This provision is mainly to protect the lender to recover the loan safely. The lender shall inspect and supervise the use of the loan as agreed. The borrower shall regularly provide relevant financial and accounting statements and other materials as required by the lender. This is not only one of the main rights of the lender, but also one of the main obligations of the borrower. This is convenient for the lender to grasp the repayment ability of the borrower in time so as to deal with it in time. In particular, when banks and other financial institutions act as lenders, borrowers are required to provide relevant financial and accounting statements and other information on a regular basis, so as to know the borrower's repayment ability, business activities and financial status in a timely manner through inspection and supervision on the use of loans. This will increase the safety factor of the bank's recovery of loans at maturity, greatly reduce the loan risk and improve the quality and efficiency of capital operation; At the same time, it will also urge borrowers to use and repay loans in strict accordance with the provisions of the loan contract.
Legal basis: Article 672 of the Civil Code. Lenders may inspect and supervise the use of loans as agreed. The borrower shall regularly provide relevant financial and accounting statements or other materials to the lender as agreed.
Article 673 of the Civil Code If the borrower fails to use the loan according to the agreed purpose, the lender may stop issuing the loan, recover the loan in advance or terminate the contract.