Provisions of Bank of China on the Use of Personal Entrusted Loans:

The use of personal entrusted loans must comply with the requirements of the Commercial Bank Law and the General Principles of Loans, and loans without specific purposes may not be issued. Loans can be used for the borrower's daily consumption or business and other legitimate capital needs, and are strictly prohibited for the following aspects:

1, projects and industries whose operation, development or repeated construction are prohibited by laws, regulations, regulatory provisions or other national credit policies.

2. Investing in bonds, futures, financial derivatives, wealth management products, equity, etc.

3. As the registered capital, the registered capital is verified or increased.

4. Lend money or provide guarantee to others.

5. Other prohibited purposes stipulated by the state.

The above contents are for your reference. Please refer to the actual business regulations.

Can the entrusted loan fee be included in the capital account?

No, the entrusted loan fee must be charged to the expense account, not to the capital account.

Is it legal to entrust loans for idle funds?

Legal. The entrusted loan of idle funds is protected by law, as long as it is not released, it is legal. The so-called entrusted loan refers to the loan business in which the principal provides funds from legal sources, and the entrusted bank issues, supervises the use and assists in the recovery according to the loan object, purpose, amount, term and interest rate determined by the principal.

Can the registered capital be collected into the fund pool?

Registered capital can be collected into the cash pool, which refers to the registered capital of an enterprise registered in the administrative department for industry and commerce. Cash pool is a kind of liquid cash management product that enterprises or groups use direct transfer of funds or entrusted loans to realize their internal fund concentration, budget allocation and internal financing. Investment is risky, please make a careful decision.

How to declare the repayment of the entrusted loan after it is issued in the payment account to be settled?

(1) Opening an account

1. The account shall be opened in the name of a domestic institution.

2. Foreign-invested enterprises shall open one-to-one capital accounts-foreign exchange settlement to be paid, which shall be used to deposit RMB funds obtained from settlement, and go through various payment procedures through this account. The capital account, domestic asset realization account and domestic reinvestment account of the same name opened by a foreign-invested enterprise at the same bank outlet can be paid by using a foreign exchange settlement account.

3. Account income range: funds transferred from the capital account, domestic asset realization account and domestic reinvestment account of the same name enterprise or domestic equity investment, funds transferred from the same name enterprise or domestic equity investment account to be settled, funds transferred back after legal transfer from the account, funds returned due to cancellation of transactions, RMB interest income and other income registered or approved by the foreign exchange bureau (bank).

4. Account expenditure scope: expenditure within the business scope, payment of domestic equity investment funds and RMB deposits, settlement of accounts with the same name to be paid, repayment of used RMB loans, purchase and payment of foreign exchange or direct external repayment of foreign debts, purchase and payment of foreign exchange or direct external payment by foreign investors, purchase and payment of foreign exchange or direct external payment of current account expenditures and other capital account expenditures registered or approved by foreign exchange bureaus (banks).

The latest management measures for entrusted loans

1. Clarify the business orientation of entrusted loans and the responsibilities of all parties. It is clear that commercial banks are not allowed to identify borrowers, participate in loan decisions and provide various forms of guarantees on behalf of customers;

2. Standardize the sources of funds for entrusted loans. Commercial banks may not accept entrusted loans from other people's funds, bank credit funds, special funds for specific purposes, other debt funds and funds whose sources cannot be proved;

3. Standardize the use of entrusted loan funds. Funds shall not be used for production, operation or investment in fields and uses prohibited by the state, and shall not be invested in bonds, futures, financial derivatives, asset management products, etc. , or as registered capital or registered capital verification, or for equity investment or capital increase and share expansion;

4. Require commercial banks to strengthen the risk management of entrusted loans. The Measures require commercial banks to strictly distinguish between entrusted loan business and self-operated business, and strengthen risk isolation and business management;

5. Strengthen the supervision of entrusted loan business. The Measures clarify that if a commercial bank handles entrusted loan business in violation of regulations, the CBRC or its dispatched office shall order it to make corrections within a time limit.

1. loan: loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.

2. Lending principles: The "three principles" refer to safety, liquidity and efficiency, and are the fundamental principles of commercial banks' loan operation. Article 4 of People's Republic of China (PRC) Commercial Bank Law stipulates: "Commercial banks should operate independently, bear their own risks, be responsible for their own profits and losses, and be self-disciplined, and take safety, liquidity and efficiency as their operating principles." Loan security is the primary problem faced by commercial banks; Liquidity refers to the ability to recover the loan according to the predetermined time limit or realize it quickly without loss to meet the needs of customers to withdraw deposits at any time; Efficiency is the basis of sustainable operation of banks. For example, if a long-term loan is issued, the interest rate will be higher than that of a short-term loan, and the benefit will be good. However, if the loan term is long, the risk will increase, the security will decrease and the liquidity will weaken. Therefore, the "three natures" should be harmonious, so that there can be no problem with the loan.

This concludes the introduction of the differences between entrusted loans, entrusted loans and fund pools. I wonder if you found the information you need from it?