Content of credit Credit is a lending behavior between different owners that reflects certain economic relations, a special form of value movement with repayment as a condition, and a credit activity in which creditors lend money and debtors repay it on time and pay certain interest. (gain income by transferring the right to use funds). Credit can be divided into broad sense and narrow sense. Credit in a broad sense refers to the general name of credit activities with banks as the intermediary and deposits and loans as the main body, including deposits, loans and settlement business. Credit in a narrow sense usually refers to bank loans, that is, the issuance of monetary funds with banks as the main body.
The basic principle of credit, the principle of safety
Refers to the bank's efforts to establish and avoid the risks and losses of credit funds in the process of operating credit business.
Liquidity principle
It refers to the principle that commercial banks can recover loan funds within a predetermined period of time or convert credit into cash quickly and without loss.
Profit principle
It refers to the rational use of funds, improve the efficiency of the use of credit funds, maximize profits, and strive to achieve the unity of the bank's own economic and social benefits.
Key business elements of credit business:
1. loan purpose. The purpose of loan is one of the focuses of credit business, and it is also the focus of lender's strict pre-loan review and post-loan inspection. The purpose of the loan must be legal first, and must comply with the relevant laws, regulations and policies of the state, local governments and their subordinate industries and departments; Secondly, it is reasonable and can achieve tangible economic and social benefits or meet the needs of the borrower's basic living conditions. After obtaining the loan, the borrower must use the credit funds according to the agreed purpose, and the economic sanctions will be imposed on the borrower for misappropriation.
2. The source of repayment. The borrower must have a reliable source of repayment, which is also the focus of the lender's strict pre-loan review and post-loan inspection.
3. Borrow money. Including local currency and foreign currency, according to the provisions of the General Rules for Loans, foreign currency loans may not be granted to natural persons without the approval of the People's Bank of China.
4. Loan amount. The loan amount must comply with the lender's business rules, must be within the borrower's loan tolerance, and must be consistent with the purpose of borrowing.
5. Term of the loan. The loan term refers to the period during which the borrower occupies the lender's funds, which is generally calculated from the receipt issued by the borrower. The duration of the loan is closely related to the purpose and amount of the loan. The loan term can be extended appropriately with the consent of the lender, that is, the loan extension.
6. Loan interest rate. The interest rate shall be set according to the loan interest rate and floating range stipulated by the People's Bank of China, which is closely related to the loan term, loan risk and loan status. The longer the term, the higher the interest rate level; The greater the risk, the higher the fluctuation level of interest rate; The loan status refers to the normal or overdue status, and the overdue loan will be charged with penalty interest according to the Loan General Rules and the Loan Contract.
7. Guarantee method. Except for a few credit loans, the borrower must provide reliable mortgage, pledge or guarantee to the lender in accordance with the Contract Law of People's Republic of China (PRC) (hereinafter referred to as the Contract Law) and the Guarantee Law of People's Republic of China (PRC) (hereinafter referred to as the Guarantee Law).
8. Distribution method. The disbursement of loan funds can be divided into one-time payment, multiple payment and cyclic payment. One-time payment refers to one-time full payment of the loan amount; Multi-payment means to allocate part of the loan amount in batches according to the loan contract, and cyclic payment means to be under the control of one loan amount. After repayment, the borrower can apply for loans repeatedly and allocate funds circularly; According to the object of loan fund allocation, it can be divided into creditors and partners who pay the borrower or the borrower, such as the house purchase dealer who only pays the individual housing loan to the borrower.
9. repayment method. Repayment methods mainly include repayment of principal and interest, regular repayment of principal and interest by installments, among which installment repayment is divided into various forms, such as equal repayment method, decreasing repayment method and equal ratio increasing repayment method.
10. repayment method. The repayment methods include cash, check and entrusted deduction. At present, installment repayment is mostly in the form that the borrower opens a current savings account in the loan bank and entrusts the loan bank to deduct money from the account on a monthly basis.
1 1. Liability for breach of contract. If the borrower fails to repay the loan principal and interest as agreed in this contract, the lender has the right to terminate the loan and recover the loan principal and interest paid in advance. If the borrower can't pay off the debt, the lender has the right to dispose of the collateral or ask the guarantor to fulfill the guarantee obligation. The expenses for disposing of the collateral shall be borne by the borrower; The price of the mortgaged property shall be disposed of, and the rest after paying off the lender's loan principal and interest, fines and other expenses shall be owned by the mortgagor and the pledger; If the disposal pledge price is not enough to pay off the lender's debts, the unit borrower (and guarantor) shall bear limited liability with all its property, and the individual borrower (and guarantor) shall bear unlimited liability according to the provisions of General Principles of Civil Law of People's Republic of China (PRC) and General Principles of Civil Law (hereinafter referred to as General Principles of Civil Law).