1. Character refers to the borrower's honesty and trustworthiness or willingness to repay. If there is any serious doubt about it, it will not be lent.

Second, ability refers to the legal status and management ability of the borrower, whether it is an enterprise or an individual, reflecting its ability to repay debts. Economically speaking, the borrower's repayment ability can be measured by the borrower's expected cash flow.

3. Capital refers to the monetary value of the borrower's property, usually measured by net value (total assets minus liabilities). Capital reflects the borrower's wealth accumulation and is an important factor to reflect its credit status. The stronger the capital, the more he can bear the risk and loss.

4. Operating environment (condition) refers to the economic environment and trend of the borrower's industry in the whole economy. Such as economic cycle, competition, labor relations and political changes. Are considered.

5. Collateral: The borrower should provide certain, suitable and valuable things as loan guarantee, which is the repayment guarantee of the borrower in case of default.

6. Sustainability refers to the length of the borrower's business prospects.

The process of bank loan includes three links: business development and credit analysis, loan execution and management, and loan inspection.

I. Business Development and Credit Analysis

Business expansion is a process in which banks promote their business to existing and potential customers. Credit analysis is the analysis of default risk, which mainly evaluates the loan applicant's willingness and ability to repay. The credit analysis of western commercial banks mainly focuses on six aspects, which are usually called the "6c" principle of credit.

Second, the issuance and management of loans.

The person who has the right to approve the loan shall sign the approval opinions according to the loan plan and the availability of bank credit funds. When issuing loans, banks must sign loan contracts with borrowers.

Third, loan inspection.

Loan inspection is to supervise the use of existing loans and deal with problematic loans in time. Its direct purpose is to reduce loan risk, deal with problem loans and clean up the property of bankrupt borrowers.

The three links in the above loan process are an organic whole. However, effective loan management should separate these three links, which can increase the scientific nature of loans and improve the economic benefits of loans.