Preferential loans of rural commercial banks are formal financial products and small consumer loans issued by banks in accordance with state regulations. All financial services of this product are strictly regulated, with high safety and legitimacy, which is widely recognized by the society.

Loan means that banks, credit cooperatives and other institutions lend money to units or individuals who use money, and generally agree on interest and repayment date. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds.