Credit, loans or loan. What is the difference?

In the minds of many people, the words of a loan, loan, credit represent the same action - borrowing a certain amount of money on the return and compensation. That is, when the return of the debt the borrower is obliged to return a large sum of money than borrowed by paying a certain amount of interest. But in fact these three concepts have different meanings.

What is a loan?

A loan or a loan - a free form of borrowing money. Loan referred to the transfer of assets or funds owned by the borrower by the lender. At the same time the subject of the loan must be returned in full if a loan given things, their return should be appropriate in quality and quantity. The Civil Code says that for registration of the loan is necessary to make so-called loan agreement. The first loan agreement was developed in the V century . Outwardly, it was very simple, but profoundly captures the essence of the loan: get the funds the borrower assumed the obligation to repay the debt in full after a certain amount of time. A feature that characterises the loan as a form of legal relationship is that the borrower receives the right to ownership of the loan for the entire period of use,  the borrowing of money or assets it has the right to dispose of at will. Therefore, in case of loss or damage to the subject of the loan, the borrower, according to the loan agreement, the lender undertakes to return the same quality and purpose things in an appropriate amount. This means that things are on loan should be interchangeable, they do not have to be unique, one-of-a-kind, unique, exclusive, and so on. These things include: food, consumer goods, fuel, construction materials and others. Unique jewelry collection of cognacs, original works of art, in turn, can not be the subject of a loan, since in case of loss, they can not be recovered.

What is a loan?

According to civil law the loan - a contract that describes the terms of the temporary use of the property at the same time - for free. Participant loans are the organisations and citizens. Their relations are governed by the ratio of the loan. If the subjects of relations of the loan are the organisation, their relationships are governed by the loan agreement. The most common of these is the bank loan contract.

What is credit?

Credit - a loan, which is expressed in the form of money and the use of which must be paid. Payment for use of the loan - the interest rate banks or other lending institutions. Credit is given the lender to the borrower for a certain period, in this case - different types of loans have different terms of crediting. Loans are short-term, medium-term and long-term. Unlike other forms of borrowing loan can be targeted , it is given to the borrower for a specific purpose.

The difference between a loan or a loan from the credit?

The loan is different from a loan in that the body of the loan is only money, and the body of the loan can be both cash and other items. Another difference from the credit loan is that the loan - grant the form of debt. That is, at the conclusion of the credit agreement it made the conditions for payment of annual interest on the loan, and at the conclusion of the loan agreement is not discussed due to the fact that between the borrower and the lender, there are close to or trust. When you make a loan transfer of funds through a financial intermediary, a bank or other institution.