Theoretical aspects of bank lending: essence of credit, functions, principles, types

In this article, the authors consider the main approaches to the definition of “credit”, determine the basic principles and types of lending. This review is necessary to streamline the understanding of the essence of credit and the lending process in conditions of high debt load of citizens and organizations, proper regulation of various credit lines and products. Carrying out a comparative analysis of different understandings of the definition of “credit”, the authors identify similar features and disadvantages of various approaches not only from the point of view of understanding the essence, but also the implementation of economic relations in society and physical condition, as well as legal entities with banking structures and the para-banking sector, which also is a participant in economic activity. relationships (in terms of, for example, issuing microloans). The main consequence of this article is the systematization of approaches to understanding the essence of the credit product and the lending process in modern economic science.