Reasons for loans

There are many reasons for loans. Personal loans are to alleviate the difficulties of using a lot of money in life, and corporate loans are to let enterprises have more development opportunities and viability. Everyone has a different starting point for loans, but people need to have a correct understanding of loans and clearly understand the advantages and disadvantages of loans.

Processing flow of bank loans

1. Primary screening of customer information for loans;

2. Investigate the customer data to check the authenticity of the data;

3. Examine and approve the credit status of customers and decide the loan amount;

4. Give corresponding loans according to customers' needs;

5. Pay a return visit to the loan customers to check their repayment ability and credit behavior;

6. collect the loan repaid by the customer according to the signed contract.

Precautions for loans

1. Lenders should correctly understand their own economic strength and borrow funds within their repayment ability;

2. Choose a loan repayment method that is appropriate to your actual situation;

3. The lender shall repay the agreed loan on time and in quantity.

Reasons for applying for a loan

Reasons for applying for a loan:

1. Due to the family's financial difficulties, my family makes a living by farming, my parents are old and in poor health, so I can't do heavy work, and my funds are uncertain to pay tuition and living expenses. I work part-time at school, save money at ordinary times, live a simple life, get excellent grades at school, and actively participate in school activities. I hereby apply for a national grant from the school, and hope to be approved.

2. In family life, the economy is difficult and life is simple. My family lives in a remote mountain village in Yimeng mountain area. The family of three mainly relies on the banker's harvest of several acres of farmland as the only source of income for the family. Usually, there is no personal income at home, and the high tuition and living expenses during college make the originally difficult family worse.

loan repayment method:

1. Matching principal and interest repayment: that is, the sum of the principal and interest of the loan adopts a method of monthly matching repayment. Housing provident fund loans and commercial personal housing loans of most banks have adopted this method. This way, the monthly repayment amount is the same.

2. Matching principal repayment: that is, the borrower repays the loan in each installment (month) evenly throughout the repayment period, and at the same time pays off the loan interest from the previous trading day to the repayment day. In this way, the monthly repayment amount decreases month by month.

How to write the reasons for the loan application

The reasons for the loan must include the applicant's identity information, work situation, family status, etc., and then count the reasons for the loan. Usually, the most common loan reason is consumer loans, which are mainly applicable to home improvement, marriage, tourism and other aspects. Many banks have specialized loan products to choose from, and some banks need to provide corresponding basis. Another reason is that because of operating loans, borrowers who choose to operate loans need to issue business licenses and other documents, and provide effective business certificates. The last reason is credit lending, which mainly relies on customers' credit information.

Reasons for loan rejection

If the borrower is short of money, then choosing the loan method can help solve the urgent need. No matter whether a borrower borrows money from a bank or a financial institution, the explanation of the reasons for the loan must not indicate repayment by loan. Although repayment by loan is the initial intention of the user to help him reduce some loan burden, most banks will reject the borrower as unable to repay. In addition, the reasons for borrowing cannot be written as investment and financial management, which is risky, and banks or financial institutions will not give money to high-risk people. Usually the reasons can be written as consumption, education, tourism, etc.

How to write the loan reason

Personal reasons for applying for bank loans must be legal and reasonable. You can fill in the reasons for applying for a loan according to your recent situation. The general reasons are buying a car, buying a house, decorating or purchasing goods. Banks will not be too demanding. Do not fill in the reason for repaying the debt. Banks can't judge the risk after borrowing and will refuse to apply for loans.

the loan reason must be filled in according to the most commonly available. Don't make up some reasons. Banks take reasons as the judgment of application, so they must be standardized and reasonable.

Extended information:

Description of short-term loans

1. Operating revolving loan: also called productive revolving loan or commodity revolving loan. Loans issued by enterprises to banks or other financial institutions because their working capital cannot meet the needs of normal production and operation. When handling loans, enterprises should submit annual and quarterly loan plans to banks in accordance with relevant regulations. After the approval of the bank, the borrower of the loan plan shall handle the loan according to the loan receipt.

2. Temporary loan: a short-term loan allocated by an enterprise due to seasonal and temporary objective reasons when the normal working capital cannot meet the needs and exceeds the production turnover or commodity turnover amount. Temporary loans shall be subject to the method of "fixed loans by loans". The loan term is generally 3 to 6 years, which is used for the specified purpose and returned according to the accounting period.

3. settlement loan: the amount borrowed by the enterprise to meet the funds needed in transit after the goods are sent out and before the payment is received, when the sales payment is settled by collection and acceptance. If an enterprise collects loans from the bank within the specified time limit after delivery (usually 3 days, but not more than 7 days under special circumstances), it may apply for collection and acceptance to settle the loans. The loan amount is usually calculated according to the collection amount and the agreed discount rate, which is roughly equivalent to the cost of goods sold plus prepaid freight and miscellaneous fees. After the enterprise's payment is recovered, the bank will deduct its loan by itself.

4. Bill discount loan: holders of bank acceptance bills or commercial acceptance bills can apply for floating discount loans when their business turnover is difficult, and the term generally does not exceed 3 months. If the current loan amount is generally the floating face value minus the discount interest, then the discount loan interest is the bill discount interest, and the bank will deduct it in advance when discounting.

5. Seller's credit: Enterprises whose products are included in the national plan and whose quality is in the leading position in the whole country apply for loans from banks because of the approval of installment sales and insufficient production and operation bonuses. Such loans should be repaid in installments according to the progress of payment recovery, and the term is generally 1 to 2 years.

6. Advance deposit loan: the money borrowed by commercial enterprises to issue advance deposits to banks for purchasing agricultural and sideline products. Such loans are issued according to the varieties stipulated by the state and the approved plan standards, and special account management is implemented. The loan period shall not exceed one year at most.

7. special reserve loan: the money borrowed from banks by commercial wholesale enterprises approved by the state for reserve commodities. This kind of loan must be earmarked, and the loan period is determined according to the approved reserve period.