16 Definition of Credit According to Experts (Full Discussion)
16 Definition of Credit According to Experts (Full Discussion) - In everyday life, we are definitely familiar with the word "credit" or it is often related to credit. For example, we often meet at electronics sales, car or motorbike dealers, and so on. The term credit is no stranger to the world of trade, buying and selling or the economy.
16 Definition of Credit According to Experts (Full Discussion)
Often the word credit is associated with the word debt, but basically credit itself is more related with a process in buying and selling while the debt itself only applies to borrowing goods or Money. In this discussion, we will present the meaning of credit itself according to what has been discussed by experts in their fields. Let's see what the meaning of credit is explained by the experts.
Definition of Credit
The word credit itself comes from the Latin, namely credere which means trust. Credit is an ability to carry out a purchase or is currently making a loan which there is an agreement that the payment will be made within the agreed timeframe together.
Definition of Credit According to Experts
There are several definitions of credit according to the opinion of experts, including the following:
1. Anwar
Here he explained that credit is a gift of achievement (services) from one party to another party as well the achievement will be returned which is in accordance with a certain period of time along with money for the counter-achievement (reply service).
2. Hasibuan
He is of the opinion that credit is all types of loans that must be paid with interest by the borrower which is in accordance with a mutually agreed agreement.
3. Thomas Suyatno
Thomas Suyatno explained that credit is a provision of money that can be equated with bills according to an agreement between the borrower and the lender.
4. Cashmere
He stated that credit is a financing that can be in the form of money or a bill whose value can be exchanged for money.
5. Henry Dunning
He argues that credit is when someone is providing a service through an agreement for payment.
6. Dr. Al Amin Ahmad
He stated that credit, namely paying debts that must be done, can be carried out gradually at a predetermined time.
7. Muljono
Here he argues that credit is an ability to make purchases or carry out a loan with an agreement to make payments at a specified time.
8. Mecleod Rivai and Veithzal
They stated that credit is the process of transferring money, services or goods from one party to another on the basis of trust in the existence of an agreement able or able to pay on the previous date agreed.
9. Law No. 7 1998
Quoted from Law No. 7 1998 that credit is a provision of bills and money which can be equated based on an agreement or loan agreement between the bank and other parties and obliging the borrower to pay off the debt with the amount of interest, compensation or profit sharing within a predetermined period of time. determined.
Based on the definition of credit according to the experts described above, we can conclude here in summary that credit is every agreement in the form of services and remuneration based on the basis trust. In practice credit loans are generally stated in a written agreement and there is a guarantee by submitting the terms used as collateral whether in the form of objects or not object. The goal of a credit is a provision of loans in the form of capital to do business.
10. Brymont P. Kent
In the opinion of Adrian Brymont P. Kent argues that credit is the right to receive payment or an obligation to do something payment at the time that has been requested or at a time that will come, in the delivery of an item at the time Now.
11. Rolling G. Thomas
Here is Rolling G. Thomas argues that credit is a trust by the borrower by paying a certain amount of money at a predetermined time.
In a credit card, there must have been an agreement or contract in it between the two parties that had previously been mutually agreed upon.
12. Teguh Pudjo Muljono (2007)
He explained that credit is "an ability to carry out a purchase or procure a loan with a promise of payment to be made within an agreed timeframe.
13. Law Number 10 of 1998 (article 21 paragraph 11)
Quoted from Law Number 10 of 1998 (article 21 paragraph 11) which states that credit is a provision of money or bills that can be equated with that, which are based on an agreement or a loan agreement between the bank and the bank another party which obliges the borrower to immediately pay off his debt in accordance with a certain period of time by giving flower.
14. Amir R. Coal
Here he argues that credit is a gift of achievement in contrast where the achievement will be a sum of money in the future.
15. Firdaus and Ariyanti
Here they both argue that credit is a reputation that is owned by everyone who allows him to get money, goods and labor, by way of exchanging with an agreement in making payments at a certain time future.
16. Malay S.P. Hasibuan
He argues that credit is all types of loans which must be repaid along with the interest by the borrower which is in accordance with the agreed agreement.
Credit Functions
The following are some of the functions of credit, including:
- Useful in increasing the usability of money
- Can increase excitement when trying
- Can increase the circulation and traffic of money
- Credit is one tool to stabilize the economy
- Useful in improving with international relations
- Can increase the power function as well as in the circulation of goods
- Can be used as an increase in income distribution
- It can be used as a motivator and dynamic for trade and economic activities
- To increase the capital of a company
- To increase the IPC (income per capita) for the community
- To change the way people think and act so that it has economic value
Credit Purpose
The following are some of the purposes of credit, including:
- In order to obtain bank income from the results of the credit interest received
- In order to be productive and able to utilize existing funds
- Useful in carrying out a bank operational activity
- As an additional capital in working in the field of the company
- In order to speed up traffic from payments
- Useful in increasing the welfare and income of the community
That's all for our review this time about 16 Definition of Credit According to Experts (Full Discussion), hopefully can help and add insight to the readers, thank you.
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