Personal credit
In banking, a personal loan is a loan that is made available by the credit institutions based on the creditworthiness of the borrower and can be granted as a blank loan or against loan collateral . The opposite is the real estate loan .
history
The definition of the term personal loan was very inconsistent in the past. For Georg Obst , the Lombard loan was not one of the personal loans in 1923 : "While the discount business is a personal loan, the person of the borrower takes a backseat in the Lombard business ..." In 1925, personal liability was in the foreground because "the security of the personal loan is based on the personnel liability. It can be a blank loan for which the borrower alone is liable, or a guarantee loan in which, in addition to the debtor, third parties have to take their assets for a claim ”. In 1939, the Lombard loan was one of the personal loans: "In the case of personal loans, the loans covered by securities, goods or bills of exchange predominate by far." In 1958 Otto Hintner used the terms personal credit and blank credit synonymously. He understood it to be a loan that is given without the formal provision of collateral. In 1959, Martin Ungerer devoted an entire book to personal credit, which for him not only dominated the credit-privileged customer field of banks, but also exerted an influence on trade , industry and craft through the types of current account credit . In 1961, Wilhelm Kalveram differentiated between blank credit, simple credit (credit collateral is of secondary importance) and collective personal credit ( guarantee and bill of exchange credit ). For the bank lexicon, the personal loan was still a "loan given without sufficient real security" in 1998.
In the Weimar Republic , with the exception of the current account credit, personal credit did not play a prominent role. It was still used experimentally in the first decades of the Rhenish savings banks; it was not until 1850 that it received full legitimation from the decision-makers. In 1856, personal loans with a guarantee as collateral appeared for the first time in statistics; as recently as 1882, personal loans in the Rhineland were almost only granted in Düsseldorf and Cologne.
When the term personal credit was defined and newly introduced in savings bank law in May 1929, there was, by definition, an enormous volume of personal credit in the savings bank system.
Personal loans with savings banks
Since May 1929, according to the regional savings bank ordinances (“ model statutes ”), all loans that did not belong to the real estate loans or municipal loans were considered personal loans at Sparkassen . Personal credit was the granting of short-term loans "against the provision of other collateral", whereby the Loan Security Ordinance of May 1928 provided for mortgages , pledging of movable property and rights , guarantees and bills of exchange as typical loan collateral. Current account overdrafts were always personal loans, even when secured by mortgage. Within the personal loan, a distinction was made between covered and uncovered personal loans. Covered personal loans were secured by all loan collateral except mortgage liens , blank loans were unsecured personal loans.
There were serious savings bank law restrictions on personal loans. According to Section 23 (1) of the Sparkassenverordnung (SpkVO NRW), they could only be granted to borrowers who had their place of residence or a commercial establishment in the territory of the guarantor . In terms of quantity, there was a personal credit limit , according to which the individual personal credit 3 ‰ (§ 24 No. 2 SpkVO NRW) and all personal loans to a borrower 1% (§ 24 Paragraph 2 SpkVO NRW) of the savings bank's eligible liabilities were not allowed to exceed. The savings bank regulations even provided for quotas for blank loans and loan collateral (such as security transfers). If this borrowed maximum limit of the personal loan was related to the liable equity of the savings banks, the maximum amount of 1% for an average savings bank corresponded to about 27% of the equity capital, i.e. it was only about a third of the large credit applicable to other banks . It fell well below the limits set by the Banking Act (KWG) for all groups of institutes. The purpose of the provisions on the personal credit ceiling was to limit the personal credit of the savings banks. If the limit was exceeded, the savings banks had to approach the Landesbanken as additional lenders by way of a joint loan . For the first time, there were calls for the personal loan ceiling to be lifted in 1969; the previous maximums for personal loans ceased to apply in the individual federal states by 2005.
According to Section 11 (1) of the articles of association of Nassauische Sparkasse from June 2008, it grants personal loans against other customary bank collateral; Paragraph 2 allows it to grant loans without collateral. Paragraph 3 stipulates that a personal loan borrower may not be granted more than 25% of the assessment base. The provisions of the German Banking Act apply to the crediting of other obligations of the borrower against the maximum personal credit limit.
Todays situation
The personal loan is based on the creditworthiness of the borrower. It is therefore often a blank loan, but if the creditworthiness is not completely upright, loan collateral is required. All loan collateral can be used here, including mortgages that are above the lending limit applicable to real loans ("personal loan part "). In addition, as more come physical collateral , the pledge of bank deposits , securities or precious metals , transfer of ownership of movable property and transfer of ownership of motor vehicles , or the assignment of claims and rights before. If third parties assume personal liability for the personal loan in the form of a surety , guarantee , letter of comfort or joint and several liability, there is personal security. In all cases, however, the collateral is only of secondary importance because the borrower's creditworthiness continues to be in the foreground. Natural persons or companies (both large companies and small and medium-sized companies ) are eligible for the personal loan. As a credit types are particularly overdrafts , consumer loans , overdrafts or investment loans to name.
Accounting
In terms of banking supervisory law, personal loans are considered part of the “claims on customers” and are therefore included in the risk position . In the bank balance sheet they appear in accordance with Section 15 (1 ) of the Financial Institutions Accounting Ordinance (RechKredV) as “Claims on customers” or, in accordance with Section 14 RechKredV, as “Claims on banks”. According to Section 15, Paragraph 2, Clause 1 of the RechKredV, real-estate loans are to be shown separately from the other “claims on customers” in a separate item.
Others
In many non-banks , employers grant their employees employer loans, which are sometimes called personal loans (credit to staff ).
Individual evidence
- ↑ Georg Obst, Das Bankgeschäft , Volume II, 1923, p. 64
- ^ Miscellaneous Bulletins on Agricultural Credit in Germany, Volume 2, 1925, p. 687
- ^ Karl Muhs, Geld-, Bank- und Börsenwesen , 1939, p. 109
- ↑ Otto Hintner, Kredit und Kreditformen , in: Handwortbuch der Betriebswirtschaft, 1958, p. 3512
- ↑ Martin Ungerer, Der Personalredit , 1959, p. 136
- ^ Wilhelm Kalveram / Hans Günther, Bankbetriebslehre , 1961, p. 47
- ^ Karlheinz Müssig / Josef Löffelholz, Bank-Lexikon: Concise dictionary for money, banking and stock exchange , 1998, Sp. 1679
- ↑ Hans Pohl, Die Rheinischen Sparkassen , 2001, p. 100
- ↑ Ludwig Mirre / Hans Dreutter, Handkommentar der Reichssteuergesetze , Volume II: KStG, 1939, p. 120 f.
- ↑ the sum of sight deposits , time deposits , savings deposits and savings bank bonds
- ↑ Rudolf Holdijk, The Equity Problems of the German Savings Banks , 1979, p. 102
- ^ Rainer Foitzik, Consumer and Real Loans , 2011, p. 4
