Generally, you need a guarantee, a house mortgage, proof of income and good personal credit information before you can apply. Moreover, in different countries and different development periods of a country, the types of loans classified according to various standards are also different. For example, industrial and commercial loans in the United States mainly include ordinary loan limits, working capital loans, standby loan commitments, and project loans. In Britain, industrial and commercial loans mostly take the form of discounted bills, credit accounts and overdraft accounts.
1. Interest rate refers to the ratio of interest amount to borrowed funds (principal) in a certain period. Interest rate is the main factor that determines the capital cost of enterprises, and it is also the decisive factor for enterprises to raise funds and invest. To study the financial environment, we must pay attention to the current situation and changing trend of interest rates. Interest rate refers to the ratio of the interest amount due in each period to the par value of the borrowed, deposited or borrowed amount (called the total principal). The total interest of the lent or borrowed amount depends on the total principal, interest rate, compound interest frequency and the length of time of lending, deposit or borrowing. Interest rate is the price that the borrower needs to pay for the money borrowed, and it is also the return that the lender gets by delaying his own consumption and lending it to the borrower. The interest rate is usually calculated by the percentage of one-year interest to the principal.
2. Changes in interest rates Generally speaking, interest rates are expressed in terms of annual interest rate, monthly interest rate and daily interest rate according to the term standard of measurement. In modern economy, interest rate, as the price of capital, is not only restricted by many economic and social factors, but also has a great influence on the whole economy. Therefore, modern economists pay special attention to the relationship between various variables and the balance of the whole economy when studying the decision of interest rate. Interest rate determination theory has also experienced the evolution and development of classical interest rate theory, Keynesian interest rate theory, loanable funds interest rate theory, IS-LM interest rate analysis and contemporary dynamic interest rate model.
3. Keynes thought that savings and investment are two interdependent variables, not two independent variables. In his theory, the money supply is controlled by the central bank and is an exogenous variable without interest rate elasticity. At this time, the demand for money depends on people's psychological "liquidity preference". Keynes regarded interest rate as the later interest rate theory of loanable funds, which was the interest rate theory of neoclassical school, and was put forward to revise Keynes's "liquidity preference" interest rate theory. To some extent, loanable funds's interest rate theory can actually be regarded as the synthesis of classical interest rate theory and Keynesian theory.
4. Hicks and others, a famous British economist, think that the above theory does not consider the income factor, so it is impossible to determine the interest rate level, so they put forward the IS-LM model based on the general equilibrium theory in 1937. Thus, a theory that interest rate and income are determined simultaneously under the interaction of savings and investment, money supply and money demand is established. According to this model, the determination of interest rate depends on four factors: savings supply, investment demand, money supply and money demand, and all factors that lead to changes in savings investment and money supply and demand will affect the interest rate level.