Provision of credit requires compliance with legal norms. The main thing with this is to check the solvency of the borrower and the explicit wording of the conditions of the loan. Checking the solvency of the borrower involves the examination of the client, its status and nature activities. At the request of the lender the borrower must provide economic and financial instruments and indicators necessary for financial analysis. About credit and financial analysis will be discussed below. What can you do to ensure the loan? In terms of distinguish the following types of credit: collateralized; secured bail; secured a written commitment; based on personal trust.
With a loan secured by a pledge, the debtor (borrower) gives the creditor (lender) at the time the loan any property to the condition that Failure to return the loan in time this property sold by the lender. It is usually assumed that in case of bankruptcy of the borrower and the sale of its assets to satisfy other creditors' pledge is property is not included. Of the amount received from the sale of collateral, the lender takes part due to him (including interest on the loan), and the rest goes to the satisfaction of other creditors. Pledge depending the nature of the mortgaged property may be the following types: a pledge of property or things; mortgages; deposit products; mortgage securities. Mortgage loans (primarily land) is mortgage, all other types of collateral are called collateral. Mortgage differs from the pawn that pledged assets (land, buildings) at the time the credit is available to the borrower.