Definition of consumer loan (1)

Consumer loan is a kind of loan that consumers (individuals and families) apply for financing from banks to pay for the purchase of consumer goods and services. Generally, it can be divided into direct loans and indirect loans.

Direct loan refers to a kind of financing provided by financial institutions (banks) to natural persons, families or other cohabiting family members with their own consumption ability.

Indirect loans are loans that financial institutions (banks) issue indirectly through installment payment from dealers to consumers. Generally, it is given to dealers with commercial loan lines. After receiving the installment bill, the dealers provide financial institutions as guarantees or sub-guarantees.

At present, consumer loans generally refer to direct loans; In banks, consumer loans are divided into:

1. Housing loan

2. Housing renovation loan

3. Car loan

4. Credit card

5. Personal microfinance

6. Support tuition loans

7. Other personal consumption loans

The largest consumer loan market in the world is the American market. Paul, a famous American banker Beares once defined consumer loans as follows: consumer loans are loans provided to individuals or families to purchase various goods or services, including installment loans, credit cards, car purchases, yachts, airplanes, house repair loans, student loans, holiday travel loans, etc. However, Paul. Beares also pointed out that the first mortgage and lease loans applied for the purchase of self-occupation are not included. The former is because the market demand and competitive environment of loans are different from ordinary consumer loans and do not belong to the consumer loan department of banks. Although the latter is often the responsibility of the consumer loan department, it is not included in the scope of consumer loans because of different applicable laws and regulations.

References:

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2. What does it mean to borrow money from a bank?

First of all, the accepted definition of loan is a form of credit activity that banks or other financial institutions lend monetary funds at a certain interest rate and must return them. In ancient times, the word borrowing had the meaning of borrowing and giving. There is also a saying that a loan refers to the amount borrowed.

At present, all financial institutions take the word loan as the proper name of lending behavior.

Of course, borrowing and lending are the same thing. Just the definition and statement after the financial agreement.