First of all, you must submit a loan application to the bank, including your personal situation, production and business projects, amount of capital requirements, amount of self-raised funds, loan collateral or guarantor status and related information.

Then the credit society determines the loan type based on your situation, and determines the repayment period and repayment method based on your repayment ability and the profitability of the business project. Generally, within one year, the interest will be paid off with the principal or One-time principal repayment method, if the period is longer, the principal and interest repayment will be carried out according to the contract, and there are also equal principal and interest and equal principal reduction methods.

One-year benchmark interest rate 6

Loan process

1. Loan application.

The borrower applies for a loan to a local credit union. In addition to applying for rural small loans, applying for other types of loans requires providing relevant information.

2. Credit rating assessment.

Credit unions evaluate borrowers’ credit ratings.

3. Loan investigation.

Credit unions investigate the borrower’s legality, safety, profitability, etc.

4. Loan approval.

Credit unions conduct loan approval according to a loan management system that separates loan approval and graded approval.

5. Sign the contract.

The credit union signs a loan contract with the borrower.

6. Loan disbursement.

The credit union issues loans on schedule according to the loan contract.

7. Post-loan inspection.

The credit union conducts follow-up investigations and inspections on the borrower's execution of the loan contract and the borrower's operating conditions.

8. Loan repayment.

When the loan matures, the borrower must repay the principal and interest of the loan in full and on time. If he wants to extend the loan, he should submit a loan extension application to the credit union before the loan maturity date. The credit union decides whether to extend the loan.