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What's the difference between consumer loans and credit loans? Let's understand these five points.
There are many kinds of loans. Credit loan, mortgage loan, consumer loan and commercial loan are all common loan products, and each loan method has its advantages and disadvantages. So, what's the difference between consumer loans and credit loans? Let's take a look!

What's the difference between consumer loans and credit loans?

1. Guarantee method

Credit loans can only be secured by the borrower's personal credit qualification, while consumer loans can be secured by credit, mortgage, pledge and guarantee.

2. The purpose of the loan

According to the relevant provisions of bank loans, credit loans can be used for business turnover, car purchase, home improvement, tourism, shopping and other purposes, with a wide range of applications; Consumer loans need to have clear consumption purposes, which can be used for personal and family consumption purposes of borrowers, including house decoration, car purchase, durable consumer goods purchase, tourism, marriage, education and so on.

3. Loan amount

The loan amount of a credit loan is generally less than 200,000, and the bank will provide the corresponding credit amount according to the credit qualification of the borrower; The amount of consumer loans is generally less than 2 million, and the specific amount should be given after comprehensive evaluation based on the borrower's secured loan method, credit record, property qualification and other factors.

4. Term of loan

The term of credit loans is generally not more than 3 years, and the loan term is relatively short; The term of consumer loans generally does not exceed 5 years.

5. Loan requirements

Credit loans generally require higher credit qualifications of borrowers, and it will be difficult to obtain loans in the case of poor credit records. When applying for a credit loan, you generally need to prepare personal ID card, bank card, income certificate, credit report and other materials.

Generally speaking, consumer loans only require borrowers to have comprehensive qualifications such as credit history, property income and loan use. Borrowers can choose to apply for mortgage loans or secured loans in the case of bad credit. When applying for consumer loans, you need to provide ID cards, proof of income, proof of work, proof of loan use and other materials.