Entrusted loans refer to loans issued by trust institutions in accordance with the requirements specified by the entruster. The entrusting agency can issue, supervise the use and assist in the recovery of loans based on the loan object, purpose, amount, term, interest rate, etc. determined by the principal. Similarly, for banks, entrusted loans are the intermediary business of banks. Banks play a matchmaking role. By helping enterprises complete entrusted loans, banks charge certain handling fees to increase their business income.

Application conditions

The client and the lender should be enterprises (institutions), other economic organizations, and individual industrial and commercial households that have been approved and registered by the industrial and commercial administration authorities (or competent authorities). , or a natural person with full capacity for civil conduct; a settlement account has been opened at a commercial bank;

The source of entrusted funds must be legal and have the right to autonomously control it; when applying for an entrusted loan, you must bear the loan risk alone; you must be in accordance with the national Pay taxes according to the relevant requirements of the local tax bureau, and cooperate with the trustee in handling the collection and payment of taxes; meet other requirements of the business bank.

Business process

The client and the borrower reach a financing intention and negotiate to determine the loan interest rate, term and other factors.

The client and the borrower open a settlement account at the business bank. The client issues a "Loan Power of Attorney" to the business bank, and the client and the borrower apply to the bank at the same time.

The bank accepts customer entrustment applications, conducts investigation and approval, and then accepts entrustment from qualified customers.