Credit

A financial instrument in which a bank or another financial institution (the lender) provides monetary funds to an individual or legal entity (the borrower) under the obligation to repay them within an agreed period and under specific conditions. The compensation for the use of these funds is usually interest, and in many cases the credit is secured by assets or other guarantees. Credits may vary in terms of duration and purpose – for consumption, home purchase, investment, or financing of business activities.