Among them, the party providing the money is called the lender, and the party receiving the money is called the borrower. A loan contract is also called a loan contract. 2. What kinds of loan contracts can be divided into? From the perspective of national management, loan contracts can be divided into two categories: private loan contracts and credit contracts. (1) Private Lending Contract A private lending contract refers to a contract between citizens, in which the lender lends the monetary funds belonging to his lawful income to the borrower, and the borrower returns the borrowed monetary funds and interest when the loan expires. In the form of lending, there are two kinds of private lending contracts: written and oral, with interest, interest-free, low interest and high interest. The state's management of private lending: first, both parties should follow the principles of voluntariness, equality, fairness, honesty and credit; Second, it is not allowed to illegally operate or operate financial business in disguised form in the form of private lending contracts, which will disrupt the financial order and harm the public interests. (II) Credit Contract A credit contract refers to a contract in which commercial banks and credit cooperatives that operate loan business lend monetary funds to legal persons, other economic organizations or individuals for use, and the borrower returns the borrowed funds and interest when the loan expires. According to different standards, different divisions can be made. 1. According to the source of loan funds, loans of financial institutions can be divided into self-operated loans, entrusted loans and specific loans. Self-operated loan refers to a loan independently issued by the lender with funds raised in a legal way. The risk is borne by the lender, and the lender recovers the principal and interest. Entrusted loan refers to the funds provided by customers such as government departments, enterprises, institutions and individuals, which are distributed by the lender (i.e. the trustee) according to the loan object, purpose, amount, term and interest rate. The client decides to supervise the use and assist in recovering the loan. Lenders (trustees) only charge fees and do not bear loan risks. Special loans refer to loans granted by wholly state-owned commercial banks with the approval of the State Council after taking corresponding remedial measures for possible losses caused by loans. 2. According to currency types, it can be divided into RMB loan contracts and foreign currency loan contracts. According to the content of the contract, the source of funds and the purpose of borrowing, it can also be divided into fixed assets loan contract, working capital loan contract, trust fund loan contract and entrusted fund loan contract. Foreign currency loan contracts can be divided into cash loan contracts, buyer's credit contracts and special foreign exchange loan contracts according to contract contents, sources of funds and loan purposes. 3. According to the purpose of borrowing, it can be divided into fixed assets loan contract and working capital loan contract. According to specific loan items, fixed assets loan contract can be divided into capital construction loan contract, technical transformation loan contract and special fund loan contract. Liquidity loan contracts can be divided into liquidity loan contracts, seller loan contracts, special fund loan contracts and land development loan contracts. 4. According to whether the loan contract is secured, it can be divided into two types: credit loan contract and secured loan contract. Credit loan refers to unsecured loan issued by virtue of the payer's credit. Secured loans refer to loans that provide guarantees, including secured loans, mortgage loans and pledged loans. Guaranteed loan refers to the loan issued by a third party in accordance with the guarantee method stipulated in the Guarantee Law, with the borrower undertaking the agreed general guarantee liability or joint liability as the promise. Mortgage loan refers to the loan issued with the property of the borrower or a third party as collateral in accordance with the mortgage method stipulated in the Guarantee Law. Pledged loan is a loan issued with the movable property or rights of the borrower or a third party as collateral according to the pledge method stipulated in the Guarantee Law.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.