Starting with the basic concepts, this paper sorts out the connections and differences between these common loan varieties. Before introducing these basic concepts formally, let's grasp these loan categories from a big framework.
First of all, loan extension, loan repayment and loan renewal without repayment belong to loan restructuring in a broad sense, in which loan extension and loan repayment belong to loan restructuring in a narrow sense; If the loan is not repaid, it does not belong to the narrow sense of loan restructuring.
In a narrow sense, loan restructuring refers to the adjustment of contract terms by the borrower due to the deterioration of financial situation or inability to repay the loan, which generally includes loan extension, loan repayment, interest reduction and exemption, partial principal reduction and exemption, repayment mode adjustment (including repayment time and interest rate adjustment), and change of guarantee conditions. For example, the pledge of financial pledge becomes real estate mortgage, mortgage becomes guarantee, and guarantee becomes credit. All the above forms are concessional loan restructuring.
According to the Guidelines on Loan Risk Classification in 2007 (YJ [2007] No.54), the loans that need to be restructured should at least be classified as subprime loans. During the observation period of at least 6 months, the classification level of restructured loans shall not be increased. After the observation period, loans shall be classified in strict accordance with these guidelines.
Non-preferential loan restructuring does not belong to the narrow sense of loan restructuring, such as the recent hot non-repayment of loans.
Repaying old loans, new loans (revolving loans) and revolving loans (credit granting) do not belong to the category of loan adjustment. Among them, the end of the last loan contract and the beginning of a new loan are recovered; Revolving loan is a common name of revolving credit, which refers to the behavior of using it many times within the prescribed credit line and paying it back with the loan.
I. Loan extension
In fact, the loan extension period has been clearly stipulated in the General Rules for Loans promulgated by 1996. The so-called loan extension means that the borrower should apply to the lender to extend the repayment period of the original loan before the loan expires, so that the borrower can continue to use the loan. The loan extension is actually a change in the repayment period of the loan contract, that is, the loan cannot be repaid on time when it expires, and the financier is approved to extend the repayment time. As shown in the figure below:
For example, Enterprise A borrowed a one-year working capital loan from Bank B on February 27th, 20th/Kloc-0th/7th. By 20 18, 10, 15, Enterprise A found that on February 26th this year, 65438 may not be able to repay due to cash flow problems. At this point, Enterprise A immediately applied to Bank B for loan extension. With the approval of the bank, the loan period is extended for half a year to June 26, 20 19.
It should be noted that the loan extension should be based on the consent of the bank. According to the borrower's application, the bank investigates the borrower's failure to repay the loan according to the contract, re-evaluates the borrower's solvency, and then decides whether to agree to the extension. For borrowers whose operating conditions deteriorate and cannot be repaid through operating cash flow, measures should be taken in time to preserve assets, and the loan quality should not be concealed by extending the loan term.
If the bank agrees to issue loans after examination, it shall sign a deferred repayment agreement with the borrower in time. 1030 10 can not only express the meaning that the bank allows the extension, but also clearly stipulate the extension period.
If the bank does not agree to the extension of the loan, even if the borrower applies for an extension, the failure to repay the loan on time still constitutes a breach of contract and is treated as overdue loan.
Generally, there is no limit to the number of loan extensions, but the extension period will be limited. In fact, the extension is only the need of the financier to deal with the liquidity within a certain period of time, so there is a strict time limit in the extension laws and regulations. Next, let's take a look at the provisions of different laws and regulations on loan extension.
All these are.
In real business, general commercial loan banks will lend money at one time, and it is often based on the special situation of enterprises. For example, enterprises can't repay on time to cope with the short-term liquidity problem of enterprises, and enterprises apply to banks to extend the repayment period.
Maximum loan term: No matter any loan, there is a maximum loan term, that is, the original loan term plus the extended loan term shall not exceed this limit. For example, in the deferred repayment agreement, the loan term (including extension) of a loan of more than one year cannot exceed the longest loan term.
We have given examples of the above situations that can be extended, but not all loans can be extended. For example,
Bridge loan is actually bridge loan, providing short-term funding arrangements for long-term financing in the later period. In essence, the extension is not suitable for bridge loan.
For inter-bank business, inter-bank re-signing is required when the business expires to reduce the impact of extension restrictions.
When signing an extension agreement, the bank shall work out a reasonable extension period according to the length of the loan period and the above-mentioned period and extension restrictions.
As for the interest rate after the loan extension, according to the current system, the benchmark interest rate after the extension is the interest rate of the original loan term plus the extension term. If the term reaches the new term grade interest rate, the loan interest will be calculated and collected according to the new term grade interest rate from the date of extension.
After the signing of the extension agreement, except for the repayment period and loan interest rate, other terms of the original contract are still valid. In other words, the loan extension is a change to the original loan contract, not a new one. At this time, we will find that the loan type will change according to the term. For example, if a one-year short-term loan is extended for one year, the loan will be changed from a short-term loan to a medium-term loan.
Finally, in the process of loan extension, we need to pay attention to the loan extension with mortgage or pledge. For this extension, the lending bank should obtain the consent of the guarantor when signing the Interim Measures for the Administration of Personal Loans with the borrower, and re-implement the loan guarantee measures to ensure that the collateral remains valid and the creditor's rights cannot be suspended.
Generally speaking, from the wind
From the risk point of view, the supervision is cautious about the extension; From the perspective of risk control, banks must be cautious in extending the period and cannot cover up non-performing loans. Although from the recent high-level support for small and micro enterprises and private enterprises, it is required that loans should not be drawn, stopped or pressed; Document 20 16, Notice on Doing a Good Job in the Creditor's Rights Committee of Banking Financial Institutions, directly requires that banking financial institutions with creditor's rights can help enterprises solve their difficulties to the maximum extent through necessary and risk-controlled recovery and loan renewal.
For overdue loans after extension, the interest receivable is no longer included in the current profit and loss, at least classified into subcategories.
Second, borrow the new and return the old.
Borrowing the new and repaying the old refers to the act of re-issuing the loan to repay part or all of the original loan after the loan expires (including after the extension). Borrowing the new and returning the old are generally used for working capital loans.
Borrowing the new and returning the old is essentially the change of the loan term and interest rate in the original loan contract, and its essence is the extension of the loan term in the legal contract. Its special feature is that this loan is only used to repay the loan that has expired before, and the borrower only needs to continue to pay interest to the bank. In fact, this is equivalent to extending the previous loan to the borrower, and the borrower does not have to pay higher interest due to loans overdue. Of course, the effect of borrowing new and returning old is similar to that of loan extension, but one difference between them is that borrowing new and returning old is a process of replacing old cash flow with new cash flow, which belongs to the re-signing of loan contract, and loan extension is only a change to the original contract.
Borrowing the new and returning the old includes two situations. The first situation is to borrow the new and return the old in our bank. For example, when the loan expires, the financier A cannot repay the loan to the bank B as scheduled, and the financier A signs a new loan contract with the bank B to determine the new time, interest rate and amount. At this time, the financing party A and the bank B form a new IOU to replace the previously signed loan voucher. In actual business, Bank B usually marks this loan.
The second case is repayment through other financing methods. When the loan expires, the financier borrows a new loan from another bank to repay the old bank loan. For example, enterprise A borrowed a loan from bank B with a term of 1. After the loan expired, enterprise A could not repay the loan from bank B in time due to temporary cash flow problems, and enterprise A repaid the loan from bank C. ..
From the essence of "borrowing the new and returning the old", we can sum up its basic characteristics:
The loan before 1. has expired; In other words, if the loan contract does not expire, there is no "borrowing new and returning old" loan.
The borrower and the borrower agree to repay the old loan by issuing new loans. The loan contract is a two-way contract, and only when the two parties reach an agreement can the contract be established according to law.
Regarding loan repayment and loan extension, the main comparisons are as follows:
Loan extension
Borrow the new and return the old.
Financial integration party
The extension of the original loan term is a contract change, not a new creditor's right.
The new cash flow replaces the old cash flow and forms new creditor's rights.
Melting prescription
There is no need to re-credit, nor does it repeatedly occupy the bank credit line and loan line.
If the letter of credit has expired, it is necessary to extend the period of the letter of credit.
The lender will increase the credit line by one point and restore the credit line to its original state on the day after completion.
point of time
Before the loan maturity date
After the loan expires (including after the extension)
Original term of the loan
If 1 year short-term loan is extended 1 year, the loan will be changed from short-term loan to medium-term loan.
If banks issue 1 year current loans to enterprises, they are essentially new loans. When classified by loan term, both original loans and new loans should be counted as short-term loans.
Third, repay the old and borrow the new (recover the loan)
Borrowing the old and returning the new refers to the behavior of the borrower to apply for a loan from a financial institution again because of the needs of production and operation after repaying the original loan with its own funds. From this definition, there is a significant difference between the time point of repaying old loans and borrowing new loans: repaying old loans and borrowing new loans are to repay old loans first and then borrow new loans; Borrowing new loans to repay old loans means borrowing new loans to repay old loans, so borrow new loans first and then repay old loans.
Although returning the old to the new and borrowing the new to the old is just reversed, it looks similar, but the essence is very different: borrowing the new to the old belongs to loan restructuring in a narrow sense; Borrowing the old and returning the new belongs to the normal new loan business of banks.
Fourth, revolving loans.
Revolving loan (credit) refers to a loan method in which the borrower applies, provides guarantees or credit conditions that meet the requirements of the bank, and gives the borrower the highest amount of credit after the bank's credit approval, and the borrower can use it to repay the loan and recycle it within the validity period of the credit line. Personal credit loans, including credit cards, and working capital loans applied by enterprises based on liquidity calculation, mostly adopt this model.
Revolving loan, or revolving credit, focuses more on bank credit. Credit granting refers to the behavior that banks directly provide financial support to customers or guarantee customers' credit to third parties in related economic activities. Note that credit extension is different from loans. Loans are loans issued by banks or other credit institutions to borrowers, which must be repaid within a certain period of time and pay interest. Credit granting is a concept of risk control. Customers' demand for banks includes not only loans, but also bills and letters of credit. The scope of credit is wider than that of loan.
From the above definition, we can see that revolving loan has the following basic characteristics and advantages:
1. Balance control and recovery. In other words, the loan is controlled by the balance, and the borrower can match the amount used each time within the limit and term. After the loan is returned, the loan can continue to be recycled until it reaches the highest balance or expires.
2. Pay back as you borrow, and use money flexibly: the borrower can withdraw money flexibly at any time, or repay the money.
Note: The total validity period of revolving loans is generally not less than 3 years. After this period of time, the bank will re-issue credit and set relevant conditions. In addition, during the validity period, each loan has a term, and the financier can repay in advance. Once the repayment period is exceeded, it will also become overdue.
In order to understand the basic operation form of revolving loan more clearly, we will take credit card as an example to explain. Credit card is the total credit line granted by the bank to the cardholder. Cardholders can borrow any loan within the credit line of the current month and repay it within a certain period or in advance of the next month. At the same time, they can continue to borrow it next month, return it next month, and so on.
In revolving loan, as long as the credit period is not full and the remaining credit limit is not exceeded, the borrower can apply for the next loan. Of course, banks need to set up separate accounts for each loan and repayment in revolving loans.
Verb (abbreviation of verb) loan replacement
There is no such term as "replacement loan" in the types of credit products of banks. Replacement loans describe loans from the perspective of loan purposes.
There are two main forms of loan replacement. The first is that banks lend money to enterprises, and enterprises use loan funds to repay loans from other banks. Simply put, it is to borrow money from one bank to repay the loan from another bank. The second is that banks lend money to enterprises, and enterprises use loan funds to repay shareholders' loans. There may be multi-layer loan replacement in both modes (that is, the original loan has been replaced many times).
Note that in both cases, if one loan is used instead of the other, the two loans must have the same purpose. In the monitoring of the use of funds, we call it the "penetrating principle", that is, once we pass it, we can always see the use of funds in the first-hand loan, thus preventing the misappropriation of loan funds.
To simplify the situation, we only analyze a loan replacement. In this case, the first hand is a bank loan. The loan replacement bank may require the customer to provide the original loan credit contract and withdrawal notice, and if necessary, it may require the customer to further provide the loan purpose certificate (related contracts and invoices for the use of funds) for cross-verification; In the second case, the first hand is the shareholder's loan, and the loan replacement bank needs to strictly examine the use certificate of the funds borrowed by the shareholders, so that the enterprise can provide the relevant contracts and invoices for the use of the funds to prove the authenticity and consistency of the use of the loans before and after.
Loan replacement also appears in personal housing mortgage loans. For example, customer A borrowed money from Bank B to buy a house, and later found that the loan interest of Bank B was relatively high, while the interest of another bank C was relatively low. At this time, the operation of customer A is to apply for a loan from Bank C first, and pay off the remaining loan from Bank B with the borrowed money. In order to limit the vicious competition between banks, the monetary and credit departments of local central banks have repeatedly banned this behavior and supervised it through local self-discipline mechanisms. If there are reports from the same industry, it will inevitably affect the macro-prudential evaluation of "competitive behavior".
It is worth noting that in the general loan replacement, if there is no secondary mortgage, or the bank does not accept the secondary mortgage, it may need to find a bridge-crossing party or a third-party guarantor, otherwise it will be difficult for the bank to lend money to the financier without any risk control (until the financing is restored to the bank's loan, the collateral can be released and mortgaged to a new lender).
Because the purpose of loan replacement is not well monitored, it may involve the problem of idle funds. 2065438+In March and April of 2007, the "Three Arbitrages" clearly regarded illegal loan replacement as "idle funds", and the specific provisions are as follows:
(A) credit "idle"
(2) Whether the off-balance sheet financing of the Bank violates the rules and replaces the off-balance sheet financing of other banks. It is used for enterprises to raise new debts and repay old debts, and the funds are not really used for production and operation;
(4) Whether there are phenomena such as illegal issuance of "bridge loan", taking bank funds for private lending and investment in high-interest industries.
VI. Non-repayment of loans
2018165438+19 October, at the closed-door meeting of private enterprise financing in Beijing, Li, head of the preparatory group of Beijing Banking Insurance Supervision Branch, proposed that further promoting the implementation of the loan renewal policy for small and micro enterprises could solve the problem of difficulty in crossing the bridge after the loan of high-quality enterprises expired. However, private enterprises should also be clear about our loan renewal business, and don't confuse loan renewal, loan repayment and extension, which is essentially different.
In fact, as early as 2065438+July 2004, Document No.36 issued by China Banking and Insurance Regulatory Commission stipulated that the loan must be extended if the principal is not repaid. For small and micro enterprises that still have financing needs and temporarily encounter financial difficulties after the maturity of revolving liquidity loans, banking financial institutions can conduct loan investigation and review in advance according to the requirements of new loans after they take the initiative to apply. Small and micro enterprises that meet the five conditions may apply for loan renewal after passing the examination by banking financial institutions.
If a banking financial institution agrees to renew the loan, it shall sign a new loan contract with small and micro enterprises before the original working capital revolving loan expires. If a guarantee is needed, it shall sign a new guarantee contract, implement the loan conditions, settle the existing loan through the new loan, and allow small and micro enterprises to continue to use the loan funds. The so-called loan renewal without repayment of principal means that after the loan expires, small and micro enterprises can directly renew the loan to repay the principal without spending 1 cent.
On July 25th, July 25th, 20 17, the Notice on Promoting the Healthy Development of Poverty Alleviation Microfinance issued by the China Banking Regulatory Commission (Yin Jian Fa [2065438+07] No.42) continued to propose that for poor households who still need money when the loan expires, banking financial institutions should be supported to intervene in the loan investigation and evaluation in advance. During the poverty alleviation period, there is no need to repay the principal under the premise of controllable risks.
When the business system was updated on 20 18, the outstanding loans were formally included in the reporting system of 1 104, and the option of reporting outstanding loans was added in S(F)63.
In fact, the purpose of not repaying the principal and renewing the loan is to solve the temporary capital turnover of small and micro enterprises, that is, to alleviate the pressure of small and micro enterprises operating normally to use external high-cost bridge funds to transfer loans. By directly renewing the loan, it saves the examination and approval time of repaying the loan first and then applying for the loan, and solves the problem of capital cost caused by the enterprise in order to repay the loan during this period.
For example, small and micro enterprise A began to lend to Bank B from 1. After the loan expires, the enterprise is not unable to repay the loan, but it may cost a lot to repay the loan on time, and the enterprise still needs to continue to apply for the loan. Enterprise A obtains another loan directly from Bank B by renewing the loan, which is used to repay the loan due before.
Suppose that enterprise A only has a credit line of 6.5438+0 million in Bank B, and Bank B temporarily increases the credit line of enterprise A to 2 million in order to renew the loan business, and enterprise A borrows 6.5438+0 million from the bank to repay the previous 6.5438+0 million. After the repayment is completed, the credit line of enterprise A in Bank B is restored to 654.38+0 million.
In practical business, banks need to identify the renewed loan separately in the credit system after handling the renewed loan business, establish the monitoring and analysis mechanism of the renewed loan business, improve the frequency of inspection and evaluation of the risk classification of renewed loan, prevent the renewed loan from manipulating the loan risk classification artificially, and cover up the real risk status of the loan.
The amount of bank B's renewed loan should be the same as that of enterprise A's last outstanding loan, and the loan funds will be temporarily transferred between the bank credit account and the enterprise settlement account. Enterprise A shall authorize the bank to transfer the renewed loan funds back to the enterprise repayment account in time to prevent the enterprise from illegally occupying the renewed loan funds or having legal disputes with it.
Here, we emphasize the amount of renewal of loans. Generally speaking, the amount of renewed loans cannot exceed the balance of the last outstanding loan. For example, Li, the head of the preparatory group of Beijing Banking Insurance Supervision Branch, also mentioned at the closed-door meeting of private enterprise financing on June 9 165438+ that "last time we borrowed 3 million yuan, the loan renewal was extended to 5 million yuan, which is not called loan renewal, and the loan expansion is not a loan renewal".
Then, is it a renewal to recover part of the funds and then issue a loan with less principal than the original loan? For example, an enterprise borrows 5 million yuan, repays 6.5438+0 million yuan in advance, and the remaining 4 million yuan applies for loan renewal before maturity. Is it included in the statistics of non-repayment of loans? If the enterprise voluntarily repays the loan in advance under the original contract, the remaining 4 million loans will be renewed in the basic spirit of not paying back, but the difficulty here lies in how to judge whether the enterprise voluntarily or the bank suppresses the loan. In order to control the risks of small and micro enterprises, some banks require enterprises to compress part of the principal during the loan renewal process. To some extent, this behavior alleviates the trouble of high capital cost of U-turn, which does not meet the basic requirements of non-repayment.
If the loan is not repaid, it can really reduce the financing cost for the enterprise and effectively solve the pain point of high cost of U-turn capital. However, there is still a problem with the renewal policy, which is that it is easily used by banks to hide non-performing loans, resulting in deviation in the five-level classification. Therefore, what kind of small and micro enterprises meet the conditions for loan renewal is also clearly stipulated in the No.36 document of Banking Supervision.
To renew a loan without repaying the principal, five requirements must be met:
1, operating according to law, which is a condition that most enterprises can meet.
2. Normal production and operation, sustainable operation ability and good financial status. In other words, enterprises actually have cash flow to repay the principal and interest of loans, but raising repayment funds at one time will affect the profits of enterprises.
3. Good credit status, strong repayment ability and willingness, and no bad behaviors such as misappropriating loan funds, owing loans and interest.
The original revolving loan of working capital is normal and meets the conditions and standards for issuing new revolving loans of working capital. It means that an enterprise can apply for a working capital loan again after repaying the loan and meeting the conditions of bank credit access.
Other conditions required by banking financial institutions.
Li, head of the preparatory group of Beijing Banking Insurance Supervision Branch, also mentioned in the closed meeting of private enterprise financing on June 9 165438 that the loan renewal business is an incentive policy, not a rescue policy, and should meet five characteristics:
First of all, the production and operation of enterprises are normal;
Secondly, the corporate debt repayment credit record is good;
Third, enterprises should invest and serve the national environmental protection policy;
Fourth, the loan cannot be misappropriated;
Fifth, the loan extension cannot exceed the loan term and amount in the original commercial contract.
The object of non-repayment of loans is mainly small and micro enterprises. Circular 36 only liberalized the loan renewal policy of small and micro enterprises. Small and micro enterprises themselves include production and operation loans of small enterprises, micro enterprises, individual industrial and commercial households and small and micro enterprise owners. Therefore, in addition to renewing loans for enterprises, individual industrial and commercial households and small and micro business owners can also renew loans without repayment.
In reality, more medium-sized enterprises also need to renew their loans. Some banks also renew loans to large and medium-sized enterprises, and the cells of large and medium-sized enterprises are open. They are worried about whether they will check compliance issues after reporting supervision. The author thinks that we should judge from the core principles of five-level classification. No matter who the borrower is, as long as the borrower can fulfill the contract and there is no sufficient reason to suspect that the principal and interest of the loan cannot be repaid in full and on time, it can still be classified as a normal loan. However, if we only cover up non-performing loans by renewing loans, it may violate the principle of prudent operation.
In essence, non-repayment of loans is actually borrowing new loans to repay old ones, but compared with traditional borrowing new loans to repay old ones, non-repayment of loans is special, and there are still differences between them, mainly in the following aspects:
In terms of handling conditions, non-repayment of loans is more stringent. In some cases, due to poor production and operation, enterprises cannot repay loans normally, so they restructure loans by borrowing new ones and returning old ones; Although the loan renewal business is also to borrow the new and return the old, its prerequisite is that the enterprise's production and operation are normal and its financial situation is good, but recovering the loan will increase the financing cost of the enterprise. This leads to different risk classifications of borrowing new loans and repaying old loans without repaying principal.
In terms of loan classification, the bank's recognition of borrowing the new and returning the old:
However, Document No.36 [20 14] clearly stipulates "scientifically and accurately classify loan risks". Banks should, according to the operating conditions of enterprises, strictly follow the basic principles and classification standards of five-level risk classification of loans, fully consider the borrower's repayment ability, normal operating income, credit rating and guarantee, and reasonably determine the risk classification of renewed loans. Those who meet the standard of normal classes are classified as normal classes.
In the scope of application, there are some differences between borrowing the new and returning the old without returning the principal:
Compared with non-repayment of loans, borrowing new loans to repay old ones has a wider scope of application, which is suitable for those enterprises or individuals who encounter temporary capital turnover difficulties or changes in enterprise management system, resulting in the inability to repay bank loans normally.
Loans are mainly suitable for small and micro enterprises, aiming at alleviating the pressure of small and micro enterprises operating normally to use external high-cost bridge funds to transfer loans.
abstract
Based on the basic concepts, this paper introduces the differences and relations among loan extension, loan repayment, loan repayment, loan extension without compensation, loan replacement and revolving loan. Finally, regarding this article, we summarize the following points:
Narrow sense of restructuring loans includes loan extension;
Narrow loan restructuring loans do not include non-repayable loans;
There is no relationship between revolving loan and restructuring loan;
Although the position is reversed, the essence is very different;
Loan replacement is a kind of concession loan restructuring behavior.
Harbin Arbitration Commission (hereinafter referred to as Harbin Arbitration Commission) is the only permanent civil and commercial arbitration institution established by Harbin Municipal People's Government in August 1996 in accordance with the Arbitration Law of People's Republic of China (PRC).
According to the arbitration agreement of the parties, Kazakhstan and China accept contract disputes and other property rights disputes between citizens, legal persons and other organizations with equal subjects at home and abroad, mainly including contract disputes such as sale, gift, loan, lease, financial lease, contracting, construction engineering, transportation, technology, storage, warehousing and entrustment.
When you sign a contract, you need to sign an arbitration clause in the contract.
The standard arbitration clause is as follows:
Any dispute arising from or related to this contract shall be submitted to Harbin Arbitration Commission for arbitration in accordance with its arbitration rules. The arbitral award is final and binding on both parties.
Model text of supplementary arbitration agreement:
Disputes arising from XX contract between the two parties are now submitted to Harbin Arbitration Commission for arbitration in accordance with its arbitration rules. The arbitral award is final and binding on both parties.
Agreed delivery terms:
The address information filled in by the signatory of this contract will serve as the delivery address of all written documents such as notices, letters and legal documents. If the relevant documents delivered to this address are not signed or refused to be signed, the date when the documents are returned shall be regarded as the date of delivery.
Harbin Arbitration Commission
Tel: 0451-82815701
828 15702
Fax: 045 1-828 15770
Address: Daoli District, Harbin
Fushun Street 1
Related questions and answers: