A simple understanding of a loan is to borrow money with interest. Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them.
Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.
A loan contract refers to an agreement that a financial institution, as a lender, accepts the borrower's application, provides loans to the borrower, and the borrower repays the loan principal and pays the loan interest at maturity.
Extended data:
The borrower shall not use the loan to engage in equity investment. Except for a few cases otherwise stipulated by the state, China's company law, relevant enterprise law and enterprise registration system clearly stipulate that the parties to establish a company or other enterprises (including as shareholders of the company) must have the statutory minimum registered capital, and at the time of registration, these funds must be accompanied by capital verification certificates from relevant banks and certified public accountants;
The borrower shall not use the loan for securities and futures speculation;
In addition to the borrower who has obtained the real estate business qualification according to law. No other unit or individual may engage in real estate business with loans; Borrowers who have obtained real estate business qualifications according to law shall not use loans to engage in real estate speculation;
Borrowers may not seek illegal income by borrowing loans. The General Principles of Loans stipulates that the borrower, as an intermediary, shall not transfer the original loan price (interest rate), which will raise the interest rate in the financing market and affect the stability of the financial market.
The borrower shall not violate overseas laws? According to the management regulations, before the RMB is fully convertible in China, the state still has to supervise foreign exchange funds and restrict the qualifications of institutions engaged in foreign exchange to ensure the orderly and safe flow of foreign exchange funds.
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