Five kinds of loans are defined as:

Normal: The borrower can perform the contract, and there is no sufficient reason to suspect that the loan principal and interest cannot be repaid in full and on time.

Note: Although the borrower has the ability to repay the loan principal and interest at present, there are some factors that may adversely affect the repayment.

Secondary: The borrower has obvious problems in repayment ability, and cannot fully repay the loan principal and interest by relying entirely on its normal operating income. Even if the guarantee is implemented, it may cause certain losses.

Suspicious: the borrower can't repay the loan principal and interest in full, even if the guarantee is implemented, it will definitely cause great losses.

Loss: After taking all possible measures or all necessary legal procedures, the principal and interest are still unrecoverable, or only a small part can be recovered.

Extended data:

Early loan classification

Before 1998, the loan classification method of China commercial banks basically followed the provisions in the Financial System of Financial and Insurance Enterprises promulgated by the Ministry of Finance 1993, and classified loans into four categories: normal, overdue, sluggish and bad debts. The latter three types are collectively referred to as non-performing loans, which are referred to as "one excess and two retention" in China.

Overdue loans refer to overdue loans, which are overdue as long as they exceed one day; Sluggish refers to loans that are overdue for two years or less, but have stopped operating and the project has been dismounted; Bad debts refer to loans that cannot be recovered according to the relevant regulations of the Ministry of Finance and need to be written off. Most of the non-performing loans of China commercial banks have formed a historical problem that should be written off but not written off.

This classification method is simple and feasible, and it really played an important role under the enterprise system and financial system at that time. However, with the gradual deepening of economic reform, the disadvantages of this method have gradually emerged, which can no longer meet the needs of economic development and financial reform.

For example, an unexpired loan, whether there is a problem in fact, is regarded as normal, and the standard is obviously unknown. For another example, it seems too strict to classify a loans overdue day as a non-performing loan. In addition, this method is an after-the-fact management method, and only after the loan period is exceeded will it be shown as a non-performing loan in the bank account.

Therefore, it is very important to improve the quality of bank loans. It is often powerless to take certain protective measures in advance for problem loans. Therefore, with the outstanding problem of non-performing loans, this classification has reached the point where it must be changed.

Baidu Encyclopedia-Five Categories of Loans

What is the five-level classification of loans?

five tier classification of loans

1, Normal: Normal means that the borrower has been able to repay the principal and interest normally after applying for the loan, and the bank is fully confident that the borrower can repay the loan on time, and the loan loss rate is zero; The borrower can perform the contract, and there is no sufficient reason to suspect that the loan principal and interest cannot be repaid in full and on time.

2. Concern: Concern means that the borrower has the ability to repay the principal and interest, but some factors may interfere with the repayment of the loan, and the bank judges that the loan loss rate is 5%; Although the borrower has the ability to repay the loan principal and interest, there are some factors that may adversely affect the repayment.

3. Subgrade: Subgrade means that the borrower's repayment ability has obvious problems, and he can't repay the loan by relying on his income, so he needs to pay off the loan by mortgage or financing. The loan loss rate is between 30% and 50%; There are obvious problems in the borrower's repayment ability, and it is impossible to repay the loan principal and interest in full by relying entirely on its normal operating income. Even if the guarantee is implemented, it may cause certain losses.

4. Suspicious: Suspicious means that the borrower has been unable to repay the loan, even if it is repaid by mortgage or guarantee, it will cause certain losses. The loan loss rate is between 50% and 75%; If the borrower can't repay the loan principal and interest in full, even if the guarantee is implemented, it will definitely cause great losses.

5. Loss: Loss means that the borrower cannot repay the loan in any way. The loan loss rate is between 75% and 100%. After taking all possible measures or all necessary legal procedures, the principal and interest cannot be recovered, or only a small part can be recovered.

The five-level classification of loans means that the People's Bank of China requires commercial banks to classify the loan quality in five levels according to the borrower's actual repayment ability, and classify loans into normal loans, concern loans, subprime loans, doubtful loans and loss loans according to the degree of risk.

It should be noted that the late five-level classification of loans proves that the worse the borrower's credit status, the lower the repayment ability and willingness, and the higher the loan interest rate, especially the latter three are non-performing loans. Once the bank loans successfully, it is very likely to lose the principal and interest.

Five-level classification standard for loans

The five-level classification of loans refers to the five-level classification of loan quality by commercial banks according to the borrower's actual repayment ability, that is, according to the degree of risk, loans are divided into five categories: normal, concerned, secondary, suspicious and loss, and the last three categories are non-performing loans.

1, normal loan

After signing the contract with the bank, the borrower repays the loan on time, and the loan loss is 0.

2. Pay attention to loans

The borrower has repayment ability, but there are unfavorable factors in repayment, which affect the borrower's repayment ability, and the loan loss does not exceed 5%. The principal or interest is overdue (including extension, the same below) for 90 days (inclusive).

3. Subprime loans

There are obvious problems in the borrower's repayment ability, so he can't repay the loan principal and interest, and he needs to repay the loan by mortgaging assets or other means, and the loan loss will be 30%-50%. The principal or interest is overdue by 9 1 day to 180 days (inclusive).

4. Suspicious loans

The borrower can't repay the loan principal and interest in full, even if there is mortgage and guarantee, it will cause losses, and the probability of loan loss is between 50% and 75%. The overdue principal or interest exceeds 18 1 day.

5. Loss loans

The borrower has no possibility to repay the principal and interest of the loan, and the loan is definitely a loss. For this loan, the bank will cancel it after handling the necessary legal procedures, and the loan loss is 75%- 100%. If the borrower is unable to repay the loan, after taking all measures or all necessary legal procedures, he still can't recover the principal and interest, or can only recover a very small part.

I. Loan repayment method

(1) Equal principal and interest repayment method: that is, the sum of loan principal and interest is repaid in equal amount every month. For housing provident fund loans and commercial personal housing loans, most banks have adopted this method. The monthly repayment amount remains unchanged;

(2) average capital repayment method: a repayment method in which the borrower averages the loan amount to each (monthly) repayment period and pays off the loan interest from the previous trading day to the repayment date. The monthly payment will decrease month by month;

(3) Repaying the principal and interest on a monthly basis: that is, the borrower repays the loan principal in one lump sum on the loan maturity date (applicable to loans with a term of less than one year (including one year)), and the loan bears interest on a daily basis and repays the principal and interest on a monthly basis;

(4) To repay the loan applied by the borrower to the bank in advance, part of the loan amount can be repaid in advance, which is generally an integer multiple of 65,438+00000 or 65,438+00000, and will be repaid after the bank issues a new repayment plan, which is the same as the change of the due repayment amount, but the new repayment period shall not exceed the original loan period.

(5) Pay off all the loans in advance: that is, the borrower can pay off all the loans in advance by applying to the bank. After repayment, the lending bank will terminate the borrower's loan and handle the corresponding cancellation procedures.

(6) Pay back as you borrow: interest is calculated on a daily basis after the loan, and interest is calculated on a daily basis. It can be settled in one lump sum at any time without penalty interest.