Legal analysis: When a borrower applies for a pledged loan from a bank, it needs to sign a pledged loan contract. The highest pledge rate of chattels and rights as pledges is no more than 90%, that is to say, the amount of loans obtained by borrowers is less than that of pledges. The personal pledge loan interest rate is usually implemented according to the bank's benchmark loan interest rate, which fluctuates with the change of loan interest rate. When individuals apply for pledged loans, they should compare the interest rates of various lending institutions.

Legal basis: Article 425 of the Civil Law of People's Republic of China (PRC) guarantees the performance of the debt. If the debtor or a third party gives his chattel to the creditor for possession, if the debtor fails to perform the due debt or realize the pledge according to the agreement of the parties, the creditor has the right to be paid in priority for the chattel.

The debtor or the third party specified in the preceding paragraph is the pledger, the creditor is the pledgee, and the delivered movable property is the pledged property.