Credit line

Quite often in banks there is such a product as a line of credit. It stands out from the usual lending methods and has a lot of distinctive features. For some clients, a line of credit is a lifeline, but for others it can be difficult to use. Let us consider in more detail what a credit line is, why it is needed, who uses it, how it can be used, what types are there, advantages and disadvantages of standard loans?

What is a credit line?

It represents an obligation of a credit institution to provide a client with a certain amount of a loan within a certain period of time. Unlike a regular loan, the client can receive money in installments or after a specified period of time. The terms of such issuance and all obligations of the parties are negotiated at the time of conclusion of the loan agreement. Most often, conditions are set individually for each client. A distinctive feature of this type of loan is the permanent relationship between the borrower and the lender. In practice, banks open a credit line to regular customers with a good reputation, a positive credit history and high solvency.

Who uses credit lines?

Frequent customers for this product are companies that periodically need credit funds. In order not to collect a package of necessary documents every time a loan is needed, the company opens a credit line in a servicing bank. In this case, she can take a certain amount and return it. For example, a company is engaged in trade, constantly purchasing material and selling products. The funds from the sale come a little later than you need to pay for the material. In this case, the organization takes funds from the open line, pays the suppliers, and then returns the money received from the buyer.

A private person can also open a credit line for himself, for example, for studying at a university. The bottom line is this: the training period is 5 years, and the cost of training per year is 100,000 rubles. The client draws up a credit line for 500,000 rubles, but the money is not used immediately, but in installments, for example, 50,000 rubles. every six months until the set limit is exhausted.

The most common example of a line of credit is a credit card with a limit. In this case, the client can take the amount he needs and return it at the set time. As a result, the limit is restored and it can be used again. With proper use, such a line can work for a long time.

Types of credit lines.

In banks, there are several types of loan lines:

• Non-renewable. It involves the provision of a specified amount of money after a certain point in time. For example, a client wants to purchase new equipment, but has not yet decided on a supplier. To do this, he concludes an agreement on the provision of the required amount. While the search is in progress, interest on the loan is not paid (after all, the client has not yet used the money). As soon as the money is transferred to the payment account, the loan repayment period begins. It will not be possible to take a new loan from funds already paid.
• Limit. In this case, the rules for providing a certain tranche (size and term) are stipulated. For example, each month the client needs the Nth amount. If in one of the periods he did not use it, then he must still pay a commission. This option is convenient for entrepreneurs who need to pay for individual consignments of goods, for example, throughout the year. Up to the established limit, the client can use the tranche. Once the limit is reached, the money must be returned.
• Renewable. It allows you to receive funds as they are needed and repay as far as possible in part or in full. For example, a company purchases material and, as goods are manufactured, sells products. When buying, the client takes part of the funds from the dedicated line, and when selling, he returns the funds, reducing the amount of debt. A similar line is used on credit cards. Using the allocated limit and returning it on time, avoiding delays, the period of this lending can be eternal.
• Onkolnaya. With this line, the return of a part of the loan granted restores the limit to the original one. For example, a company has issued an on-call line for 10 million rubles. Of the allocated amount, only 7 million rubles were needed. After some time, the money is returned, and the client can again take 10 million rubles.
• Contact-correct. In this case, a special account is opened for the client, from which he can take borrowed funds, and when money is received on it, they will be debited to pay off the debt. For example, a company transfers funds from an account to a supplier, and then money is received from the buyer to the same account, and the line is automatically redeemed.

Thus, each client can choose for himself the type of credit line that will be more comfortable for him.

Features of the credit line.

A credit line is a rather convenient product, however, you will have to pay for any comfort. Here is its reverse side:

• Credit is opened at an interest rate that is higher than for ordinary consumer loans (15-30% on average). The highest percentage is on credit cards (up to 50%). The rate can be fixed or floating (set for each transaction separately).
• For opening a line, the bank charges a commission (1-2% of the amount). The commission can also be charged for the fact that the client did not use the funds provided, as well as for various "operational services", for example, for maintaining an account with a renewable limit.
• Technical overdraft. Theoretically, it is impossible to go beyond the established amount, however, in practice, a technical overdraft (overlimit) may arise, for which the bank will not miss the opportunity to take a fine.
• If unreliability is suspected, the bank can "block" the credit line. For example, a line for a mortgage is open. While the client is looking for an apartment, the bank discovers that some kind of certificate is missing, or the borrower has “spots” in his credit history. As a result, it can turn out that the client has already found a suitable option, and even made a deposit, and the bank refused to provide a loan. Businessmen in this situation may even be on the verge of ruin.
• For longer periods, liquid collateral may be required. For example, real estate, receivables, goods in warehouses, etc.
• A special repayment schedule and payment amounts provide for increased responsibility and discipline of the client.

Advantages and disadvantages of a credit line.

• Saving time. Often time plays an important role in transactions for customers, so even higher costs do not influence the decision to open a line.
• Interest is charged only on borrowed funds. If the client has taken a regular loan and does not need part of the amount yet, then he must pay interest on the entire amount taken.
• Due to the line, the client can increase his working capital, cover unforeseen expenses. For businesses, this provides an opportunity to reach new levels.

The disadvantages include the fact that with the slightest error in the fulfillment of obligations by the client, the bank can close the credit line at the most inopportune moment. The cost of servicing such a loan may be higher due to commissions. Only disciplined clients with a positive credit history and reputation can provide a line.

A credit line is a form of debt financing that involves the issuance of funds within the framework of a formalized obligation between the bank and the client. The agreement is valid for the period agreed by the parties, during which the borrower can withdraw the necessary amounts of funds in installments. Since this method of financing provides for optimal individual lending conditions, there are several types of credit line.

Non-revolving line of credit

A simple or tranche credit line is based on the concept of a cash disbursement limit. The borrower gets the opportunity to withdraw money during the period agreed in the contract. Access to funds will be open only once, so the financing scheme under consideration resembles a consumer loan.

Features of the tranche credit line:

1. The agreement with the bank clearly stipulates the conditions for using the current credit limit.
2. The parties agree on the size and term of each tranche within the framework of an individual payment schedule.
3. Payments are made at the request of the borrower in accordance with the schedule.
4. For an additional fee, you can connect the option of reserving unused funds.
5. After the last tranche is received (the credit limit is used up), the debt repayment stage begins.
6. Interest rates are charged only on the amount of money actually withdrawn by the client.
7. The contract is closed after the borrower pays the debt obligations in full.

It is not possible to reuse a non-revolving line of credit. To do this, you will have to deal with the procedure for renegotiating the contract. The opportunity to save money on interest payments attracts the attention of entrepreneurs planning a stage-by-stage financing of a commercial transaction through lending to the process of obtaining a tranche credit line. Until the limit is used up, the borrower, if necessary, can receive funds, increasing the level of solvency.

Examples of a non-revolving credit line for individuals:

• Mortgage for the purchase of real estate.
• Student loan for education.
• Car loan for the purchase of a vehicle.

Under the popular tranche line of credit, a medium or long-term agreement is usually concluded with the bank, which involves drawing up a schedule for receiving and returning money. The use of the considered method of financing in targeted lending with the use of collateral can significantly reduce costs.

Revolving credit line

A revolving line of credit is one of the most profitable lending methods, the process of obtaining which has distinctive features, reminiscent of the conditions for using a completely ordinary credit card. A feature of the renewable form of financing within the framework of the existing credit line is the use of a debt limit.

Revolving line of credit parameters:

1. Having returned the previously withdrawn money within the period established by the agreement, the borrower can take out a loan again without contacting the lender with a proposal to reissue the agreement or change its terms.
2. Repayment of the debt within the grace period provided by the bank significantly reduces the amount of interest payments.
3. You can return only a small part of the spent funds with interest and commission payments, so that the credit line is not automatically blocked due to delays.
4. The cycle of withdrawal and return of funds can last as long as the received credit line remains active.
5. Flexible lending conditions can be changed during the current transaction by agreement of the parties.

The best example of a typical revolving line of credit is a credit card, but this type of loan can also be arranged in the form of a special current account. A borrower who has performed well in the process of actively using a revolving credit line may qualify for an improvement in the parameters of the transaction. Some lenders are ready to extend the contract on more favorable terms for the client. Thus, avoiding delays in regular payments, the borrower gets the right to claim an increase in the duration of the transaction and the current size of the loan.

Benefits of a revolving line of credit:

1. The loan scheme is suitable to cover the current expenses of the borrower.
2. The lender usually offers multiple re-registration of the transaction.
3. Allows you to develop an optimal payment calendar, taking into account the personal needs of the borrower.
4. It makes it possible to increase the credit limit by timely repayment of the debt.

The period of revolving lending under certain circumstances can be several decades. Quite ordinary credit cards can be renewed many times by the client without renegotiating the contract. In this case, the credit limit may remain the same, but if the borrower meets a few simple requirements, the lender can significantly increase the loan amount or reduce the interest rate.

Tranche or revolving line of credit?

Regardless of the type of credit line, interest rates for the use of borrowed funds are always charged solely on the amount used by the borrower. The principle of operation of the agreement largely affects the parameters associated with the receipt and return of funds. In many cases, the revolving financing option is much more profitable than the tranche counterpart, since it greatly facilitates the process of obtaining and further using a credit line.

Before proceeding with the selection of the optimal form of lending, the borrower will have to study the information regarding the calculation of interest. Despite the advantages of each of the considered types of credit line, the presented banking products for individuals can be a very costly form of borrowing, especially if the borrower faces the risk of delinquency.

The interest rate on a credit line always depends on:

• The duration of the terms of the transaction.
• Estimated credit limit.
• The current credit rating of the borrower, calculated during the scoring process.
• The state of the credit history of a potential client.
• Presence/absence of collateral in the form of a pledge or surety.
• Purpose of the transaction.
• Attraction of additional paid services.
• Conditions for extending or renewing the loan agreement.

Of course, the convenience of using an active credit line cannot be questioned. This service allows the client to independently choose the time and amount of the loan within the limits established by agreement with the financial institution. Although the rate is usually high, additional terms of the transaction allow the client to save, for example, interest is charged only after the borrower receives the money.

In financial terms, there are the following differences between tranche and revolving credit lines:

1. The active use of a revolving line costs the borrower more than obtaining a tranche loan. On average, rates exceed 20%, and for instant credit cards they are usually above 50%.
2. For re-registration of the transaction with a non-renewable financing scheme, you will have to pay extra. Re-opening of a credit line in commercial banks involves the payment of a commission of up to 2% of the amount of the limit.
3. Users of a revolving line of credit face withdrawal fees.
4. The option of reserving funds within the framework of a tranche credit line is a paid service.

Late payments usually result in penalties. In the case of a revolving form of financing, there is also the risk of a technical overdraft, that is, the borrower unintentionally exceeds the amount of the established limit at the withdrawal stage.

Due to the wide variety of loan programs, Russian citizens always have a choice. Each of us, when applying for a loan, chooses the most favorable for him conditions and interest rates. With the advent of a credit line, banks not only replenished their own, but also opened up new opportunities for their customers.

General characteristics of the credit line

Credit lines- these are peculiar, having certain features. During the opening of a credit line for the client, the bank undertakes to issue the necessary amount of money in the currency chosen by the borrower within the time agreed in advance. And get a loan the borrower can not once, but as much as he needs it. When opening a credit line for its client, the creditor bank sets a certain amount, over which the borrower cannot spend, as well as repayment terms of the issued cash loan. Within the established limit and terms, the borrower can independently dispose of his credit resources, commensurate with his capabilities and needs. When concluding a loan agreement, the client must pay attention to the following points:

• Loan terms (during which the borrower must fully repay the loan debt);
• The size and type of interest rate (on a loan);
• Credit line report time (360 or 365 days can be used to calculate bank interest);
• Credit limit amount ( maximum loan amount).

Credit line gives a chance to a bank client to take a loan, regardless of how much money he has in his account (that is, having a negative balance, you can get an additional loan from the bank). When funds are received on the borrower's current account, the withdrawal of money to repay the loan occurs automatically (first of all, a certain amount of money repays the accrued interest on the loan, and the rest of the funds go to repay the main body of the loan). If the borrower decides close a credit line, he is obliged to notify the bank and repay the existing debt, taking into account interest.

Types of credit lines

There are several types of credit lines:

1. Non-revolving (simple credit lines, involving a one-time loan within the established limit);
2. Revolving (revolving credit lines allow the bank's client to use the loan many times, as well as repay it in installments);
3. Framework (during the execution of such credit lines, the bank issues a loan to the borrower, through which the client can pay for supplies from one supplier or finance the received loan funds for any economic project);
4. On-call (upon receipt of funds to the current account of the borrower, the funds are redistributed to restore the credit limit for the same amount);
5. Current accounts (when opening such a credit line, the bank creates a special one for the client, and loans will be automatically repaid from it with each receipt of funds);
6. Credit lines with a disbursement limit (credit loans with an established limit on the amount of the loan);
7. Credit lines with a debt limit (credit lines with a limit on the amount of credit debt).

Advantages and disadvantages of a credit line

Unlike a loan, a credit line is issued to a bank client exactly as many times as he needs it. Among the positives line of credit is worth highlighting the following:

• The borrower is given the opportunity to decide for himself how much credit he can take (according to the time limits specified in the agreement and the established credit limit);
• The borrower can use credit resources in any amount (keeping within the limits of the maximum loan amount and loan terms);
• To repay a loan debt, you do not need to go to the bank (it is enough to replenish your account via the Internet and the withdrawal of funds will occur automatically).

However, there is also negative points in the design of a credit line:

• If the client has not spent the loan money up to the established limit amount, penalties may be imposed (for each day the bank does not use the required amount, the bank will charge a penalty);
• You can extend the credit line only if the debt is fully repaid and there is no negative balance on the account.

In conclusion, we remind you that before opening a line of credit, think about whether it will be beneficial for you or not.

The financial market is oversaturated with offers from banks in terms of lending to legal entities. Often, business leaders face the question: “Which loan is better to choose? What is the difference between an overdraft and a line of credit? What are the advantages and disadvantages of this or that type of lending?

urgent loan

or, as it is also called, a one-time loan is a type of loan that is provided to the Borrower at a time in the full amount. Term credit is divided into long-term (more than 3 years), medium-term (from 1 to 3 years), short-term (up to 1 year). Most banks practice short-term loans. Repayment of this loan can be carried out according to the schedule or in a lump sum in full at the end of the loan term. It all depends on the specifics of the Borrower's activities.

Online calculator of your consumer loan - http://dengiclick.kz.

The purposes for which an urgent loan is provided may be different: refinancing of loan debt, replenishment of working capital, purchase of fixed assets and real estate, etc. Using such a loan to replenish working capital does not seem to be very profitable: accounts receivable for less than 180 days, you, firstly, will have an overpayment on loan interest, and secondly, it is highly likely that the bank will include a repayment schedule in the contract, starting from 6-8 months of lending, so you will have to withdraw money from circulation ahead of schedule.

Term loan is convenient for the intended use of funds not related to working capital, as well as for the refinancing of other loans on more favorable terms.

Overdraft

- This is a special form of an urgent loan, which is provided to complete settlements with counterparties in the absence of funds in the current account. An overdraft limit is set for 12 months in the amount of 30-50% of the company's monthly turnover on the bank account of the main bank or all banks (at the discretion of the lending bank). Overdraft is best for trading companies. The purpose of an overdraft is to cover cash gaps.

The main advantage of an overdraft before all other types of lending is that the bank does not require collateral.

There are two types of overdraft:

Overdraft with "zeroing"

With this type of overdraft, debt repayment is carried out immediately after the receipt of funds to the borrower's settlement account by writing them off during the day, without the prior consent of the Borrower; As a rule, the write-off is carried out at the end of the business day. For example, on 01/01/13 you are within the overdraft limit of 10,000 thousand rubles. took a loan for 5,000 thousand rubles; On January 10, 2013, 3,000 thousand rubles were received on the company's current account; on the same day, the bank will fully write off the funds to pay off the debt on the loan. When repaying the next amount of debt, the available limit is automatically renewed within the validity period of the credit limit, without any documents.

The main disadvantage of an overdraft "with zero" is that the company must constantly plan payments and in the event of a "financial hole" will not be able to use leverage, because. funds are debited on the day they are received in full automatically to pay off the debt on the loan.

Overdraft "without zeroing"

This type of overdraft has a so-called continuous debt period, that is, a tranche. A tranche is the period during which the company is obliged to repay the debt. As a rule, the tranche period is set for a period of 30 to 60 days, in rare cases - up to 90 days. This means that during the tranche period you use the loan funds without repaying the debt before the end of the tranche period. For example, on 01/01/13 you are within the limit of 10,000 thousand rubles. took 5,000 thousand rubles. with a tranche term of 30 days; On January 15, 2013, 5,000 thousand rubles were received on the company's current account; they are not written off by the bank to repay the loan, since the repayment period will come only on 30.01.13. At the same time, if you want to repay the loan earlier in order to save on interest, a written application for early repayment is sufficient. After the loan is repaid, the next day the overdraft limit is automatically renewed.

This type of overdraft is practically the same as a revolving credit line (ON). When providing ON, the limit period can be increased up to 2 years, and the tranche period up to 360 days. Like VKL, an overdraft without resetting can be provided not only to cover cash gaps, but also to replenish the company's working capital.

The main plus of an overdraft "without zeroing" is that the company has leverage and is not obliged to repay the debt before the tranche date.

An example of calculating the overdraft limit

In different banks, the formulas for calculating the overdraft limit may vary. In all cases, the following main criteria are taken into account:

• the number of counterparties per month (at least 10 or 20, etc.);
• the number of payments from one counterparty per month (at least 20, etc.);

At the same time, turnovers are taken into account either for all customer accounts, or in the main servicing bank, or only in that creditor bank.

As a rule, the limit on an “incoming” overdraft (when a borrower takes a loan from a bank that does not serve him with an obligation to transfer a certain amount of turnover to this bank within 3 months) is no more than 30% with a subsequent increase.

The requirements for the business reputation of the borrower and his financial condition are also taken into account - the same as for other types of lending.

Here is an example of calculating the overdraft limit:

L=B*P , where
B - average monthly receipts to the settlement account minus receipts of credits and loans (some banks carry out calculations based only on receipts of revenue);
P - % of overdraft limit (not more than 50%).

Thus, the maximum amount of an overdraft is 3,200 thousand rubles. Once again, we note that the requirements for the number of payments and receipts in each bank are different.

Credit line

allows the Borrower to use the loan within the unused limit established by the agreement. Lines of credit are in turn divided into revolving lines of credit (RC) / revolving lines of credit and lines of credit with a disbursement limit / non-revolving lines of credit (NCL).

Revolving credit line

ON is an overdraft “without zeroing”. At the same time, unlike the latter, the bank will require collateral. As with an overdraft, the bank sets a debt limit and the terms of the tranche, within which the loan is issued and repaid, for the entire duration of the line opening agreement. As with an overdraft, the repayable part of the loan increases the free balance of the debt limit (the credit limit is renewed). Some banks offer a continuous debt period (tranche) on the condition that the loan period does not exceed 12 months. This means that you can within the specified 12 months. receive and repay a loan within the credit limit at any time. VKL, like an overdraft, is perfect for trading companies or organizations with a short production cycle (up to 180 days) in order to cover cash gaps or increase working capital.

ON allows borrower to save on interest. Unlike an overdraft, here it is possible not to set a continuous debt period and increase the loan term by more than 12 months. As a disadvantage of this loan product, it should be noted that there is a high one-time commission for issuing (usually from 0.5 to 1% of the limit amount) and providing a loan within the settlement limit (the bank determines the loan amount based on the turnover of receivables and payables, settlement conditions with counterparties, the size of the annual revenue, the turnover of goods or finished products).

A number of banks provide the so-called universal revolving credit line. This product is similar to a revolving line of credit with a period of continuous debt. The only difference is in the interest rates set in the applications that the borrower submits to the bank to receive the next tranche. The interest rate is not fixed, but is formed based on the situation on the financial market - it can be either lower or higher than the fixed one. It all depends on the established period of continuous debt will be set - 30, 180 or 360 days. The shorter the period, the better the rate.

Example of calculating the limit on ON

Unlike an overdraft, the GTL does not involve the use of a standard formula or standard basic criteria. Different banks define the limit differently; most banks do not even have such a formula: the limit is determined based on the amount of revenue, receivables turnover and the client's feasibility study.

Here is an example of calculating the ON limit:

Limit ON = The amount of average monthly receipts (credit turnover) of funds on the Client's settlement accounts (including in other banks) * term of tranches (number of months) / 2.

Calculation of average monthly receipts is carried out on the basis of revenue receipts to r / accounts opened with banks over the past 6-12 months (each bank takes them into account individually).

The tranche term is calculated based on the operating cycle.

Operational cycle = DZ equipment + GP + raw material equipment.

Calculation of the operating cycle, thousand rubles:

	Article title	Beginning of period	End of period		Number of days in the period, days	Turnover, days
	Receivables
	Finished products
	Operating cycle

Since the operating cycle is 90 days, the maximum number of tranches per year = 4 = 365/90.

Calculation of the ON limit provided for 365 days, thousand rubles:

Thus, the maximum loan amount that can be granted with a continuous debt period of 90 days is 33,460 thousand rubles.

Non-revolving line of credit

When opening an LCL, a loan is granted within the established limit and within the loan withdrawal period. At the same time, the repaid part of the loan does not increase the free credit limit, as it allows ON. As a rule, the sampling period does not exceed 6 months. from the moment of signing the loan agreement, and the loan is repaid according to the schedule - monthly or quarterly in equal installments, taking into account the seasonality factor.

The advantage of NKL compared to ON is that the amount of credit can be much larger and the term is longer (unlike ON, the credit limit is calculated based not on the need for working capital of the company, but on the purpose of using the loan and the current / planned revenue from a particular transaction / using the loan for its intended purpose) . In other words, the NCL is provided as a directed loan and not a working capital loan.

This type of product is best suited for companies with a seasonal nature of activity, construction companies, developers, as well as companies with a long production cycle. As a rule, during the NCL, the bank without fail asks the Borrower to provide a feasibility study (feasibility study) of the loan, which details the purpose of the loan, the economic efficiency of the transaction, the sources of repayment of the loan, the cash flow forecast for the loan period, the main economic indicators of the project. LCL is suitable for such purposes as the purchase of fixed assets, the modernization of production in the short term, a one-time repayment of accounts payable, the purchase of goods for storage in order to maintain an assortment or "for future use".

As negative factors of NCL, the following can be noted:

commission for an unused limit - as a rule, 0.5% of the amount of an unselected loan;

the loan is not renewed within the limits of the credit limit;

strict control by the bank over the targeted use of credit funds;

high risks of early loan withdrawal in case of deterioration of financial indicators for the feasibility study of the project provided to the bank at the time of the loan.

Finally: it cannot be said that any type of loan is better than others in all respects - it all depends on the needs and capabilities of your company. At the same time, you, and not the bank, can objectively evaluate all the pros and cons, because you know your business better than anyone else.

The bank may try to impose a product on you, based not on your needs, but on the capabilities of the bank itself. In some cases, the bank does not agree on such goals as repayment of loans and borrowings from third parties, the purchase of shares, the repayment of "hanging" creditors, and will offer you a type of loan that "fits into banking methods" but does not at all meet the needs of the borrower. As a result, you, out of hopelessness and with hope for a brighter future, agree to the loan terms offered by the bank, and then, to the thunder of applause of collectors and arbitration managers, “do not fit” into this product and go for an extension or delay.

We want your risks to be minimal!

To date, there are a large number provided by commercial banks. They are designed for various conditions for conducting commercial activities of an economic entity - the borrower. Therefore, it is important for an individual entrepreneur not to make a mistake in choosing his lending option and to choose exactly the program that best suits the conditions of his business.

It should be noted that opening a credit line is a more convenient and profitable way of lending for merchants than issuing a one-time loan, which allows you to use the loan when necessary and pay interest on the loan only for the actual period of using the funds.

What is a credit line? What are the conditions for its opening and use? What types of commissions should an entrepreneur pay?

Credit line

According to Art. 30 of the Law on Banks and Banking Activities (Federal Law of 02.12.1990 N 395-1), relations between credit institutions and their clients are regulated by agreements. Under a loan agreement, the bank undertakes to provide funds (credit) to the borrower in the amount and on the terms stipulated by the agreement, and the borrower undertakes to return the amount of money received and pay interest on it.

Note. The rules on loan agreements established by § 1 "Loan" of the Civil Code of the Russian Federation (clause 2 of Article 819 of the Civil Code of the Russian Federation) apply to relations under a loan agreement.

The procedure for providing (placement) of funds to bank customers is approved by Regulation N 54-P (Approved by the Bank of Russia on August 31, 1998 N 54-P). The list of methods by which credit institutions provide funds to bank customers is defined in clause 2.2 of this document and includes:

• one-time crediting of funds to a bank account or their issuance to a borrower;
• opening a credit line to the borrower.

Credit line- this is a legally formalized obligation of the bank to issue a loan to the client in the amount specified by the agreement and within the agreed time. It differs from a one-time loan in that the entrepreneur, in the event of its opening, acquires the right to receive and use funds not once on the day specified in the contract, but within the stipulated period, in installments (tranches), when he needs it, but within the established limit. At the same time, the issuance limit - the maximum possible amount of tranches provided to the borrower - is determined by the bank, set individually and fixed in the terms of the contract. The amount of the loan itself depends on the solvency of the merchant and his credit history, term and purposes of lending.

Note. Interest for the use of borrowed funds is paid based on the amount of the tranche received.

The main advantage of an open line of credit over a regular loan (one-time in full amount) is the percentage savings or, more precisely, its final cost. Judge for yourself: it is necessary to pay only for the actual period of use of borrowed funds, and not for everything at once, but in proportion to each tranche received. That is, as soon as the tranche is repaid, the accrual of interest stops.

And if, for example, you issue a regular loan for a year, then interest will need to be paid for the period of "use" of borrowed funds (the term of the contract).

The credit line is opened under the following conditions:

• the total amount of funds provided does not exceed the maximum amount (limit) specified in the agreement (withdrawal limit);
• during the term of the agreement, the amount of the client's one-time debt does not exceed the limit established by this agreement (debt limit).

Banks have the right to limit the amount of funds provided under an open credit line by simultaneously including both of these conditions in the relevant agreement, as well as by using any other additional conditions for this purpose with the simultaneous fulfillment of the above requirements.

The principle of the credit line, interest calculation

The principle of the credit line is prescribed in the loan agreement - the main document in the relationship between the bank and. It determines, in particular, the subject of the agreement, the conditions for granting a loan, obtaining and using tranches, the amount of the interest rate on the loan and the procedure for paying interest, and especially the repayment of debts to the bank.

A credit line can be non-revolving (tranche) and revolving (revolving).

Meaning non-renewable credit line lies in the fact that the terms of the agreement clearly stipulate the size, term of receipt and date of issue of each tranche up to the end of the agreement on opening a credit line. This line of credit, or line with a withdrawal limit, will not allow an individual entrepreneur to reuse the funds after all tranches have been received by him.

Example 1 . IP Vorontsov V.N. (borrower) and OAO Kombank (creditor) on March 1, 2013 entered into an agreement on opening a credit line with an established disbursement limit of 10,000,000 rubles. for a period up to 30.09.2014 (non-revolving credit line). For using the loan, the borrower pays interest to the lender in the amount of 18% per annum. Payment of interest for the corresponding interest period is made on the last day of this period. The loan is issued in separate tranches:

• 3,000,000 rubles - 03/01/2014;
• 3,000,000 rubles - 05/01/2014;
• RUB 4,000,000 - 07/01/2014.

• the first tranche for the period from 03/02/2014 to 04/30/2014 will amount to 88,767.1 rubles. (3,000,000 rubles x 60 days x 18 / 365 x 100);
• the second tranche for the period from 05/02/2014 to 06/30/2014 - 177,534.2 rubles. (6,000,000 rubles x 60 days x 18 / 365 x 100);
• the third tranche for the period from 07/02/2014 to 09/30/2014 - 295,890.4 rubles. (10,000,000 rubles x 60 days x 18 / 365 x 100).

The calculation in example 1 applies if the borrower draws on the funds until the end of the non-revolving credit line. But if the terms of the agreement provide for the repayment of the loan according to a certain schedule (it is negotiated individually between the bank and the entrepreneur), then interest is charged only for the period when the borrower used the funds.

The situation is somewhat different with renewable credit line (as it is also called, credit line with a debt limit). In this case, the borrower himself chooses how much credit he needs to receive from the lender and at what point. The debt limit is reduced in accordance with how much money the borrower has already received, but is restored in proportion to the amount that he repays during the period of the credit line.

This type of credit line attracts borrowers by the fact that the funds returned to the bank can be received when necessary and in any amount within the limits of the credit line, while there is no need to adhere to the established schedule for issuing the next tranche.

Let's look at a few examples.

Example 2 . Let's use the conditions of example 1, specifying that the entrepreneur has a revolving line of credit. At the same time, the first tranche was received on March 1, 2014 in the amount of 5,000,000 rubles, which was fully repaid on April 30, 2014.

On 07/01/2014, the entrepreneur received the second tranche in the amount of 7,000,000 rubles.

Interest is calculated from the actually received loan amount for the period of actual use of funds. The amount of accrued interest for the use of borrowed funds:

• the first tranche for the period from 03/02/2014 to 04/30/2014 will amount to 147,945.2 rubles. (5,000,000 rubles x 60 days x 18 / 365 x 100);
• of the second tranche for the period from 07/02/2014 to 09/30/2014 - 207,123.3 rubles. (7,000,000 rubles x 60 days x 18 / 365 x 100).

Example 3 . We will use the conditions of example 2, specifying that the first tranche received on 03/01/2014 in the amount of 5,000,000 rubles was partially repaid on 06/30/2014 in the amount of 1,000,000 rubles.

On 08/01/2014, the entrepreneur received the second tranche in the amount of 6,000,000 rubles.

The amount of accrued interest for the use of borrowed funds:

• the first tranche for the period from 03/02/2014 to 06/30/2014 will amount to 295,890.4 rubles. (5,000,000 rubles x 120 days x 18 / 365 x 100);
• for the period from 07/02/2014 to 07/31/2014, taking into account the partial repayment of the first tranche - 59,178 rubles. ((5,000,000 - 1,000,000) rubles x 30 days x 18 / 365 x 100);
• for the period from 08/01/2014 to 09/30/2014, taking into account the remaining part of the borrowed funds of the first tranche and the receipt of the second tranche - 295,890.4 rubles. ((4,000,000 + 6,000,000) rubles x 60 days x 18 / 365 x 100).

Example 4 . Let's use the conditions of example 1, specifying that the parties have entered into a regular loan agreement.

Interest expenses for the period from 03/02/2014 to 09/30/2014 will amount to 887,671.2 rubles. (10,000,000 rubles x 180 days x 18 / 365 x 100).

The last example, by the way, just confirms what was said above about the interest benefit of a credit line. Interest on the loan must be paid for the entire term of the loan agreement, while when opening a credit line - only for the actual period of use of borrowed funds.

Banking fees and disputes around them

Commission for opening a credit line

In addition to the interest rate on the line of credit (which may vary up or down for different lenders), the loan agreement provides for a fee for opening a line of credit. It is set as a percentage of the issuance limit. The size of this commission usually does not depend on the amount of tranches actually received and used by the borrower, as well as on the date of closing the debt limit (including at the initiative of the creditor). Usually, the agreement also stipulates that the commission for opening a credit line is the amount paid by the borrower for the bank providing the borrower with the opportunity to receive and use funds.

Note. The unused disbursement limit is the amount of funds that can be provided to the borrower, calculated as the difference between the disbursement limit and the total amount of tranches provided under the agreement.

Often in practice, borrowers do not like this. Considering such a commission as a hidden increase in the interest rate or, in general, as a violation of the norms of the Law on Banks and Banking Activities, they go to court with a demand to recognize the relevant clause of the agreement as invalid and apply the consequences of the invalidity of part of the transaction. There are many such disputes, and they have been going on for a long time. At the same time, the Presidium of the Supreme Arbitration Court of the Russian Federation, in Information Letter No. 147 dated September 13, 2011, having considered the Review of Judicial Practice for Resolving Disputes Related to the Application of the Provisions of the Civil Code of the Russian Federation on a Loan Agreement, developed criteria to be followed in determining the legitimacy of fees charged from borrowers.

So, paragraph 4 of the said document establishes that the bank has the right to receive a separate remuneration (commission) along with interest for using the loan if it is provided for the provision of an independent service to the client. In other cases, the court assesses whether these commissions can be attributed to the payment for the use of the loan.

Note. From Art. 29 of the Law on Banks and Banking Activities, it follows that interest rates on loans and, in particular, commission fees are set by a credit institution by agreement with customers. A credit institution does not have the right to unilaterally change interest rates on loans, the procedure for their determination, commission fees and the terms of these agreements with clients - individual entrepreneurs and legal entities.

Nevertheless, the controversy continued. And many reached the Presidium of the YOU. In Resolution No. 13567/11 of March 6, 2012, the supreme judges indicated that the commission for opening a credit line does not create any additional benefit or other beneficial effect for the borrower, therefore, it cannot be considered an independent service, for which the bank may require the client fee. The actions of the bank to open a credit line are its responsibility and the subject of the agreement on opening a credit line.

However, creditor banks continued to insist that the commission for opening a credit line creates a direct separate property benefit for the borrower - the ability to receive a tranche in any amount, at any time, there is no need to conclude a loan agreement for each tranche and provide security for each tranche , reducing the time for receiving funds in the form of a tranche, the ability not to pay interest on the entire amount of the credit line, and much more.

Meanwhile, the SAC, meanwhile, expressed an opinion that is very different from the previous one (Decree of 12.03.2013 N 16242/12). He pointed out that the peculiarities of issuing a loan under an open line of credit may lead to certain costs for the bank, as well as possible costs for reserving a specific amount to satisfy future applications of the borrower under the agreement. At the same time, the SAC noted that, unlike a regular loan agreement, an agreement for opening a credit line implies the right of the borrower to receive funds from the lender within a certain period of time in the amount and procedure agreed by the parties, moreover, it is concluded in specific economic conditions and has its own legal features.

Accordingly, charging a commission for opening a credit line can be recognized as legitimate, but the bank must prove that it bears the financial burden, any expenses and losses in connection with the provision of a loan in the form of opening a credit line in order to receive remuneration and compensate for its costs.

Commission for using the credit line limit

The reserved amount of funds under the credit line is equal to the actually issued loan. This is what the supreme tax authority says (clause 1 of the Letter dated 05.24.2013 N CA-4-9 / 9466), indicating that in addition to interest on the use of funds, the borrower can also pay a percentage fee for using the credit line limit (annual interest rate from monthly charge for unselected amounts tranche).

Both officials and arbitrators consider this type of commission as granting the right to use such a limit, which must be paid in accordance with the terms of the contract and regardless of whether the borrower has used this right or not. The essence of law, in their opinion, is as follows. The terms of the agreement on opening a credit line differ in their economic content from the terms of the agreement providing for a one-time (one-time) provision of funds to the borrower. However, during the period of opening a credit line, the borrower at any time (if we are talking about a revolving credit line) can apply to the creditor with a payment order to transfer a tranche to him in the amount and within the provided limit, and the bank is obliged in this case to transfer the required cash to the borrower's current account. facilities.

In the Decree of the Federal Arbitration Court of the Supreme Court of May 29, 2012 N A43-12890 / 2011 (Determination of the Supreme Arbitration Court of the Russian Federation of August 27, 2012 N VAC-10206 / 12 refused to transfer the case to the Presidium of the Supreme Arbitration Court for review by way of supervision), the judges noted that the commission for using the credit limit lines - this is a fee for reserving by the bank for the client a certain amount agreed by the parties in the concluded loan agreement, which the bank cannot use at its discretion during the period established by the agreement. The fee for using the limit is determined as a percentage of the free balance of the limit on the date of payment. Charging a fee for using the credit line limit cannot depend on the provision (non-provision) of a loan to the borrower, since the amount of interest is calculated from the amount of funds used by the client, and the fee for using the limit - from the amount of undrawn (unused) funds. Moreover, a fee for using the limit is established between the parties to the agreement, regardless of whether the borrower has exercised his right to receive credit funds or not, since, by reserving funds for the borrower, the bank incurs certain expenses, and also does not receive the corresponding income in the form of interest, as if the borrower had used credit funds.

Consequently, the condition of the loan agreement, which determines that the borrower pays the lender a fee for using the credit line limit, cannot be invalidated. Conclusion: charging a commission by the bank for using the credit line limit is legitimate.

In any case, before deciding to sign a loan agreement with a bank to open a credit line, it is necessary to calculate the feasibility of this step in conjunction with the proposed banking conditions. Indeed, despite the obvious attractiveness of a credit line over a conventional loan, the understanding that free cheese is only in a mousetrap must be present. High interest rates for convenience, various commissions - everything should be taken into account when making a decision.