The risks of policy pledge loans mainly come from the following aspects: First, credit risk. Mainly in: 1. Subject qualification risk. Life insurance policy involves three subjects: the insured, the insured and the beneficiary. The ownership of its cash value belongs to the insured, and the insured has the right to terminate the insurance contract. Therefore, the borrower who pledges the life insurance policy must be consistent with the insured who pledges the policy. That is, only the insured can become the credit subject of the policy pledge loan. If the borrower does not have the above qualifications, it will inevitably lead to the invalidation of the bank loan rights. 2. The risk of the borrower changing the policy. According to the relevant provisions of the Insurance Law, the insured may request the insurance company to change its policy. During the policy pledge period, the borrower shall continue to fulfill the obligations of paying premiums in accordance with the insurance contract. If the borrower surrenders without the consent of the bank, or changes the information related to the loan in the policy, the cash value of the policy will be reduced or even lost, thus eroding the creditor's rights and interests of the bank. In addition, because the life insurance policy has the derivative function of automatically paying the premium and changing the cash value of the policy, once the insured fails to pay the premium on time, the insurance company will automatically pay the premium for the insured with the accumulated cash value in the policy, so as to keep the policy valid. The insured can also use the cash value accumulated in the policy as the premium, and change the original policy into a similar small policy or an extended policy, which will change the insurance period of the original policy and even endanger the value of the pledged subject matter, thus endangering the realization of the loan rights and interests. Second, the risk of collateral. According to the relevant provisions of the Insurance Law, the pledge policy for applying for loans must be true and effective and meet the pledge conditions. As a pledge, the life insurance policy must be insured for more than two years and the insured must pay for more than two years. That is, only when the insurance period and the payment period are met at the same time, the life insurance policy has cash value. In addition, a valid pledge policy must be a clean piece that meets the pledge conditions. The so-called clean part refers to the normal policy when the policy is pledged, and there is no record of borrowing from the insurance company. If no insurance policy expires and it is within the payment period, or it is resumed after handling the loss reporting formalities, the automatic premium payment clause shall be selected. In the policy pledge loan business, if the above conditions are flawed, it may lead to the lack of guarantee effect of the pledged policy, thus bringing risks to the bank's creditor's rights;