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.
The loan term refers to the period from the time when the lender issues the loan to the borrower to the time when the loan is recovered. It is the time limit for the borrower to actually use the loan.
According to the length of the loan period, loans can be divided into short-term loans and medium-and long-term loans:
1), short-term loans with a term of 1 year or 1 year (temporary loans for more than 3 months and less than 6 months), characterized by short term, low risk and high interest rate. They are usually issued in the form of "loans", which are mainly used to meet the needs of borrowers for short-term funds.
2) The medium-term loan term is over 1 year (excluding 1 year) and under five years (including five years), which is characterized by long term, high interest rate, poor liquidity and high risk.
3) Long-term loans are loans for more than 5 years (excluding 5 years), with a maximum of 30 years.