The Bank receives a percentage of the amount of each transaction for its services.

The Bank receives a percentage of the amount of each transaction for its services.

standard loans; non-standard loans; doubtful; dangerous; hopeless.

By method of provision:

one-time – one full amount, which is provided by the loan agreement; in the form of a credit line – in several parts, the total amount of which does not exceed the amount of the contract; in the form of a revolving credit line – the client may repeatedly take and repay any amounts, provided that the balance on the ship’s account does not exceed the limit specified in the loan agreement. Clients under this form of lending can be individuals with a stable income schedule (primarily bank employees). The list of clients who are not employees of the bank is approved by the credit committee. The amount of the limit is calculated as ½ from the total income received by the borrower (wages, bonuses, other payments) for the last three months.

Monetary consumer loans by maturity are classified into:

installment loans; revolving (recovery) loans; loans without installments.

Loans for housing construction are allocated in a separate category and are called mortgage loans, they are provided secured by real estate.

The loan in installments provides for its repayment and interest thereon in equal monthly installments. The maturity of such loans is from two to five years, the loan amount depends on the object of lending, loans are provided secured by guarantors.

Installment loan is the main part of a consumer loan (in the US – (of its total amount). In Western Europe and the United States, installment loans are divided into direct and indirect bank consumer loans. In direct lending, an agreement is concluded between the bank and the borrower. In the case of an indirect intermediary, he has an agreement with the bank, receives a loan from the bank and transfers it to the consumer.

The group of revolving loans includes loans granted by the borrower on a single active-passive current account in the form of an overdraft or credit card. The overdraft is provided under the security of a savings deposit or securities or without collateral by issuing a checkbook.

A credit card is a plate with the owner’s ID. The condition for receiving the card is the customer’s solvency. A credit limit is set for each card.

The bank receives income from credit card transactions, which consists of:

commissions dealt with by trade organizations when paying bills for goods sold to a credit card holder (mainly from 1 to 4% of credit card sales); annual payment of clients for credit cards (if it works); interest on the loan provided to cardholders within the credit limit.

Credit cards involve three parties: the bank issuing the credit card, its holder and the trading organization that accepts credit cards as a means of payment for goods and services. To obtain a credit card, the client must provide the bank with the amount of money set by the bank. Payment for goods and services can be made in the absence of funds in the client’s account, ie through a bank loan. The Bank receives a percentage of the amount of each transaction for its services. Credit card users must also transfer a certain amount of money for card maintenance and annual renewal.

“This option of permanent consumer credit is becoming more widespread abroad. International financial associations such as” VISA “” American Express “” MasterCard “provide plastic card holders with almost any service in any service. These credit cards are accepted. In about 220 countries . “

Bank credit cards are convenient tools and provide the customer with a revolving credit line that can be used as needed. However, bankers of foreign banks have come to the conclusion that due to the growing number of insolvent borrowers, increasing the number of stolen or used for credit card fraud is vital for the bank is careful management and control of credit card programs.

There is evidence in favor of the fact that this area is characterized by the effect of scale, as it is usually profitable to operate with credit cards only the largest banks. But despite this, credit cards have good prospects due to the development of technology, which allows their holders to access a full range of financial services.

Overdraft – when using it, checks are paid from the client’s account. If the funds are not in the account, the bank covers the negative balance with a loan within the established limit. The loan is repaid at the expense of current income or special customer contributions.

Special check accounts are used by some banks that issue special checks of a certain denomination to their customers. The bank sets a credit limit for the client and issues checks for its amount. The client’s use of checks leads to the exhaustion of the credit limit, and receipts on the check account restore the limit. The check credit fee is charged as a percentage of the amount used.

Fig. 1. The essence of a revolving credit card loan.

Banks receive income from this loan from interest charged on commercial enterprises for the payment of commercial bills, interest on the loan and card fees.

The third group of loans, loans without installments, is characterized by the fact that the repayment of debt and interest on it is carried out simultaneously. These loans are called bridging loans. These are short-term loans to individuals or families to cover current cash needs, which are repaid in a single amount at the end of the loan term or at the time of repayment of the borrower’s debt receipt. This loan can be provided in relatively small amounts with a maturity, usually within 30 days, or other insignificant period of time.

In addition to these loans, individual borrowers are also provided with a short-term accounting loan (promissory note discount), a loan with individual conditions for the purchase of expensive goods, children’s education, personal loans to students and more.

“Loans provided to individuals by domestic banks (mostly institutions of the Savings Bank of Ukraine) can be divided into two groups. The first combines loans to improve housing and household. They are relatively large and are provided for a relatively long period. The first group includes loans issued:

for the construction of individual houses with outbuildings; to purchase from citizens individual houses with outbuildings; for reconstruction, overhaul of individual houses; for the construction of outbuildings; for the construction and purchase of garden houses; to buy unoccupied houses in rural areas; for major repairs of garden houses and houses in rural areas; for the construction of garages; for the purchase of apartments and overhaul of your own apartment; for the initial contribution to a housing or housing cooperative.

The second group includes loans for urgent needs and secured by securities and securities. “

The Bank provides loans to individuals in amounts determined based on the value of goods and services that are the object of lending. The amount of credit for the construction, purchase and repair of residential buildings, garden houses, cottages and other buildings is determined within the value of property, property rights that can be transferred to the bank to provide an individual and the amount of its current income , except for mandatory payments, during 10 years. The term of the loan is set depending on the purpose of the object of credit, the size of the loan, the solvency of the borrower, and it should not exceed 10 years from the date of its provision.

The term of development of loans related to construction, reconstruction, overhaul of facilities should not exceed 2 years. The term of disbursement of loans granted for the purchase of houses, apartments, etc. should not exceed 2 months.

Individuals repay loans within the time limits set by the term commitment, by transferring funds from a personal deposit, deposit account, mail or cash transfers.

The dynamics of lending can be traced in table. 1-3 [29, p. 42-43]. During 1993 the volumes of long-term and short-term loans granted increased rapidly (by 7.7 and 3.6 times, respectively, compared to 1992). This is due to an increase in the maximum amount of loans issued, which in turn led to a significant increase in prices for goods and services. At the same time, the number of borrowers decreased sharply.

Table. 1. Long-term consumer loans provided by the Savings Bank of Ukraine








The amount provided

loan *















Put into operation

residential buildings pcs

with the participation of loans

Oschadbank sq. m









* Loans granted in 1993-1994 were provided in million rubles, in 1996-1998 – in hryvnias.

Table. 2. Short-term consumer loans provided by the Savings Bank of Ukraine








The amount provided

loan *







Number of borrowers







* Loans granted in 1993-1994 were provided in million rubles, in 1996-1998 – in hryvnias.

In 1992-1993, long-term consumer loans prevailed among Sberbank’s consumer loans. But since 1994, the situation has changed dramatically: long-term loans were only 29.5%, and in 1995 – 28.69%.

By |2021-02-19T12:05:13+01:00April 13th, 2020|blog|
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