Credit business, also known as credit assets or loan business, is the most important asset business of commercial banks. Credit is the main profit-making means of commercial banks by recovering principal and interest through lending and deducting costs.

since the loan is out of the control of the bank, there is a great risk that the principal and interest cannot be recovered on time. Therefore, a strict loan system should be established on the basis of abiding by the contract law and the general rules of loans, which mainly includes the following systems: establishing loan relationship, loan application, pre-loan investigation, loan approval and issuance, post-loan inspection, loan recovery and extension, and credit sanctions.

Extended information:

Relevant requirements for credit business:

1. The loan object, the customer who applies for a loan from the bank, must meet the provisions of the general loan rules, the three methods and one guide, the credit granting guidelines of commercial banks, the commercial banking law and other basic requirements of the institution for the credit granting object. Credit institutions generally divide customers into two categories. The first category is corporate customers; The second category is natural person customers.

2. The loan amount refers to the specific amount of credit granted to the borrower by credit institutions such as banks. Credit institutions should fully consider the borrower's loan demand, loan purpose, repayment ability, guarantee provided, credit status and so on.

3. The loan term refers to the loan term agreed by the borrower and the borrower in the contract according to relevant regulations. The term of loan shall be determined according to the type, nature and purpose of loan. In the loan contract, the terms of the loan term concluded by the parties must be detailed, specific, comprehensive and clear, so as to ensure the smooth performance of the contract and prevent contract disputes.

4. The loan interest rate is the ratio of the interest amount to the principal in a certain period, usually expressed as a percentage, and it is called the annual interest rate if calculated on an annual basis. Interest rate is a certain reward that the money owner gets from the borrower for temporarily transferring the right to use the money.

Reference: Baidu Encyclopedia Credit Business