Long-term loans can be provided for the formation of fixed assets.

by terms of use; on security; by degree of risk; by methods of provision; by maturity.

According to the terms of use, loans are divided into:

term, ie loans granted for a period specified in the contract. In turn, they are divided into short-term (up to 1 year inclusive), medium-term (up to 3 years) and long-term (over 3 years). The term of the loan, as well as interest for its use (unless otherwise provided by the terms of the loan agreement) are calculated from the moment of receipt (crediting to the borrower’s account or payment documents from the borrower’s loan account) to full repayment of the loan and interest for its use. Short-term loans can be provided by banks in the event of temporary financial difficulties arising from the costs of production and circulation, not secured by the receipt of funds in the relevant period. Medium-term loans can be provided to pay for equipment, current expenses, to finance capital investments. Long-term loans can be provided for the formation of fixed assets. The objects of lending can be capital expenditures for the reconstruction, modernization and expansion of existing fixed assets, new construction, privatization and more. demand loans – loans issued for an indefinite period and which at the request of the lender must be repaid at a specified time. If the lender does not demand repayment, the loan is repaid by the borrower within a period determined by him. overdue loans are loans for which the repayment period established by the loan agreement has expired. deferred – loans in respect of which, at the request of the borrower, the repayment terms were postponed to a later date.

Specific terms of use of loans are determined in the loan agreement, based on the terms of the credited event, its payback and other conditions.

If the borrower is unable to repay the loan and interest on it within the period specified in the loan agreement, if the measures taken to repay the loan in time were ineffective, the bank may provide the borrower in some cases deferred repayment at the written request of the borrower. Simultaneously with the application, the borrower submits to the bank specific measures to repay the loan, indicating the amounts and terms of implementation. If the relevant institution of the bank decides to defer the repayment of the loan, then an additional loan agreement is concluded, the terms of the guarantee, surety are reissued, the reality of the mortgage is revised, etc.

The interest rate on deferred loans is increased in accordance with the loan agreement. If the client applies to the bank with a request to re-extend the loan repayment, the bank should conduct an in-depth analysis of its economic and financial activities, the results of which determine the appropriateness of this measure (usually, the borrower’s application for additional loan repayment prolongation) its financial activities and can be satisfied only in exceptional cases). If the bank refuses to grant a deferral of loan repayment, the bank exercises its right to collect the loan and interest thereon with the direction of collection on the collateral accepted upon its issuance, in the manner prescribed by law.

At the same time, an increased interest rate is set on unsecured loan debt. In case of refusal to pay debts on loans, the bank collects debts in the claim-call order. If the measures developed in granting the loan repayment deferral did not ensure the repayment of the debt, it is attributed to the overdue account. In case of overdue debt, the bank institution on the same day repays the debt at the expense of the guarantor or guarantor.

If the loan agreement did not provide a guarantee or surety lab report writer.org, the bank the next day submits to the borrower a claim for repayment of overdue debts and the sale of collateral. At the same time, the bank notifies the client of the daily penalty for late repayment of the loan and interest in the amount stipulated by the agreement and the current procedure, offers to immediately (within five days) to take measures to repay overdue debts no later than 30 calendar days. in case of non-payment of the debt within this period, the materials will be submitted to the arbitral tribunal.

The peculiarity of the current situation in Ukraine is that many banks (even medium and large) did not provide medium-term (not to mention long-term) loans for the entire period of its existence. The main resources and the most qualified personnel were concentrated on settlement and cash service of clients, operations on purchase and sale of currency, on the stock exchange – with bonds of the state internal loan and short-term crediting. The experience of the staff and the infrastructure subordinated to this task do not quite correspond to the work with time deposits and especially on medium-term and long-term investment lending.

Most banks will need time and significant organizational efforts to develop infrastructure, train staff, collect and process information, and work out procedures for preparing, selecting and monitoring investment projects. Initially, due to the lack of necessary experience and infrastructure, as well as general and structural uncertainty in the real business sector, the quality of medium-term loan portfolios in many banks will mostly be quite low.

Under Ukrainian law, a loan granted for a period of more than three years is considered long-term and requires the bank to have borrowed funds in similar amounts and for a similar period. The trend of the bank’s liabilities indicates that an increasing number of legal entities place deposits in banks, even for a shorter period. As for own funds, banks have the opportunity to invest them in more profitable and less risky assets. Due to this, it is especially difficult to get a loan to purchase equipment with a payback period of more than nine months, to finance capital investments and the formation of fixed assets of the enterprise.

Consider the types of loans provided by commercial banks in Ukraine, depending on the collateral.

There are the following types of loans:

secured by collateral (property, property rights, securities); guaranteed (by banks, finances or third party property); with other security (surety, certificate of insurance organization); unsecured (blank). Blank loans are provided only under the obligation of the borrower to repay the loan at a higher interest rate to reliable borrowers who have stable sources of loan repayment and proven credibility in banking circles.

The main forms of pledge are pledge of property, property rights, pledge of securities. The entire legal side of the pledge is regulated by the Law of Ukraine “On Pledge”.

Banks try to reinsure when working with collateral, so the property is accepted as collateral:

the cost of which can be estimated; which can be stored for a long time and its storage is relatively inexpensive; prices for which are stable; to implement which can be in the shortest possible time.

Collateral is recognized as a way to secure the repayment of the loan, when the lending bank in case of default by the borrower to repay the loan and pay interest on it has the right to satisfy its claims on the value of collateral mainly to other creditors , under applicable law.

The pledge agreement must be concluded between the pledgee bank and the mortgagor in writing and provide: the essence of the pledge claim, its size, terms of the obligation to repay the loan and interest thereon, composition (description) and value of the pledged property , type of pledge (it should be provided that the mortgaged property remains with the mortgagor or is transferred to the possession of the mortgagee, the location of the collateral, the obligation to insure the mortgaged property, as well as other conditions).

The following can be accepted as collateral for the loan by the bank:

1. Immovable property owned by the mortgagor (not necessarily the borrower), which is free from other obligations and from the prohibition of alienation.

The mortgage agreement (pledge of the enterprise, construction, buildings, other objects directly related to the land, together with the relevant land plot or the right to use it) must be notarized. The contract must provide that the notary office at the same time with the certificate of the contract imposes a ban on the alienation of the subject of the mortgage.

2. Vehicles, as a rule, new or almost new (2-3 years), and the vehicle, as well as documents for it are transferred to the bank for safekeeping for the term of the pledge agreement.

In cases where the subject of the pledge is real estate, vehicles, space objects, goods in circulation or processing, the pledge agreement must be notarized on the basis of the relevant legal documents.

The mortgagor may not be the borrower, but a third party (property guarantor), to whom the subject of the pledge belongs on the rights of ownership or full economic management.

In determining the value of the property transferred as collateral, it is necessary to proceed from its book value (taking into account revaluation and discount) and the possible sale price.

The value of the mortgaged property must be sufficient to repay the loan, interest for its use, penalties under the loan agreement, storage costs of the mortgaged property, as well as value added tax, which is paid from the turnover of the collateral, and other costs.

3. Securities or corporate rights (shares, bonds, shares in the statutory fund of third parties, certificates).

The most reliable securities are the shares of the lending bank or government bonds.

The liquidity of other securities and corporate rights is not always clear and requires careful study in each case. If the bank agrees to provide a loan under such collateral, then with large financial losses for the client.