LOANS PROVIDED BY NON-BANK CREDIT ORGANISATIONS

Аннотация

Loans provided by non-bank credit organizations are an alternative form of financial services, aimed at allocating loans outside the banking system to various clients, including individuals and small business entities. Such organizations include microfinance organizations, leasing companies, fintech companies, and online lending platforms. They are characterized by fast lending, simplified document demand and innovation approaches. This article will tell you in detail about the types of non-bank credit organizations, their mechanisms ofoperation, advantages andrisks. Keywords:off-bank loan, microfinance, leasing, fintech, onlineloan, lending, financial services. Loans issued by non-bank credit organizations are financial funds allocated by financial services institutions, and not commercial banks, which are provided to individuals and legal entities for various purposes. These organizations serve as an alternative to banks in the financial market and usually have their own characteristics in terms of obtaining a loan, interest rates and repayment period. Microfinance organizations are institutions that provide financial assistance to low- income residents and small business entities with limited access to financial services. Their main goal isto increase financial inclusiveness, fight poverty and promoteentrepreneurship bylending to economically vulnerable strata. The Microfinance System is especially important for customers with limited access to loans from official banks, carrying out the process of obtaining aloan inasimplified manner. Services provided by microfinance organizations include microcredit, savings and deposit services, insurance programs, and financial literacy advice. Microcredit is usually issued in small volumes, unlike official bank loans, which are provided with minimal documents and sometimes without collateral. Savings services, on the other hand, provide customers with the opportunity to raise funds for the future. Insurance programs include options such as agriculture andhealth insurance for small entrepreneurs and farmers. The lending procedure of microfinance organizations is quick and simplified, and unlike the banking system does not require long analyses and many guarantees from customers. Among the main characteristics of loans are small size, short duration, lack or low collateral demand and high interest rates. Due to the rapid implementation of the loan allocation process by these organizations, small business owners will be able to expand and develop their activities faster. The main advantages of microfinance include providing a financial resource for individuals with limited access to credit, stimulating entrepreneurship and increasing the economic activity of society. In particular, promoting women and young entrepreneurs to achieve economic independence is one of the positive aspects of microfinance. However, there are also some disadvantages to this system, one of which may be high interest rates. In addition, there is also page1041 INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE ISSN:2692-5206,ImpactFactor:12,23 AmericanAcademicpublishers,volume05,issue03,2025 Journal: https://www.academicpublishers.org/journals/index.php/ijai the possibility that some customers may have difficulty repaying the loan or become addicted to theloanon apermanent basis. Real-life examples of microfinance organizations include agricultural microloans, women's entrepreneurship, and loans for startup businesses. For example, a farmer can receive microcredit to expand his farm or introduce new technologies. And a woman who is engaged in domestic production can develop her own business by obtaining a loan for the purchase of new equipment. A young entrepreneur who is launching a new startup can start his career by receivingfunds from a microfinance organization foran initialinvestment. Leasing companies are institutions that provide financial assistance to business and business entities in the purchase of assets necessary for long-term use. Leasing is a financial instrument that works on the basis of long-term leasing to a company or individual, rather than providing full capital funds for the purchase of assets. This method is especially useful for small and medium-sized business entities, as they may not be able to acquire large assets at a single cost. Leasing companies are involved in financing a variety of assets, including industrial equipment, vehicles, technological devices, agricultural machinery, and real estate. They provide the right for customers to purchase assets and use them for a specified period, in the process of which the user makes a certain amount of payments. At the end of the lease period, the client can fully purchase the asset, return it or renew the contract. The main types of leasing include operating leasing and financial leasing. The operating lease is short-lived and the asset is returned to the company at the end of the lease. This method is convenient for tec