Credit transactions include all transactions involving the purchase or loan of goods, services,

or money in the present with a promise to pay or deliver in the future.

ARTICLE 1933. By the contract of loan, one of the parties

delivers to another, either something not consumable so that
the latter may use the same for a certain time and return it,
in which case the contract is called a commodatum; or money
or other consumable thing, upon the condition that the same
amount of the same kind and quality shall be paid, in which
case the contract is simply called a loan or mutuum.
Commodatum is essentially gratuitous.
Simple loan may be gratuitous or with a stipulation to pay
interest.
In commodatum the bailor retains the ownerships of the
thing loaned, while in simple loan, ownership passes to the
borrower. (1740a)

KINDS OF LOAN
> Commodatum - where the bailor (lender) delivers to the bailee (borrower) a non-consumable
thing so that the latter may use it for a certain time and return the identical thing
> Simple loan or mutuum - where the lender delivers to the borrower money or other
consumable thing upon the condition that the latter shall pay the same amount of the same
kind and quality.

CONSUMABLE, Meaning: A thing is CONSUMABLE when it is consumed when used in a

manner appropriate to its purpose or nature, like rice, gasoline, money, fruit, rewood, etc.
(see Art. 418.)

DIFFERENCE BETWEEN CREDIT AND LOAN: The credit of an individual means his ability to
borrow money or things by virtue of the condence or trust reposed by a lender that he will pay
what he may promise within a specied period. A loan (mutuum) means the delivery by one
party (lender/ creditor), and the receipt by the other party (borrower/debtor) who become the
owner, of a given sum of money or other consumable thing upon an agreement, express or
implied, to repay the same amount of the same kind and quality, with or without interest.

PEOPLE VS. CONCEPCION, 44 PHIL. 126 [1922] :

The concession of a credit necessarily involves the granting of loans up to the
limit of the amount xed in the credit.
To discount a paper is a mode of loaning money, with these distinctions: (1) In a
discount, interest is deducted in advance (see Sec. 5, The Usury Law, infra.), while in
a loan, interest is usually taken at the expiration of a credit; and (2) A discount is
always on a double-name paper, while a loan is generally, on a single-name paper.
The concession of a credit necessarily involves the granting of loans up to the limit
of the amount xed in the credit.
REPUBLIC VS. FIRST NATIONAL CITY BANK OF NEW YORK, 3 SCRA 851 : The term
credit, in its usual meaning, is a sum credited on the books of a company to a person
who appears to be entitled to it. It presupposes a creditor-debtor relationship, and may be
said to imply ability, by reason of property or estates, to make a promised payment. It is
the correlative to debt or indebtedness, and that which is due to any person as
distinguished from that which he owes