Today, almost every person has an urgent need for a loan of funds. A way out of this situation can be the execution of a loan or credit agreement in writing or orally. You can borrow money from relatives or friends. You can conclude such agreements with a credit institution.
In the legislation of the Russian Federation, credit agreements and loan agreements are referred to documents of the same meaning. However, they have a number of differences that quite strongly affect their essence.
The concept of a loan agreement
A loan agreement is a written agreement signed by both parties. The subject of the agreement is the provision of funds by the lender on the terms of urgency, interest payment and repayment by the borrower. The signing of an agreement by two parties stipulates that each of them has its own rights and obligations. The bank is obliged to issue a loan to the client, and the client, in turn, undertakes to repay this loan in a timely manner with payment of all interest for its use.
Depending on the term of the loan, loan agreements are divided into long-term and short-term. As a rule, legal entities and entrepreneurs use short-term loans to replenish working capital. Long-term loans are more suitable for the purposes of the population, namely when buying a car or home on credit.
According to the loan agreement, the money is issued in a non-cash way to the account of the seller of the future loan collateral. This is how credit organizations track the intended use of the loan.
For the use of the loan amount, the interest rate is indicated on an annual basis. It can be fixed for the entire loan term or floating, that is, it changes depending on market conditions or annually. Liabilities for a loan arise immediately after the conclusion of a loan agreement, but at the same time, money can be issued in tranches at the frequency specified by the borrower.
Loan agreement concept
A loan agreement is an agreement, the subject of which is not only money, but also things transferred by the lender to the borrower. Under this agreement, the borrower must return an amount of money equal to the size of the loan or an equivalent amount of things of the same quality and kind that were lent. This is what distinguishes a loan agreement from a loan or property loan.
The contract can be concluded orally (when the amount of borrowed funds is not more than ten minimum wages) or in writing. There is no obligatory target use of money in the loan agreement.
To register a loan transaction, any document or receipt is sufficient, which will attest to the transfer of values / money from one person to another. The transfer of the loan is also confirmed by two types of securities: a bill of exchange and a bond. These securities allow you to get back their par value and interest in relation to the par value.
From the above, it follows that the loan agreement has a narrower specialization than the loan agreement and its execution takes place according to more stringent requirements. The loan agreement is concluded only with solvent clients, the financial condition of which is checked by the credit institution.
