Mortgage is a form of bond in which real property remains the property of the debtor and the creditor in case of default of its obligation to the latter acquires the right to obtain satisfaction through the implementation of the property. We must distinguish the concept of mortgage and mortgage lending, in which the bank under a mortgage issues the credit. Mortgage credit is one of the components of the mortgage system. Mortgage is also an existing mortgage of immovable property owner to get them a loan or a bond that will be directed to either repair or construction, or for other needs at the discretion of the borrower-mortgagor. Credit is given usually for a long time. The interest rate on your mortgage is usually lower than for other types of credits, especially for low-risk assessment, which, for example, can contribute to the low ratio of loan amount to the appraised value of real estate, liquidity and other factors. Typically, the bank advances to the borrower a mortgage credit are less stringent requirements than for other types of credits, though the usual practice is to check the income requirement of collateral security, inspection by accredited appraisers' real estate appraisal, sometimes checking continuous years of service and other activities that increase the security of the transaction. Bank loans are classified into the following groups. For groups of borrowers are distinguished: the credit entities and the public sector, state and local governments, banks and no banks. For the purposes of credit release: an increase in fixed and current assets of the borrower, the consumer needs to pay salaries, etc. The timing of use it is divided into short-term loans (up to one year), medium (one to six years) and long-term (over six years). By the size of bank credits are divided into small, medium and large. Small credits are mostly designed for populations, medium credits - for small and medium-sized - for businesses and large corporations. The role of credit is important in order to replenish the working capital requirement in which each enterprise is not stable. It changes depending on operating conditions, market, natural, climatic, political, and so on. The role of credit is great for the reproduction of fixed assets. Using the loan, the company can improve, to increase production significantly faster than in its absence.
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