Replacement loan mainly refers to the replacement of personal housing loans, which are mainly used for commercial housing loans at present. It is a loan issued by a bank to a borrower who has paid in full when purchasing a commercial house, which is used to replace the non-loan debt of his previous house purchase and set a mortgage on the house.

Loan write-off is the abbreviation of "write-off of non-performing loans", which is a system for banks to write off non-performing loans or loan losses according to regulations.

According to the relevant provisions of the Interim Provisions of the Ministry of Finance on the Establishment of Non-performing Loan Reserves for National Specialized Banks, each non-performing loan of local banks should be approved, and each non-performing loan of provincial banks should be approved.

Each non-performing loan exceeding 654.38 million yuan shall be examined and approved by the head office of specialized banks according to the opinions of subordinate banks and provincial central financial institutions, and reported to the Ministry of Finance for the record. In the specific implementation, the amount of approval has been adjusted.

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Not all non-performing loans can be written off, but certain conditions must be met. The central government has strict legal procedures for loan write-offs. It must be a non-performing loan that has not been recovered or reduced through various efforts and has become a non-performing loan.

Bad debts are written off together with profits, so it will reduce the bank's income in that year. However, the general banking regulatory bureau requires banks to have indicators of non-performing loan ratio. Therefore, banks must comprehensively consider profits and bad indicators to decide whether to write off.

According to the policy, bad records are not allowed to be eliminated. The only way to eliminate them is to appeal through the Credit Information Center of the People's Bank of China. If verified, it can be eliminated.