Revolving and non revolving credit line for legal entities or individuals - offers from banks. What is a line of credit? Types of credit lines Credit line for legal entities

A revolving line of credit is a well-known credit card, where debt repayment means restoring the credit limit. Thus, the client can take out loans many times without unnecessary paperwork. A non-revolving loan is the same, only the limit is no longer infinite: even after the debt is repaid, it will not return to its previous values. In this article, we will analyze not only these two types of lines, but in general we will consider in detail the phenomenon of loan lines and the conditions for using them.

In general, a line of credit is called a special type financial relations between the lender and the borrower, within which the borrower can obtain loans repeatedly and without additional approval. That is, the main difference from a regular consumer loan is that the borrower does not need to go to the bank again to get a new loan, submit an application, documents, wait for a decision, etc. You can get new loans many times.

But the final amount, the so-called loan limit, already has limitations. For example, a client can take at least 100 loans of 10,000 rubles each, at least 10 loans of 100,000 rubles each, but if the limit is set within 1 million rubles, it will not be possible to get any more, at least without paying off old loans. This is where the border between revolving and non-revolving credit lines lies.

A revolving line of credit is a system in which a person can take out loans for a very long time. It is also often called "revolving" because its essence can be briefly conveyed using the example of a revolver drum: the client will receive loans until the credit limit is reached, but as soon as the debt is paid, the credit limit will be available again.

Often, an additional option is added to such a line, the so-called "grace period" or grace period: within a certain time from the moment the debt is formed, the client can return the loan without interest on it. Credit cards are based on this system, and it is there that the grace period is most often implemented. For example, for Sberbank on credit cards, this period can reach 50 days, and for competitive banks - up to 90 days or more.

Usage example

Suppose Sergey's client has a loan limit of RUB 100,000. If he has a credit card, when returning old debts and interest on them, the limit will return to this value.

Let's say Sergei took out a loan for 20,000 rubles, the interest on it eventually amounted to 1,000 rubles. Then Sergey's credit limit will be reduced to 79,000 rubles, and he will not be able to take out a loan for an amount more than this. When Sergey returns the amount - any, even 500 rubles - the credit limit will increase in proportion to the amount paid. Ultimately, if the loan is fully repaid, the credit limit will again amount to 100,000 rubles.

What is a non-revolving line of credit?

If explain in simple words, non-revolving line of credit is a credit limit, upon the exhaustion of which the client can no longer borrow funds under this loan agreement... For the bank, this is convenient because, like a consumer loan, the amount to be issued is strictly limited, for the client a non-revolving loan is convenient because there is no need to withdraw the entire amount at once.

Usage example

Client Sergey received a non-renewable line for 500,000 rubles. He received at different times two tranches - for 50,000 and 100,000 rubles, respectively. The remaining credit limit is 350,000 rubles, after its exhaustion Sergei will lose access to loan funds. Access to loans will be terminated in any case, even if Sergey paid off the debts in an absolutely honest and timely manner.

Similarities and differences

In both cases, there is a credit limit that sets the limit of possible loans at a particular point in time. However, in a revolving line, the credit limit can be lowered and renewed after the debt is repaid. In a non-renewable one, on the contrary, the limit can only be reduced.

The main plus of a non-revolving loan line lies in the fact that the lending bank is less risky: it can predict in advance how much time and effort the client will need to pay off the debt if it remains financial situation or, on the contrary, a worsening of the situation. Therefore, the credit limit is predetermined according to these calculations.

And where the bank risks less, there is no urgent need to compensate for the risks with high interest rates. Hence the observation and conclusion at the same time: rates and conditions on such offers are generally more loyal to the client than on renewable lines.

The main plus of the revolving credit line - the opportunity to go through bureaucratic procedures in a bank for a single time in order to receive a line (credit card), after which a person can solve the problem of obtaining loans for almost a lifetime.

Thus, each of these offers will be beneficial depending on the goals of the borrower: if there is a goal of securing loans in the long term, a line with a renewal function is ideal; if you want to get a loan only for a certain time with the most favorable conditions, a non-renewable line will do.

Differences from overdraft

There are differences both in the technical component (the procedure for issuing a loan, software for such movements of funds, etc.), and in terms of consumer use. Most often, the client does not need to know the technical side, so let's briefly consider the second side of the question:

• The loan term is much shorter (short-term lending);
• There is usually no grace period;
• Very often, the overdraft function is connected only if two conditions are met: first, the client must have a good credit history - if the client suddenly starts to repay debts intermittently, the overdraft may be closed to him. Second, he agreed to additionally secure a loan. For example, banks require to conclude an agreement with the condition of acceptance-free debt repayment. In other words, the bank will have the right, without the consent of the client, to withdraw his money from any receipt to accounts within this bank in order to pay off the debt;
• Hence the last difference: overdraft, therefore, most often implies a small amount of debt and a short term for using the loan. Therefore, in the end, even taking into account the interest, the client loses very little financially.

Other types of credit lines

There are also:

• "Frame" line. Most often issued for legal entities. persons. The line opens for previously agreed projects. When the time comes for the implementation or preparation of these projects, the company only needs to contact the bank with estimates;
• Oncol line - the same as overdraft, only we are talking about several large amounts. It has the features of a revolving loan line, because you can take and repay loans within the oncall line many times;
• Contract account line - the client opens a separate "credit" bank account from which he can take funds in case of financial problems. It differs from the rest of the lines only in the technical component, but in practical terms it is the same oncol line.

Terms of provision

Conditions are highly dependent on who is applying and for what. So, for example, a revolving line - for legal entities, if a high credit limit is required, a non-revolving line is more often approved by individuals, etc. The exception is credit cards, whose main audience is the solvent population in the broadest sense.

Nevertheless, in order not to cause confusion, banks are unifying the line of proposals. Most often, banks offer almost all types of lines:

• The line is valid from three months to a year. It is extremely rare that a validity period of more than a year is approved - for example, 2 and, even more so, 3 years. The exception is credit cards: on them the line is opened most often for 3 years;
• The interest rate depends on the client's solvency, credit history, line type, and others. On average, as of 2020, the rate ranges from 13% to 29% per annum;
• Just like interest rate, the maximum credit limit is determined individually. For individuals often a limit of 100-300 thousand rubles is approved, and for companies the limit can reach values \u200b\u200bof several tens of millions of rubles.

Procedure for calculating interest

It directly depends on the type of the loan line. There is only one general rule for absolutely any loan: interest is accrued for the time during which the client used the loan... Thus, the earlier the loan is repaid, the less interest you will pay - this always works and regardless of the type of line.

Interest can be calculated at a certain frequency - every day, week or month. They can also be “absent” during the loan term and appear by the time the loan is repaid. In any case, it is better to consult a bank employee so as not to lose money on untimely debt repayment.

In the case of credit cards, interest is not calculated immediately, but after grace period... The grace period, for example, in Sberbank lasts from 20 to 50 days, depending on the day after activating the card, the client decided to use it. Interest is calculated every day at the end of the grace period.

Help: take a loan immediately after activation or immediately after the reporting date - this way you will get the longest grace period.

Brief summary of the article

Loan lines are a convenient tool for businesses and individuals. But, depending on the needs of the client, the benefits of different types of credit lines differ. A revolving line is when a borrower gets the opportunity to use loans again after paying off the debt. Non-renewable is when the limit can be reached. The first is beneficial in the long term, and the second - in the short term, so you need to think carefully about what you need before contacting the bank.

Credit line. Lending limit

A line of credit means the right of the borrower to receive from the bank and use, within a certain period of time, funds within the maximum amount (limit) of credit funds agreed by the parties that can be provided to the borrower (issue limit), and (or) within the maximum amount of the borrower's one-time debt to the bank (debt limit).

The conditions and procedure for opening a credit line are determined by the bank and the borrower either in a special general (framework) agreement / agreement, or directly in the agreement for the provision (placement) of funds. The condition for opening a credit line may be contained in the loan agreement. The fact that the loan amount is determined by establishing in the agreement the limit of the credit line and the conditions for submitting applications for the transfer of the next tranche of the loan does not entail the recognition of the loan agreement as not concluded (clause 12 of the information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation of 09/13/2011 N 147). In other words, it is not necessary to conclude a credit line agreement separately from the credit agreement.

The period for which the credit line is opened, the issue limit, the debt limit are determined in the agreement (agreement) between the bank and the borrower.

Attention

The agreement on opening a credit line, unlike a loan agreement, does not determine the specific amount of the loan that the bank undertakes to provide to the borrower, but the maximum amount (limit) of funds that the borrower is entitled to use during the term of the agreement.

An agreement on the provision of a credit line is essentially a framework agreement (Article 429.1 of the Civil Code of the Russian Federation), since it defines only the general conditions of the obligations of the parties arising in connection with the provision of credit to the borrower, the specific amount of the loan within the credit limit is determined on the basis of the borrower's application executed by the bank.

In practice, such types of credit lines as revolving, non-revolving and framework lines have become widespread. These terms are reflected, in particular, in the Regulations for the provision of loans to legal entities by Sberbank of Russia and its branches dated 08.12.1997 N 285-r (approved by the Committee of Sberbank of the Russian Federation for the provision of loans and investments, hereinafter - the Regulations).

A revolving line in the aforementioned Regulation means a credit line in which the loan is issued and repaid within the established issuance limit during the entire term of the agreement on opening a credit line, while the balance of the issuance limit is increased by the amount of loan parts (tranches) received by the borrower in within this line of credit and returned to them to the bank. A revolving credit line is usually opened to a borrower to carry out regular financial and business transactions (as a rule, these are trade enterprises), as well as to cover the general gap in the payment turnover of industrial, agricultural and transport enterprises.

When a non-revolving credit line is opened, the loan is issued within the established limit, while the repaid part of the loan does not increase the free lending limit. A non-revolving credit line is opened for making various payments related to one contract or consignment of goods (for example, to pay for customs clearance, transshipment, transportation and other expenses).

Finally, a framework credit line is opened to the borrower to pay for individual deliveries of goods under one contract, implemented over a certain period, or to lend to targeted programs of the borrower. For each delivery (or stage of the target program), a separate loan agreement is concluded within the framework of the general agreement on the opening of a framework credit line (clauses 1.5.2 - 1.5.4 of the Regulations).

That is, in fact, the general agreement on the opening of a framework credit line provides for the obligation of the bank to conclude a loan agreement (or agreements) with the borrower at his request for an amount within the issuance limit.

Often, the bank charges the borrower a separate fee for opening a credit line. A fee (commission) is often set for other actions related to opening a credit line, for example, maintaining a credit line limit, etc. However arbitrage practice considers the issue of the legality of including the terms of such payments in the loan agreement from the point of view of whether they are established for the provision by the bank of any independent service to the client. If the corresponding fee (commission), established in the form of periodic payments, does not create any beneficial effect for the borrower, that is, it is not actually a payment for a service, the courts regard it as an element of the payment for using the loan. If the commission is charged in the form of a one-time payment, but is not a payment for an independent service provided by the bank to the borrower (such is, for example, the commission for opening a credit line), the courts recognize the condition of the loan agreement on paying the commission null and void, and the funds received by the bank in the form of such a commission - unjust enrichment of the bank, which is subject to return to the borrower (Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated 06.03.2012 N 13567/11, the Third AAS dated 29.06.2012 N 03AP-1759/12).

In relations with an individual borrower under a consumer loan agreement, the concept of "credit line" is not used, however, the legislation provides for such relations essentially the same term "credit limit", which means the maximum amount of funds provided by the lender to the borrower, or the maximum amount of a lump sum debts of the borrower to the lender under the consumer loan agreement, according to the terms of which partial use of the consumer loan by the borrower is allowed. In the case of concluding a consumer loan agreement with a credit limit, the condition on such a limit and on the procedure for changing it must be provided for in the individual terms of the agreement agreed by the bank and the borrower (clauses 1, 4, part 1 of article 3, clause 1 of part 1). 9 Art. 5 Federal law dated 21.12.2013 N 353-FZ "On consumer credit (loan)", hereinafter - the Law on consumer credit).

If the consumer loan agreement is concluded with the condition of the credit limit, and during the previous month the borrower's debt amount changed, the bank is obliged to send the borrower the following information to provide access to such information:

The amount of the borrower's current debt under the agreement;

Dates and amounts of payments made for the previous month and upcoming payment the borrower under the contract;

An affordable consumer loan amount with a credit limit.

The information is provided in the manner prescribed by the consumer loan agreement, but at least once a month. The borrower can receive such information from the bank and on his own initiative. Once a month, this information is provided to him free of charge and any number of times for a fee. The same rules apply to consumer loan agreements, under which creditors can be not only banks, but also other organizations that have the right to carry out professional activities to provide consumer loans, in particular, microfinance organizations, pawnshops and credit cooperatives (

Over the past 3 years, Russian banks have increased lending to their largest borrowers by almost 70% (data from the Central Bank of the Russian Federation). We are talking about loans to commercial companies, state-owned enterprises, municipal and regional authorities. Most of them are issued in the form of credit lines, which are becoming more and more popular every year. In this article we will talk about what credit lines are, to whom they are provided, how to open such a line, on what conditions and in what form.

A credit line is a banking service that allows you to use the bank's money within a certain amount for any period of time. In Russian practice, this service is provided mainly to legal entities and government agencies. But even to individuals, when they issue a credit card (with or without a grace period), in fact, they open a line of credit. However, in banking use this term is used in relation to organizations.

A credit line differs from a standard loan in that funds can be used in installments as needed. For example, a bank provides a credit line (CL) of 100 million rubles for a calendar year. The borrower takes this money from the bank in parts - tranches (for example, 25 million per quarter), also periodically returning them.

This is convenient for those who periodically need large cash infusions to finance investment programs, replenish working capital, liquidate budget deficit... A credit line in such cases allows you not to issue a new loan every time with the accompanying collection of a package of documents, waiting for bank approval, etc.

The line differs from the targeted loan in that it can be spent on anything (there is an exception - framework credit lines, about them - in the corresponding chapter).

In Russian legislation, this type of lending is regulated by the Regulation of the Central Bank of the Russian Federation No. 54-P of August 31, 1998 "On the procedure for providing credit institutions with funds and their return (repayment)."

Who uses credit lines

Legal entities

• Private companies - they open a line of credit to finance their investment projects or to replenish working capital and cover the cash gap. The firm must pay wages to staff strictly, say, on the 10th and 25th of each month. And from the sale of goods comes unevenly - sometimes buyers delay payment for a month or two. And so that employees do not sit without money, the company opens a credit line: at the right time, it can borrow from the bank as much money as is needed to pay wages. Let's say a CL for 5 million rubles is open. The deadline for the advance payment to the employees came up, the revenue did not come all, there is not enough one million rubles - his company takes it from the bank. If, within the next two weeks, buyers transfer payment, the debt is cleared, the credit limit is restored. If not, the company still has 4 million rubles left under the credit line to pay salaries if necessary. You can take a separate loan every time, but it is long and ineffective (to provide a package of documents, wait for a decision, etc.). A line of credit in such cases is the best option.

The same as in the situation with the construction, for example, a new workshop. You can save your own funds for a construction site for a long time (during this time, prices will rise, market conditions will change, but you never know what can happen in Russia!). You can take a huge loan (if they give it), and a significant part of the funds will lie in an expensive, dead weight. With a credit line, the matter is different: you get the right to borrow money from the bank exactly when you need it. For example, there is a CL for 100 million rubles. We started construction - you are taking 80 million for equipment, workers, building materials. Then pay off the debt by paying interest on that 80 million. Found an equipment supplier - you take 100 million to pay for the units. Pay off debt again. Test and fine-tune the equipment - take 30 million rubles, extinguish it again. Pay interest only for that period and for the money that is actually used. It is much cheaper and more convenient, because with ordinary loans you would have to take 210 million and pay interest on them to the bank for the entire construction period.

Private firms choose the bank at their own discretion and agree on the terms and methods of loan repayment. For example, in 2019, SIBUR, which is building a new petrochemical complex, opened a credit line for 1.68 billion euros from a consortium of international banks (Deutsche Bank and others). Another line - for 412 million euros - was opened for SIBUR by a consortium of European banks under the guarantee of the French export credit agency Coface. In addition, the company received a credit line from the Russian Vnesheconombank for $ 160 million.

Another frequent case of opening credit lines for legal entities is bankruptcy restructuring. For example, in 2019, Sberbank became the de facto owner of the Antipinsky oil refinery in the Tyumen region, having received the company's securities as collateral for the credit lines opened for debt restructuring.

• State or municipal organizations (including state and municipalities - regions, cities, municipal areas). If you type "line of credit" in the search bar of the public procurement portal, you will get a long list of requests for lines of credit. Unlike private companies, there is no freedom of choice. The terms of the loan are clearly stipulated in the terms of reference, and any bank that meets the customer's requirements has the opportunity to become a lender (according to the law on public procurement, a region or municipality has no right to refuse to conclude an agreement, no matter who wins the tender). In 2019, money is attracted by the Tambov, Nizhny Novgorod regions, the cities of Ulyanovsk, Omsk, Sochi, Nizhny Tagil and many others.

Individuals

Any individual can count on opening a credit line (usually in the form of a credit card). Any person, like an organization, may have situations when the money has run out, it is still a week before the salary, and you want to eat. Credit cards are meant to help a person in such a situation.

The bank sets a credit limit, for example, 100,000 rubles. You can use this money at any time and in any proportion, for example, pay 3,000 rubles. for groceries in the store, then a few days later refuel at the gas station for 5000 rubles. In a week, buy a laptop for 30,000 rubles.

Almost all credit cards have a grace period, which allows you to use the bank's money without charging interest, that is, free of charge. For example, Vostochny Bank has a grace period of 56 to 90 days (depending on the type of card), Alfa Bank has a credit card “100 days without interest,” and the Ural Bank for Reconstruction and Development has a card with a grace period of 120 days.

If you do not have time to repay the debt during the grace period, you will have to pay interest to the bank for each month of using the loan funds (the grace period is reset to zero). The interest rate is usually higher than for cash consumer loans. Therefore, it is beneficial to use credit cards, keeping within the grace period.

Many credit cards are charged for transactions, which allows you to save on purchases, usually 1-10%. It is especially beneficial to use credit cards in combination with profitable debit cards. We described this scheme in the article:.

To prevent the credit line from being blocked, part of the debt must be closed once a month. Accordingly, the credit limit will be restored by the amount deposited.

Types of credit lines

Russian banks provide several types of credit lines, depending on the terms and methods of using the funds. Further, we will consider the types of credit lines designed only for legal entities.

Framework credit line

The bank provides an amount to pay for the supply of goods under a specific contract within a certain period. The money can be spent only for those purposes that are indicated in the text of the agreement: if the project involves the purchase of a large number of office equipment, the development and installation of special software and nothing else, then you cannot use the funds received from the bank, for example, to buy a car for the company. The framework for the use of money is established - hence the name of the line of credit. Often such CRs are used to purchase machinery, equipment or materials within the framework of one or more projects. The framework line is convenient for the bank, since the risks of misuse or cashing out and withdrawal of credit funds by the owners of the company are reduced.

* In 2019, Sberbank provided a framework credit line of 650 million rubles to the Stavropolskiy dairy plant for a project to build workshops and equip lactose production equipment.

Contract account line

By its principle, it is similar to: a client can keep his own funds in the account, and in case of a shortage of them, he gets access to the bank's money. The next own receipts to the account cancel the debt, and the credit limit is restored. The firm has a current bank account of 10 million rubles. Decides to expand. Managers calculate the necessary funds and estimate that there should be enough money to rent new premises, decorate them and purchase equipment. But in the process it turns out that additional work is needed for another 3 million, and other additional investments may be needed. The company opened a counter-account credit line for 5 million rubles. They took 10 million from their own plus 3 credit, then after 2 weeks another million for additional expenses. Having received revenue of 12 million, the company restored working capital and repaid a significant part of the credit line, restoring the credit limit to (5 - 3 - 1 + 2) \u003d 3 million rubles

Oncol line

The bank opens an account, the client takes money from it, and the repayment occurs when the account is replenished (there is no clear repayment date, only a deadline is set, after which the penalties begin). It is analogous to a credit card. This type of credit line allows you to pay interest only for the period when the money is used and save by quickly repaying borrowed funds.

Onkolnaya line is convenient when you need to cover the cash gap (you know for sure that you will have your own money, but it will come later than the due date for the obligatory payments - it is the loan funds that are taken for them).

Revolving line (revolving credit)

The most common type of credit lines. The maximum amount is set and maximum term credit, and within these limits the borrower can use the funds as many times as specified in the agreement, without additional agreements, and partial or full repayment occurs when the account is replenished. After an interim repayment, the credit limit is restored to the amount that was repaid.

Let's say a credit line has been opened for 100 million rubles with an issue limit of 75 million. The borrower uses 75 million rubles, then extinguishes 50 million - and in 3 months he can again take 75 million (100 - 75 + 50). As a result, of course, you need to return all the money taken.

Such a loan is called revolving, since restoring the limit can be compared to reloading a weapon. Used for the most different types business as well as for personal use. Well suited for entrepreneurs whose sales of products are cyclical.

* In 2019, VTB opened a revolving credit line for 3.8 billion rubles for the energy company TNS energo Nizhny Novgorod. The money is used to replenish working capital. The company directs credit funds for the purchase of equipment, then receives from its current activities and repays part of the loan, thereby restoring the limit.

* In May 2019, the State Procurement Committee of the Tambov Region posted on the public procurement website an order for opening a revolving credit line of 600 million rubles to finance the region's budget deficit and repay debt obligations.

* Sberbank and the ROK-1 fishery holding entered into an agreement to open a revolving credit line in the amount of 1.2 billion rubles, which will go to finance the current investment projects of the group of companies.

Dessert Video: Line of Credit

Non-renewable (simple) line

The bank enters into an agreement with the client for the provision of a certain amount, which the borrower can receive in parts (tranches) without signing additional documents... When repayment, in full or in part, the credit limit is not restored.

For example, a credit line has been opened for the same 100 million rubles. The borrower takes this money in four tranches of 25 million each: in January, April, July and September, repaying the interest monthly, and the main debt in December.

As soon as the entire amount is repaid, the relationship between the parties ends. Such lines of credit are often used by businesses to purchase equipment lines when a certain amount is required (no additional investment is needed), but payment is made in installments. Government agencies or authorities open such lines to finance one-off government contracts at the beginning of the year or in the periods between major tax revenues.

* In May 2019, the State Unitary Enterprise Center (founder - the government of St. Petersburg) placed an order to open a non-revolving credit line for 3 billion rubles for the purchase of special road equipment.

*The city of Sochi opened a line of credit to cover the budget deficit in the amount of 1.78 billion rubles from the bank of FC Otkritie.

Benefits of credit lines

There are several advantages that credit lines distinguish:

• ease of use of the loan: money can be borrowed in parts, and there is no need to conclude separate agreements each time;
• the size of each loan is determined by the client himself - within the bank limit;
• the method of receiving funds is agreed individually - you can choose the type of credit line;
• interest is paid only for the actual time of using the money (unlike a loan for which you pay interest in full, even if you used only a small part of the amount, and the rest waits for its time);
• the interest rate for lines of credit is usually lower than for a regular loan. For large CL, the rate is calculated separately for each tranche, depending on the amount of the provided amounts (than more amount and the shorter the term, the lower the rate), this allows you to save on interest.

Cons of credit lines

There are few disadvantages of this type of lending, and they are usually initially prescribed in the agreement. This may be an insufficient limit for issuing funds - for example, even if there are 100 million on the account, the borrower has the right to take no more than 80 million at a time (the limit is set based on the borrower's solvency, which is not always good, and the bank insures itself). Sometimes it short term line, but the borrower agrees with him when signing the contract.

But from the point of view of the terms of payments for legal entities, compared to a regular loan, there are several tangible disadvantages:

• the application is considered longer - since we are usually talking about the allocation of a large amount, albeit extended in time, the bank carefully checks the financial condition of the borrower and his prospects;
• the borrower must comply with the terms of the agreement as carefully as possible - with the slightest delay, the next tranche will not be paid;
• the client must inform the bank about changes in the statutory documents (for example, about the emergence of new areas of activity, about the change in the composition of the founders, and so on);
• Fines may be imposed for not using the credit line in full.

Terms of providing credit lines

The conditions for issuing money under credit lines are almost the same as those used for ordinary lending:

• financial stability of an individual or legal entity. Confirmed by income statement, account statement, balance sheet and so on. The line will not be opened if there are large income gaps;
• The borrower has a bank account opening the line. It can be a salary or, even better, a deposit one with a tangible amount on it.
• The borrower can provide collateral. An exception may be a long-term bank client with a good credit history. For legal entities, the provision of a pledge or surety is mandatory in most cases.
• The total amount of payments cannot exceed the limit established by the contract.
• A one-time payment cannot exceed the limit established by the agreement.

Credit line currency

CL can be opened in rubles, dollars, euros or any other convertible currency. The type of currency usually depends on the purpose of the loan: if the money is planned to be spent within the Russian Federation, the line is opened in rubles, if not, in foreign currency.

For example, Bank Saint Petersburg, within the framework of an open credit line, in 2019 will give the Sodruzhestvo (agroprom) group of companies $ 120 million to promote products to export markets.

Credit line limit

There are two types of restrictions on the payment of money to the borrower:

• issue limit - the maximum amount that can be issued to the borrower for the entire duration of the credit line. For example, a CL of 1 billion rubles has been opened for the municipality. The city takes 100 million rubles, in six months - 500 million, in another six months - 100 million - and so on. In total, the amount of all loans under the agreement must not exceed 1 billion, regardless of how many of the borrowed loans have already been repaid.
• debt limit - the maximum amount that the borrower can borrow at one time. If a credit line is opened with a debt limit of one billion rubles, then the borrower can take a billion, repay 500 million rubles, then after 6 months take a billion again, repay 700 million, take a billion in another six months, repay 1.5 billion - and so on until expiration of the contract.

The size of the limits in both cases is calculated according to special formulas based on the borrower's solvency, results of his activities and income. Credit history, annual turnover on the company's account (or income of an individual) are taken into account.

Credit line terms

For small and medium-sized businesses, the duration of a credit line usually does not exceed 18 months. For example, "Alfa-Bank" offers CL in the amount of 50,000 rubles for 12 months, in exceptional cases, a period of up to 18 months can be considered. And Bank Intesa issues money in the amount of 1 million rubles for a period of up to two years, but most of this bank's loan portfolio is credit lines up to one and a half years.

Large clients of KL are opened for 2, 3 and even 5 years. For example, the Sredneuralsk Copper Smelter (part of the UMMC holding) received two credit lines from FC Otkrytie in April 2019: one until March 2021, and the other until April 2023.

Interest rate

There are two types of interest rates on credit lines:

1. Fixed for the entire period of the loan - convenient for non-renewable cable lines with a small number of trenches. For example, Alfa Bank has a flat rate of 18%.
2. Variable (floating) rate - depends on the amount taken under the credit line. For example, the Bashkir Soda Company opened a credit line with Sberbank for 5.04 billion rubles. The maximum rate will be 14.4%. But the state-owned enterprise of the Kaliningrad region "Unified Waste Management System" tried through the public procurement system to find a bank to open a credit line at an average rate of 10.6%, no one was willing. Individual banks determine the floating rate of the credit line for key rate , according to the MosPrime3M indicator (the average rate of the pool of leading Russian banks for a specific date) or according to other indicators.

The rate can be set for the entire loan amount, or for the funds used (the second option is more profitable, since you do not pay for the money in the account).

Banks offer individual rates to large and regular borrowers; they can be significantly lower than standard ones.

For credit cards for individuals, the percentage ranges from 11.99% at Alfa Bank and 12% at Tinkoff Bank (in both - not for everyone and subject to certain conditions) to 24-25.9% at Sberbank, 26% in VTB and up to 49.9% in the same Tinkoff when withdrawing cash from a credit card or when transferring to another card.

Commission for opening a credit line

If Sberbank, Alfa Bank, VTB and some other banks do not take a commission for opening a credit line, then, for example, the bank of FC Otkrytie will charge such a payment. "Yeisk Sea Port" paid 5 million for the opening of a KL in this bank for 933 million rubles.

Some banks charge commissions even if the entire credit limit is not used. Banca Intesa will charge 0.5% of the unused amount.

What documents are needed to open a credit line

The packages of documents for individuals and legal entities differ significantly.

Banks require:

• Constituent documents (a copy of the charter, a certificate of registration with the tax office, copies of the passports of founders and managers, extracts from the register of shareholders of a JSC or a list of members of an LLC, orders for the appointment of a director and chief accountant). For individual entrepreneurs - registration documents.
• Balance sheet for the previous six months of activity.
• Information about the borrower's bank accounts.
• Income tax declaration with the stamp of the tax office for the last quarter (if the main tax regime). Declaration according to or STS (when using the appropriate tax regimes).
• Documents on the subject of the pledge (if needed) - a certificate of ownership of real estate, an extract from the register of owners valuable papers etc. Or documents on surety.
• Other documents at the request of the bank.

Individual documents

Everything is simpler here. If the bank already has a salary or deposit account, you only need a passport to issue a credit card. If you are an outsider, you may need to submit an income statement.

How to open a credit line for a legal entity

By default, it is assumed that the bank where you plan to receive loans has your organization's account. Or you have to open it. The longer you serve in the bank, the more chances you will get better conditions. Then proceed according to the following plan:

Step 1.Analysis of the bank's proposals for credit lines, assessment of the pros and cons for your business, identifying additional costs (commission for opening a credit line and others).

Step 2. Negotiations with a bank manager about the opportunities that a credit institution can offer your legal entity (for example, if individual conditions are assumed for a credit line). It is most convenient to conduct such negotiations with a personal manager if this option is included in your service package at the bank.

Step 3. Preparation of a package of documents required by the bank. Complete list - in the corresponding chapter above. If you require a framework credit line, you will have to provide documents about the project under which the loan is taken, including its independent evaluation.

Step 4. Fill out an application in the form of a bank.

Step 5.Wait for the bank's decision.

How to open a credit line for an individual

A line of credit for an individual is a credit card. To get it, you need to do the following operations:

Step 1.If you already have a salary or debit card in any bank, then check your personal account at the bank, perhaps the bank has already offered you special conditions for a credit card. If there are no offers, then contact the bank through your personal account or in the office. For existing clients, the approval process is usually faster and the odds are higher. But do not rush to conclude an agreement, perhaps you will find more interesting solutions.

Step 2.Analyze what your credit card is for. If you hold out until the paycheck, then almost any card will do. Pay attention to the amount of cashback. Each card usually has specific groups. For example, the "Delight" credit card from Vostochny Bank has 5 categories of spending to choose from: 1) 10% discount on gas stations + 5% on car washes, taxis, car sharing 2) 10% on taxi and cinema + 5% on cafes and restaurants 3) 5% on housing and communal services, pharmacies and public transport 4) 10% on food delivery, online films, music and books + 3% on any purchases on the Internet 5) 2% on all purchases. In the UBRD bank, the card "120 days without interest" gives only 1% cashback, but for any purchases and 120 days (4 months) of the grace period. And the Alfa-Bank card "100 days without interest" gives not only a long grace period, but also the ability to withdraw 50,000 rubles every month. cash without commission. This is very convenient if you need a card with a cash option.

Step 3.Registration of an application for issuing a credit card. This can be done both via the Internet and in the office. And some banks can bring your credit card home or work at the appointed time, which saves time and effort. A passport is required for registration.

Step 4.Issuing a card. Here the approach depends on the lending institution. In Sberbank, for new customers, the first will be an unnamed card, which will be replaced with a personal one a year later.

Answers to readers' questions

How is a line of credit different from an overdraft facility?

- this is a short-term loan that allows you to exceed write-offs from the current account over receipts, and then pay off the difference. There are several differences between an overdraft and a credit line, which can be summarized in the following table:

How to increase the credit line limit?

The credit line limit can be increased both at the suggestion of the bank itself and at the request of the borrower. The bank comes out with a proposal to increase the amount of credit funds after it receives evidence of the reliability and solvency of the client in the process of cooperation. When issuing a credit card to an individual, at the initial stage, a credit institution most often approves a deliberately low limit in order to avoid risks. As soon as it turns out that the person is regularly paying off the debt, the bank suggests increasing the limit.

With legal entities, the situation is different: banks are less likely to come out with the initiative to expand lending, since the borrower does not always need it: he initially asks for a credit line limit that suits him. But if in the process of implementing, say, an investment project, there is a need for additional financing, the company applies to the bank to expand the credit limit. The lender will re-evaluate the financial position of the company, its turnover, credit history, and take it into account.

Conclusion

A credit line is an opportunity to receive a large amount from a bank in installments within a certain period of time. This method of lending is cheaper for borrowers than a regular loan, and is less risky for the bank itself.

The credit line is in demand from commercial companies, state enterprises and authorities. Money is usually taken to finance large projects, purchase equipment, pay off debts, restore working capital and finance budget deficits.

Use of lines of credit (in the form of credit cards) and individuals.

The two main types of credit lines are revolving and non-revolving. The first allows you to restore the credit limit after the repayment of the received tranche. The second serves as a kind of wallet from which you can withdraw funds in parts until they run out.

A legal entity can open a line of credit, if credit history, the company's turnover, and the results of its activities in previous periods allow it. We'll have to submit an impressive package of documents, including the parameters of the projects for which it is planned to allocate funds. Banks open CL to authorities more willingly, since they cannot cease to exist, unlike private companies.

An individual can get a credit card from his bank or by submitting an application to any other bank that offers such a product. Income level and credit history are also important here.

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Which provides for the use of funds within the established limit. The repayment and disbursement of money occurs in stages - such operations are called a tranche. As a rule, the schedule of financial flows of the credit line is set in the most convenient mode for the borrower. When the debt is fully repaid, the borrower is offered to reopen a line of credit, often for more favorable terms within the framework of the new agreement.

Types of credit lines

A non-renewal credit line assumes the use of funds within a certain limit. In this case, the borrower receives funds within one tranche and undertakes to repay the debt within a predetermined time frame. The maturity date is determined by the bank's client, but the entire debt must be repaid in one payment.

Renewable credit line (revolving). It implies the use of a lending scheme with the periodic receipt of certain amounts of borrowed funds within the terms and limits established by the bank. Partial and full repayment is allowed. Within the framework of the revolving credit line, it is possible to borrow money in a repeated order.

Credit line agreement

An agreement for opening a credit line is a specific document in which it is customary to use concepts that indicate the features of cooperation between a bank and a borrower within the framework of opening a credit line. First of all, we are talking about loans with a certain limit, when the amount of funds issued is limited to a specific number.

In this case, the refund does not lead to an increase in the limit, respectively, we are talking about a non-revolving credit line. There is also the concept of a debt limit, which sets a limit on the total amount owed. If the company manages to return part of the borrowed funds, the amount of the available credit limit is restored. In this case, we are dealing with a renewable credit line.

Business credit line

A credit line is a type of long-term financing, which provides for the opening strictly for a specific project. It is recommended that you prepare a carefully considered business plan before applying for a line of credit. Ideally, if a successful smaller-scale project is already working on the basis of the presented document. Without substantiated documentation, thanks to which the entrepreneur will be able to reasonably prove the need for income and expenses of the specified level, the provision of long-term targeted financing is impossible as such. A credit line is often opened to pay for the services of certain companies, replenish working capital, purchase goods, materials or raw materials for production, finance the purchase of vehicles, purchase equipment or real estate.

Credit line for individuals

A credit line for an individual in the modern interpretation is an ordinary a plastic card revolving as debt is repaid credit limit... Within a certain amount, funds are available at any time, and the repayment period is stretched over a sufficiently long period, which is most convenient for the borrower.

Among the credit lines for individuals, loans for housing construction or education are very popular. As a result of receiving individual tranches, the borrower is able to significantly reduce the percentage of debt on.

Credit line rates

The size of the interest rate is one of the key conditions on which commercial banks open credit lines to legal entities, for which the latter need:

1. Choose a floating or fixed interest rate, which will be valid throughout the entire loan term.
2. Discuss at the negotiations the size of the interest rate, which will be set within each transaction when working with a credit line.

As a rule, the size of the interest rate is determined on an individual basis, depending on the level of risk, the nature of the enterprise, the financial position of the borrower, the terms of the agreement, the amount and currency of the loan. The average interest rate on credit lines ranges from 10 to 20%. Some commercial banks set a commission for opening a credit line, which rarely exceeds 2% of the amount.

A non-revolving line of credit is

A non-renewable credit line implies the setting of a certain limit on the disbursement of funds that are received in separate tranches within a period that is stipulated in advance, as well as within the maximum fixed amount. The borrower has the right to use the loan funds at a convenient time according to the schedule provided for by the provisions of the loan agreement. When working with a non-revolving credit line, debt repayment does not affect the increase in the available limit.

Credit line repayment

Borrowing and repayment of funds under an open credit line takes place strictly within the established limit. Regardless of the nature of repayment (in full or in parts), it is required to pay off the obligations within the timeframes predetermined by the signed agreement. The size of the open line is usually predetermined at the stage of negotiations with the borrower. The starting point in determining the limit is the balance sheet data of the borrower, in particular the volume of the working capital of his enterprise, as well as the sources from which the financial flows coming to the enterprises are formed.

Credit line term

Lines of credit for small businesses are rarely opened for periods of less than three or more than twelve months. At the same time, interest rates are around 15%. Large and medium-sized businesses receive more favorable conditions in the form of a rate of 10%. Large companies can also count on more flexible loan terms and extended debt repayment periods, which in some cases can be up to several years. But individual exceptions only confirm the rules. In each specific case, the bank's employees are obliged to ascertain the liquidity of the collateral, the high level of reliability of the enterprise and other factors that characterize the company as a reliable and stable borrower.

Accounting for credit lines

Analytical accounting of the company's credit lines is kept on specialized personal accounts. The level of detail is in the context of each trance. Transactions are matched on balance sheet accounts according to the principle of compliance with the actual date of placement of funds received. The most important thing is that the deadlines for provision, recorded in the accounting, coincide with the deadlines specified in the contract. In some cases, the date of the actual placement of the tranche coincides with the time interval within which the loan debt is reflected to the second-order accounts of the balance sheet group. In this situation, tranches are accounted for by the lender on the same personal account of the 2nd order of the balance group.

Tips from Compare.ru:Do you want to open a line of credit privately for your personal needs? Go straight to the nearest commercial bank and claim with the highest limit possible on favorable terms. Do you own an enterprise that requires additional funds to develop or launch a parallel project? Fine. In your case, you will need a carefully prepared business plan to obtain a credit line. Support the above calculations with examples of successful business in real life, and the bank will most likely provide you with a credit line with sufficient limit.

The VTB revolving credit line is a special type of loan issued to legal entities and individuals. The banking institution provides its client with money in the amount of the limit. In this article, we will consider what a credit line is, on what conditions banks provide it.

A credit line, unlike a regular loan, allows the borrower to borrow funds throughout the entire period of the agreement. Depending on the terms of provision, there are several types of this type of loan.

Non-revolving credit line

This type of loan involves the issuance of money in installments (tranches). In fact, this is a classic loan, but issued in parts.

The bank opens a loan account for the client, where a certain amount of money is placed. The borrower withdraws this money at his own discretion. The agreement may provide that the money is withdrawn monthly or in any amount at the request of the client.

Usually such products are used by organizations for business activities.

For example, a company opens a non-revolving line of credit in the amount of 1 million. The organization withdraws money 4 times for a quarter of a million. After all the money is used up, the line is closed, and the company must pay off its debt with interest, similar to a loan.

Revolving credit line

The revolving (revolving) line provides access to borrowed funds within the limits established by the agreement, but a prerequisite is the repayment of an already existing debt. After making the payment to repay the debt, the funds are returned to the client's account, and the company will be able to use the loan again.

Is a revolving credit line profitable?

The revolving line is the most convenient lending for business entities. Having collected the documents once and having received approval, the client gets access to the credit funds. By observing the established limits and repaying their debts on time, companies can effectively use this type of loan.

Framework credit line

A framework credit line is a directed lending. Funds are issued to finance a pre-agreed project or purchase specific equipment.

Often it is the targeted nature of the loan that makes such bank products unattractive to the client. However, given the fairly low rates for this product, some organizations opt for it.

Specific species

You can also distinguish a checking line. It is a special type of loan in which a banking institution opens an account for its customer. The borrower has the right to withdraw money at any time, and the loan is repaid automatically.

This banking product allows organizations to borrow money only in the right time and pay only for a certain period when the loan is actually used.

What is the difference between an overdraft and a credit line?

Overdraft is a product close to a credit line.

The main differences from a credit line are as follows:

• overdraft is available only in the absence of funds in the account. The line of credit does not depend on the amount of money in the account;
• the entire amount of money entering the current account is completely debited credit institution until the full repayment of the overdraft. The credit line provides for partial repayment
• for an overdraft, the interest rate depends on the amount of funds transferred and the term of their use. The credit line offers various types of interest rates.

What is the difference between a loan and a line of credit?

A loan is a one-time agreement, under the terms of which a certain amount of a loan is provided once. A line of credit involves obtaining borrowed funds multiple times.

The line is a kind of ongoing credit.

In this regard, it is it, and not a simple loan, that companies choose to finance their activities.

Line with issue limit and debt limit: the main differences

A line with a disbursement limit assumes a certain agreed amount of disbursement of funds to the client. For example, it is stipulated that the borrower has the right to receive no more than 500 thousand monthly.

When concluding an agreement with a debt limit, a limit on the maximum possible debt is established. For example, a legal entity cannot borrow more than 500 thousand. Thus, at the moment when the client's debt amounts to 500 thousand additional funds are not issued.

Conditions for granting a credit limit

A revolving line of credit assumes that the borrower is using in cash on loan within the limits established by the contract. The limit is set in the contract.

The client must provide documents proving his solvency.

Loan currency

This type of lending can be provided both in Russian rubles and in foreign currency. To obtain loans, for example, in the organization's dollars, you must open a foreign currency account.

Debt limit

The debt limit assumes a certain amount of debt that the client is entitled to have. If this amount reaches the limit, further crediting is not possible.

In each case, the bank sets a debt limit.

Timing

A revolving line of credit is a long-term loan, as a rule, it is provided for a period of 5 years or more.

If the borrower does not fulfill its obligations, the bank has the right to terminate the provision of a loan and thus terminate the term of the loan agreement.

If both parties agree, the loan agreement can be extended by new term on same conditions.

Fixed or floating interest rate

There can be two fundamentally different interest rates:

• fixed;
• floating.

A fixed interest rate assumes that the borrower always pays the same interest.

The floating rate consists of two parts: fixed and variable. The second part depends on the client's debt and the loan amount.

Commission

The bank takes its commission for the use of borrowed funds by the client. The tariffs are described in tabular form.

Security

To obtain a loan in the largest amount, an organization may provide collateral. Such security can be:

• guarantors;
• mortgage of real estate, vehicle, goods in circulation;
• bank guarantees from other credit institutions.

How to open a credit line

To open a credit line, the bank requires borrowers to provide a certain package of documents. It differs slightly depending on the status of the client.

Legal entity

The organization must submit to the bank:

• copies of constituent documents;
• accounting and financial reporting;
• general information about the activities of a legal entity.

Specificity for individual entrepreneurs

The bank cannot give individual entrepreneur a large amount of credit line. Therefore, in order to obtain loans to individual entrepreneurs, it is necessary to provide substantial collateral, as well as a long-term plan for further development.

For an individual

Strictly speaking, ordinary citizens cannot be provided with a line of credit in the classical sense of this term. The bank issues credit cards with similar capabilities to individuals.

Revolving credit card

This particular product for individuals is the closest to a credit line. With this card, a citizen gets access to a credit account. The agreement establishes a maximum limit for the spending of borrowed funds, as well as the timing of debt repayment.

Debt repayment procedure

Debt repayment can be done in any way convenient for the client:

• through a bank branch;
• by transferring from card to card;
• using electronic services (for example, Sberbank Online);
• through Russian post offices;
• using the Golden Crown service.

When using third-party services, credit institutions can take a commission!

How to increase your credit line

In practice, a situation may arise when a client needs a larger loan amount. In this case, you can contact the bank branch with a request to increase the amount of the credit line.

As an attachment, you must submit documents proving the borrower's solvency.

If the application is approved, the contract will be amended accordingly.

If the bank closed the line?

In the absence of payment on time, the bank has the right to close it. Often, such actions of a credit institution seriously harm the financial stability of the client organization.

To resume lending, you first need to pay all debts. Sometimes for this you have to take loans from another bank. After that, you can contact the bank branch with an application to open a line.

Advantages and disadvantages

An indisputable advantage compared to a regular loan is the fact that to open a credit line you only need to go to the bank once, collect the necessary package of documents and get access to long-term lending.

The procedure for calculating interest is advantageous. Interest is accrued only on the amount that the client takes for his needs. Such conditions can save a significant amount of money.

But given view lending also has its drawbacks.

1. Often the contract stipulates that the one-time disbursement of funds (tranche) is small. Therefore, despite the overall large limit, the client can use a small amount at a time.
2. Most often, collateral is required to open a line. In this regard, it is not always convenient for organizations to pledge their real estate.

Thus, each client, having studied the terms of this product, must come to a conclusion about the convenience of using this particular type of lending.