Obtaining a loan from a bank is the most reliable and available loan method. The bank's strong financial strength, good reputation, numerous outlets and convenient and fast settlement methods are unmatched by other institutions. At the same time, reasonable financial advice from banks has the effect of guiding and helping their own operations. However, the threshold for banks is not low, and there are relatively many procedures for obtaining loans. The whole financing process needs to wait for some time.

Disadvantages of bank loans

1, there are many procedures, and it is relatively complicated to handle loan business in the bank.

2. The collateral requirements are very strict. For small and medium-sized enterprises, bank loans need collateral or third-party guarantee, and their requirements for collateral are very strict.

3. Higher credit requirements. Enterprises and enterprise legal persons need to have high credit records. Otherwise, it is difficult to pass the audit.

Advantages of bank loans:

1. At present, there are many preferential policies for bank loans, especially for small and medium-sized enterprises. At present, many banks still follow the call of the corresponding countries.

The speed of bank loan is accelerating. As long as you submit the loan information according to the requirements of the bank, you can get the bank loan quickly.

3. Low interest rate cost. Compared with private lending institutions and small loan companies, the bank interest rate is definitely much lower, which can reduce the repayment cost for borrowers.

4. Low cost, generally speaking, it is a channel with the lowest loan cost on the market at present. The interest rate of general loans is determined according to the specific circumstances. General loans with high credit, loans with low interest rates and low credit will have high interest rates.

5. The source of funds is stable. For banks, we must know that their strength is very advantageous and their funds are sufficient. For small and medium-sized enterprises, as long as they apply for loans, they will immediately sign contracts and issue loans.

Legal basis:

Article 39 of the Law of People's Republic of China (PRC) Commercial Bank shall abide by the following provisions on the management of asset-liability ratio: (1) The capital adequacy ratio shall not be less than 8%; (2) The ratio of the balance of current assets to the balance of current liabilities shall not be less than 25%; (3) The ratio of the loan balance to the capital balance of a commercial bank to the same borrower shall not exceed10%; (4) Other provisions of the State Council Banking Regulatory Authority on asset-liability ratio management. If the asset-liability ratio of a commercial bank established before the implementation of this law does not meet the provisions of the preceding paragraph after the implementation of this law, it shall meet the provisions of the preceding paragraph within a certain period of time. Specific measures shall be formulated by the State Council.

Brief summary:

What are the disadvantages of bank loans?

1, a lot of formalities.

2. The collateral requirements are very strict.

3. Higher credit requirements.