The difference between the concepts of 1.
Policy pledge loan, also known as policy loan, means that the policy owner obtains a loan from the insurance company with the policy as collateral, and the policy owner obtains a policy loan because his policy has cash value.
Bank loan refers to the economic behavior that individuals or enterprises issue loans to individuals or enterprises in need of funds at a certain interest rate according to the policies of the country where the bank is located, and return the funds within the agreed time limit.
2. Differences in collateral requirements:
The processing of policy loan business is usually based on the prepaid value of the policy, so the lender is usually not required to provide collateral when processing. Bank loans must require the lender to provide pledge, so the threshold for handling is usually high, and it is usually provided for people with fixed assets.
3. Reserve difference in repayment period:
The repayment period of the policy loan is half a year, which can be extended indefinitely as long as the interest is repaid.
The repayment period of bank loans is usually fixed, and the principal and interest must be repaid in full at maturity.
5. Difference between loan limit and capital limit:
Under normal circumstances, policy loans guarantee that the loan funds can be received within 5 working days. In addition, in terms of financial constraints, a policy loan of several hundred yuan can be operated. Within a limited amount, you can determine the loan amount by yourself, which has good flexibility.
However, bank loans are based on the value of collateral to determine the loan amount, which often has certain limitations.