exchange. A simple example: one hunter got 10 hares. The other did nothing, so asked first to give him 2 pieces.
He agrees on the condition that after a few days, today the unlucky hunter will return him to 3 birds with one stone. There is a simple scheme of lending, i.e. economic relations based on payment and trust.
Credit – an economic relationship associated with the transfer of one party to the other any tangible assets (money, goods) under the following conditions: repayment of borrowed funds within the prescribed period for a fee.
Every year more and more new banking products appear on the credit market. This increases inflow of new clients and, consequently, increase the income of banks. Consider the most popular in our country Bank credit products. As a rule, consumer loans taken from the Bank are spent on the purchase of expensive household appliances, computers, furniture, treatment, travel, education.
Age of the borrower – from 18 years. The maximum loan term is 7 years. Loans are issued in two versions: with and without collateral. As security can be a pledge (mortgage) of real estate or a guarantee.