A credit crunch (credit crisis) is a reduction in the general availability of loans (credit) or a sudden tightening of the conditions required to obtain a loan from the banks. A credit crunch generally involves a reduction in the availability of credit independent of a rise in official interest rates. The following video explains credit crisis in simple terms with the help animation. The goal of giving form to a complex situation like the credit crisis is to quickly supply the essence of the situation to those unfamiliar and uninitiated.