VII Международная студенческая научная конференция Студенческий научный форум - 2015

The paper is dedicated to discussion the problem of  credit, loan relations, Functions of credit, the role of loan.

The article talks about the role of credit in the economy, what is most profitable to take the credit. Document discloses such thing as a commercial loan, bank loan, mortgage loan, international loan. The paper is divided into the following items:

1. A loan or credit relations

2. Functions of the loan

3. Types of credit

4. The focus of the loan

5. Pros and cons of credit

6. The role of credit in economic

The paper and the Power Point Presentation may be used in teaching students of colleges and universities, in the classroom, in study groups, in the educational process for training managers and economists. My presentation was used in the classroom for business English in VLSU group MN-112.

Text.

         Loan or credit relations - social relations that arise between the subjects of economic relations on the movement of the value. Credit relations can be expressed in various forms of credit (trade credit, Bank credit, and others), loan, leasing, factoring, etc.

         The emergence of credit as a special form of cost relations occurs when the value of the released one economic entity, while not enter into a new reproductive cycle. Thanks to the loan, it goes from a subject that does not use it (the creditor)to another entity, which need additional funds (the borrower).

    The basic principles of lending are recurrence, urgency, and payment. Recovery assumes that the passed in debt values in the form specified in advance (loan agreement), most of the money will be returned to the seller of the loan (the lender). Violation of the principle of recoverability can cause irreparable damage to the creditor, therefore, in the present conditions in the loan agreements usually stipulate the methods of credit risk insurance. Targeted lending provides repayment of, and payment of the loan.

         Functions of credit: the redistribution, creation of credit instruments of treatment; reproductive and stimulating.

Commodity loan form implies the transfer of the temporary use of concrete objects defined by generic characteristics. This form historically existed in the pre-money relations.

Cash loan implies lending of a specified amount of money. Cash is predominant in modern economic conditions.

Mixed form of a loan occurs when the loan was granted in the form of goods and money back or Vice versa - provided money, and returned in the form of goods.

         How credit affects the economy?

         The role of credit in any market economy, and the more developed countries can not be overemphasized. Thanks to this instrument made ​​possible the accumulation of free cash assets belonging not only to individuals and commercial organizations, but also the state.

         This process occurs by making savings and deposits to the accounts of commercial banks, as well as by investing in production and securities. The collection of these funds constitutes a so-called loan capital, which is transmitted to the developing economy and, after a period of time, returns to the lender in increments.

         In addition, the loan is the main instrument for regulating the money supply in circulation and the velocity of money circulation in the country. By varying the rate of refinancing, the government may increase or decrease the amount of cash, reduce or increase the time of its turnover.

 

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