The difference between bank credit and loan: bank credit. Credit granting is similar to credit card, which gives users a certain amount of money and can be used at any time in a certain period of time. However, credit loans generally require real estate mortgage; Bank loan. An economic act in which a bank issues loans to individuals or enterprises at a certain interest rate and repays them at an agreed time limit. Credit refers to the funds provided by commercial banks to customers of non-financial institutions, or the guarantee of compensation and payment responsibilities that may occur to customers in related economic activities.

Credit classification

Credit is divided into short-term credit and medium-and long-term credit according to the term. According to whether it is reflected in the financial statements, it can be divided into on-balance sheet credit and off-balance sheet credit. On-balance-sheet credit includes loans, project financing, trade financing, discount, overdraft, factoring, borrowing and repurchase. Off-balance sheet credit includes loan commitment, guarantee, letter of credit, bill acceptance, etc.

loan

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.

Loan principle

The "three principles" refer to safety, liquidity and efficiency, and are the fundamental principles of commercial banks' loan operation. Article 4 of People's Republic of China (PRC) Commercial Bank Law stipulates: "Commercial banks should operate independently, bear their own risks, be responsible for their own profits and losses, and be self-disciplined, and take safety, liquidity and efficiency as their operating principles."