Socio-economic essence of financelies in the relations that occur between the state and other countries, individuals and legal entities in the distribution, formation and use of decentralized and centralized funds that are formed into funds.
The totality of monetary and distributive relations is the economic essence of finance, without this the circulation of productive assets is impossible.

Finance performs control and distribution functions.
Redistribution of state income -distribution function of the state. When primary incomes appear, the notion of "national income" arises, which is shared by all participants to the salaries of workers in the production sector, to the incomes of budgetary organizations, to fulfill their obligations to the state, banks and other lending organizations.
The state determines the socio-economic essence of finance, which works for the population and stimulates production.

Cumulative formation system, separateexistence, targeted use is a distinctive feature of financial funds. They are intended for amortization fund and budget, to meet public needs.
One of the functions of finance is fiscal, with the help ofwhich withdraws part of the income from business entities and the population to provide the state apparatus, for defense, for non-production (archives, libraries, schools, museums, theaters). Hence, it is also included in such a concept as the socio-economic essence of finance.

Credit is a financial transaction that allowslegal entities and individuals to borrow money for the purchase of wealth. There are several types of loans: bank, trade loans and credit cards, installment plans.
The concept and essence of the loan is to solveproblems facing the economic system of the country. Here lies the socio-economic nature of finance, for example, in the issuance of soft loans for affordable housing purchases. By accumulating free capital, a dynamic production process is ensured. It accelerates monetary circulation and provides various relations: investment, insurance, promotes the development and regulation of market relations.