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Tín dụng là gì? Những điều cơ bản cần biết khi nhắc đến tín dụng

What is credit? What are the characteristics of credit? What is the role of credit? What are the most popular credit products today? How is credit interest calculated? This is definitely a question that many people are interested in. Therefore, in the article below, let’s find out what credit is and the basic knowledge about credit!

What is credit?

Credit (Credit) is clearly defined as the representation of a loan-to-borrow relationship. In which, the borrower can be an individual or an organization. The lender is a bank, or a credit financial institution. Loan products can be goods or money.

This loan and loan relationship has specific regulations and constraints. Like a mortgage or a mortgage. Besides, credit is always associated with interest rates. Credit loans are subject to interest rates prescribed by the lender. The borrower who wants to borrow must accept the implementation.

What is Personal Credit?

To refer to personal loans for personal needs such as: self-employment, house purchase, car purchase, shopping, personal consumption, study abroad…

Individual customers can borrow at banks if they want to borrow large loans, ensuring safety, prestige, and preferential interest rates. On the contrary, if you are in need of an urgent loan without providing too many documents, your advice is to choose credit institutions other than banks.

What is business credit?

To refer to loans borrowed by an enterprise to serve its business purposes, for example: Capital rotation, additional capital, purchase of raw materials for business, production, project implementation …

For corporate customers, a bank loan for business investment is the optimal choice!

What is bank credit?

Bank credit is a concept that refers to the lending relationship between a bank/credit institution and other individuals or organizations. In it, the bank can act as both a borrower and a lender. Individual/business customers who deposit in banks will act as lenders to the bank.

Features of credit

Credit typically has the following characteristics:

  • Credit activities often have binding regulations for borrowers and lenders such as mortgage loans (with collateral), unsecured loans (based on the borrower’s reputation and solvency), overdraft loans. (with certified fixed income),…
  • Credit loans will apply a certain interest rate. This means that the borrower has to pay both principal and interest to the lender when the payment is due.
  • Transfer of the right to use capital is of a temporary nature from the lender to the borrower according to the agreement between the parties.

Credit classification

After understanding what credit is, let’s learn about classification.

Based on credit periodcredit is divided into:

  • Short-term credit: is a type of credit with a term of no more than 12 months, usually used to provide loans to supplement working capital of businesses and payment needs for personal living.
  • Medium-term credit: A type of credit with a term of more than 12 months to 60 months, used to provide loans for the purchase of fixed assets, technical improvement and innovation, expansion and construction of small-scale projects. businesses and lend money to build houses or buy high-value consumer goods.
  • Long-term credit: is a type of credit with a term of over 60 months, used to lend to investment projects for new construction, improvement and large-scale production expansion.

Based on credit object:

According to this criterion, credit is divided into two types:

  • Working capital credit: A type of credit granted to form working capital for businesses or other economic entities.
  • Fixed capital credit: A type of credit granted to form fixed capital of enterprises or other economic entities. This type of credit is made in the form of medium and long-term loans.

Based on the purpose of using credit capital:

According to this criterion, credit is divided into two types:

  • Credit for production and circulation of goods: A type of credit granted to businesses and other economic entities to conduct production and business of goods and services.
  • Consumer Credit: A type of credit granted to individuals to meet their consumption needs

Based on the credit subject:

Depending on the subject in the credit relationship, credit is divided into the following types of credit:

  • Trade credit: Is a credit relationship between enterprises in the form of purchase and sale of goods on credit or advance money before receiving goods.
  • Bank credit: A credit relationship between a bank and businesses, individuals and social organizations.
  • State credit: A form of credit showing the relationship between the State and businesses, individuals and social organizations. The state is both a borrower and a lender.

Based on the nature of loan security:

  • Asset-secured credit: A type of credit secured by the assets of the customer, the guarantor or formed from loan capital.
  • Non-property secured credit: A type of credit secured in the form of unsecured loans, loans specified by the Government and guaranteed loans from local organizations and local governments. .

Based on the credit operation territory:

Based on this criterion, credit is divided into two types:

  • Domestic credit: A credit relationship arising within the national territory.
  • International credit: A credit relationship arising between countries or between a country and an international financial-credit institution.

The role of credit

In the above we have learned about what credit is and its characteristics. So what is the role of credit? Let’s find out in the next part!

For individuals and economic organizations

Individuals and economic organizations do not always have a certain amount of capital available to finance spending, purchasing or maintaining production and business activities. Especially for those who need capital are low-income workers or production households, small and medium-sized enterprises.

The lack of capital will become a big economic burden in life and disrupt the production and business process. Therefore, credit was born with the goal of solving the “thirst for capital” of individuals and businesses.

Moreover, credit institutions often facilitate loans to the needy with preferential interest rates and the loan period can be short or long depending on the borrower’s wishes.

For banks/financial institutions

Lending is one of the main purposes of existence of banks/financial institutions. Lending and calculating interest rates will bring great profits to these credit institutions. Thanks to that, they have more capital to expand their scale, upgrade in terms of technology…

For economy

In the current era of integration, borrowing from banks and international financial institutions. Has become an urgent need for all developing countries in the world. This loan will help developing countries grow their economy and people’s lives. Thanks to that, it is enhanced and improved.

Domestic consumer lending also needs to be boosted to help alleviate deflation. And partially handle the difficulties caused by the global economic crisis to the export sector of our country.

The most popular credit products today

Unsecured loan

Unsecured loan is a form of credit (loan) through the creditworthiness of the borrower. Specifically, borrowers can prove their own creditworthiness, equivalent to their ability to repay loans through unsecured documents to get loan approval from lenders.

Here are the most common types of unsecured loans today:

  • Unsecured loan according to salary (through proof of monthly salary income)
  • Unsecured loan under motorcycle registration certificate (provide motorcycle registration documents to secure the loan)
  • Unsecured loan according to the car registration certificate (provide the car registration document to secure the loan. Because the car is a valuable document, the unsecured loan limit is according to the car registration certificate. bowl is very high)
  • Unsecured loans according to ID card and household registration book (borrowing money only needs to have the original household registration book and ID card)
  • Unsecured loans according to electricity and water bills (proven credibility through electricity/water bills of the last 3 months)
  • Unsecured loans according to life insurance books (proving credibility through life insurance books)

Unsecured loan limit will depend on each type of loan and the creditworthiness of the loan file that you provide to credit institutions.

Currently, most banks only support unsecured salary loans with a maximum limit of 10-12 times salary, loan term from 6 to 60 months, interest rates ranging from 15 – 30%/year. by decreasing balance.

With other forms of unsecured loans, the maximum loan limit is usually 30 – 50 million depending on the policy of each borrower. Customers who need unsecured loans according to vehicle registration, loans according to ID cards and household registration books, loans according to electricity and water bills … can look to other reputable financial companies in the market for support.

Mortgage loan

Mortgage loan is a form of borrowing money through the mortgage / pledge of existing assets. Customers mortgage / pledge assets to borrow an amount of money according to their needs and will get back the collateral after fully repaying both interest and principal of the loan. If the borrower is unable to repay the loan by the due date, the property will be seized and liquidated by the lender.

The most common types of mortgage loans today are:

  • Real estate/real estate mortgage loan
  • Car mortgage loan
  • Mortgage of savings books and valuable papers
  • Mortgage loans for small assets: Motorcycles, phones, computers, gold, watches,…

The mortgage loan limit will depend on the value of your collateral, up to 70-90% of the property value.

Due to the collateral as security, the current mortgage interest rate is very favorable, lower than the unsecured loan interest rate.

Overdraft loan

An overdraft loan is a credit package exclusively for borrowers at a bank, when the borrower needs to use more than the amount currently available in the personal checking account.

Currently, the maximum overdraft loan limit is 5 times the customer’s income. Overdraft borrowers need to prove a fixed monthly income so that the bank can trust and support loan approval beyond the current account.

Credit interest rate

What is credit interest rate?

When you borrow money, you need to pay a loan service fee to financial institutions, this fee is credit interest rate.

Interest rate is the percentage calculated on the principal loan that you need to pay more to the borrower, which is also the cost to pay for the loan. Interest can be calculated monthly or annually, paid monthly or settled at the end of the period depending on the policy of the borrower.

How to calculate credit interest?

  • Interest is calculated on the original balance

As an interest calculation based on the original amount of the loan, the amount of interest payable will remain the same throughout the loan term.

For example: Mr. A borrows 30 million from the bank for 30 months, the interest rate is 12%/year based on the initial outstanding balance. Thus, the monthly interest rate is 12/12 = 1%/month.

Because the interest rate is calculated on the initial balance, monthly, the amount of interest Mr. A has to pay to the bank is fixed: 30 million x 1% = 300,000 VND for 1 month

Total interest payable is: 300,000 VND x 30 months = 9 million.

  • Interest is calculated on a decreasing balance

Is a way to calculate interest based on the remaining balance after 1 monthly installment of principal. With this calculation, the amount of interest payable will decrease month by month.

For example: Mr. A borrows 30 million from the bank for 30 months, the interest rate is 18%/year based on the decreasing balance. Thus, the monthly interest rate is 18/12 = 1.5%/month.

Each month, the principal amount to be paid in periodic installments is: 30 million/30 months = 1 million VND

  • The first month, the amount of interest to be paid is: 1.5% x 30 million = VND 450,000
  • In the 2nd month, the interest payable is: 1.5% x (30 million – 1 million) = 435,000 VND
  • In the 3rd month, the interest payable is: 1.5% x (29 million – 1 million) = 420,000 VND
  • Continue to decrease like this until the last month of repayment, the amount of interest to be paid remains: 1.5% x 1 million = 15,000 VND

Thus, depending on how different interest rates are calculated, the amount to be paid will be different. With the same interest rate, the amount of interest payable when calculated according to the decreasing balance will be smaller than the interest payable when calculating the principal balance, so when taking out a loan, customers should pay attention to the calculation method. credit interest rates.

Here are some basic information about credit to help you understand What is credit and what to know when it comes to credit. Hope this article has provided you with useful information.

Nguồn : Chanh Tươi