The difference between trust loans and entrusted loans

1. Different natures

1. In the entrusted loan business, the trustee has the nature of property management, mainly based on the client’s Transfer the entrusted property according to the instructions

2. In the trust loan business, the trustee invests for the principal through a loan business similar to that of a bank

2. Different forms

1. The entrusted loan contract must be signed by a tripartite agreement between the principal, the trustee and the borrower, or the principal and the trustee, or the trustee and the borrower must sign an agreement with the same content respectively

2. The trust loan contract must only The client and the trustee sign an agreement. The parties to the entrusted loan contract dispute must be the client, the trustee and the borrower, while the trust loan contract dispute is only the client and the trustee

Three parties , the entities that determine the content of the loan contract are different

1. In the entrusted loan contract, the content of the loan contract (including the borrower, loan period, loan interest rate, etc.) is designated by the client

2 . In a trust loan contract, the client rarely interferes with the loan contract. The loan contract is independent of the trust contract, and the specific content of the loan contract is determined by the trustee

4. Different responsibilities and risk assuming

1. In an entrusted loan, the borrower has the obligation to repay directly to the client, and the loan risk is borne by the client; in a trust loan contract dispute, the borrower is a third party outside the contract and has no direct repayment to the client. Obligation to repay

2. The trust institution is responsible for the safety of the money in the trust loan, and the risks are borne by the trust institution

Baidu Encyclopedia - Entrusted Loan

Baidu Encyclopedia —Trust loan