The common method for banks to determine the credit line of personal credit loans is the line formula method, which is calculated by formula. At present, one of the most common credit calculation formulas in the market is:
New loan credit = monthly income credit coefficient-old credit. (New credit shall not exceed the maximum credit line stipulated by the bank)
It can be seen from the formula that the applicant's monthly income, credit coefficient, old credit and loan ceiling will all affect the loan credit limit. The following small series ALIEN will give you a detailed introduction to these aspects:
1. Applicant's monthly income: Undoubtedly, the loan credit is related to the applicant's income. After all, bank loans depend on the solvency of the applicant. The stronger the solvency, the smaller the risk of bad debts. In credit loans, banks can not only determine the borrower's monthly income through salary income, but also through many other access schemes. Common items that can identify income are: annual income, monthly salary, monthly tax payment, monthly contribution of provident fund, monthly payment base of social security, monthly mortgage payment, monthly insurance amount of life insurance policy, and real estate value. Different income items can be calculated by a certain formula.
2. Credit coefficient: Credit coefficient is a credit adjustment coefficient set according to business conditions, which is enlarged or reduced on a certain basis for different customer groups. Common credit coefficients are mainly related to customer credit rating, risk rating, income stability, assets, industry nature, project type and family situation.
3. Old credit line: The old credit line refers to the current liabilities of the borrower, usually mainly deducting the existing credit loan line and the used credit card debt line.
4. Credit limit: According to the specific business conditions and bank regulations, there will be a maximum limit for personal credit loans of banks, which cannot be exceeded. Secondly, according to different customer groups, banks will also set ceilings.