Entrusted loan refers to the loan provided by the principal and issued, supervised and recovered by the trustee according to the loan object, purpose, amount, term and interest rate determined by the principal. As an entrusted bank, banks can handle entrusted loan business of RMB and other convertible foreign currency funds. Foreign currency entrusted loan business must comply with the relevant provisions of the state on foreign exchange control.

When the Financial Advisory Office is informed that the client has applied for entrusted loan business, the trustee shall ask him to issue a power of attorney for entrusted loan business.

Entrusted loan business belongs to the intermediate business of banks. The trustee does not bear any loan risks, only charges fees, does not advance funds, does not introduce borrowers to the principals, and does not accept entrusted loans with unclear loan purposes and no designated borrowers.

Clients of entrusted loan business include clients, trustees, borrowers and guarantors.

1. The principal refers to the unit or individual that provides entrusted loan funds, including government departments, enterprises and institutions, individual industrial and commercial households, insurance companies, fund companies, investment management companies and natural persons.

2. The trustee refers to the domestic branch of the bank that has the right to engage in entrusted loan business.

3. The borrower refers to the enterprise, institution, legal person, other economic organization, individual industrial and commercial household or natural person determined by the client to obtain entrusted loans from the trustee.

4. Guarantor is the unit or individual recognized by the client to provide guarantee for the borrower.