Local governments cannot lend money to banks, but state-owned companies managed by local governments can lend money to banks for a specific project. At present, China's financial supervision policy restricts local government financing platforms from lending to banks, and state-owned companies should meet the relevant conditions. If it is only a government department, it is because the department is not profitable and does not aim at profit. The collected taxes and fees are managed by the budget and cannot be returned independently. The bank loan contract is a civil act between equal subjects. The government and the bank are not equal. The court itself is a part of the government and has no right to enforce government assets. Therefore, government departments cannot be borrowers. This is a legal understanding.

In fact, many government debts are borrowed by state-owned enterprises. If the subject refers to these liabilities, it depends on the terms of the policy. I have the impression that the Ministry of Finance has regulations No.87 and No.50 to limit government debt. The reason for formulating policies is mainly to consider a series of unstable factors such as excessive government debts and the inability of the government to repay them, which will push up land prices and trigger financial system risks. This is due to economic considerations and will change with the changes in the economic situation.

In fact, BOT, BT, entrusted agent construction and government purchase, including many PPP now, are also government liabilities in essence.

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Government loans are loans from government development funds, which are generally only aimed at the development of key companies in provinces and cities and the alleviation of capital chains. Interest is not fixed and can be negotiated without large mortgage.

Bank loans are mainly based on the value loss and discounted price of collateral on the mortgage date.

To put it simply, the government is concerned about the development brought by the money lent to the region, and banks do not do business at a loss.

Institutional loans and bank loans have the following differences:

1, the amount is different: generally speaking, the amount of bank loans will be higher than that of institutional loans, but it is not fixed, and it should be decided according to the individual comprehensive qualifications of users.

2. Different interest rates: the bank loan interest rate is relatively low, generally around 4-8%, while the institutional loan interest rate is generally around 1-2.

3. Different fees: there are no other handling fees for bank loans, while in addition to interest, institutional loans may also need to pay many fees such as information fees, production fees and guarantee fees.

4. Different repayment: the repayment period of bank loans and institutional loans is different, but overdue is not allowed, and it is also overdue collection. The collection of institutional loans will be stronger than bank loans.