All About Loan You Should Know(1)

 A loan is a money fund provided by a lender to the borrower and pay its debt and interest at the agreed interest rate and term. The loan currency can be RMB or foreign currency.

Types of loans

I. Loans are divided into terms and include short-term loans, medium-term loans and long-term loans.

A short-term loan is a one-year loan with a one-year loan.

Medium-term loans are loans of more than 1 year (excluding 1 year) and less than 5 years (including 5 years).

A long-term loan is a loan with a term of 5 years or more.

Loans are divided into loans of credit and secured loans depending on whether they are guaranteed or not.

Credit loans, are based on the borrower's credit status of the borrower's good loans, there is no "insurer" there is no other guarantee.

A secured loan is a loan made by a borrower or a third party that provides a guarantee in accordance with the law. Guaranteed loans include secured loans, mortgages and mortgages.

Guaranteed loans, mortgages or pawn loans refer to loans issued in accordance with the guarantee method, the mortgage method or the pledge method stipulated in the Guarantee Act of the People's Republic of China. For example, home loans and car consumer loans are secured loans with housing or cars as collateral.

For rural credit unions, the main categories are rural industrial and commercial loans, consumer loans, student loans, home loans, loans to farmers, loans from agricultural economic organizations and other loans, depending on the purpose and purpose of the loans.

Types of personal loans mainly provided by commercial banks

 i) Personal housing loans.

A commercial loan for personal housing is an independent loan issued by a bank credit fund, which refers to a natural person with full civilian capacity, and when purchasing a self-occupied home in a city in that city, he asks the bank for a commercial housing loan as a loan repayment guarantee using the property right housing purchased by him as a mortgage.

ii) Loans to the consumption of personal cars

iii) Sustainable personal consumer loans

iv) Personal police loans

Loans are subject to conditions

First, in terms of varieties of loans, it is generally appropriate to gradually move from small to large, can first apply to the bank by effective commitment, mortgage or third party guarantee and other procedures for applying for working capital loans, and so on have some strength to apply for project loans.

Secondly, with regard to the amount of loans, since private operators are generally not very wealthy, loans should be made in a way that should try to avoid large investments.

Third, in terms of loan interest rates, in accordance with the relevant provisions of the People's Bank of China, interest rates of commercial banks and urban and rural credit unions for private operators can be applied upwards, with an increase of less than 30%. However, the floating range of banks and credit unions is not the same, so when applying for loans, you can "buy three" where possible to choose the interest rate of small fluctuations of financial institutions to lend.

Fourth, in terms of loan term, current short-term loans are divided into six months (including 6 months), 6 to 12 months (including 1 year) two categories of interest rates, for short-term loans of less than one year, the implementation of the contractual interest rate, unse segmented interest rate;