When it comes to loans, we often hear two forms of loans, one is trust loans and the other is entrusted loans. So what is a trust loan? What's the difference between them? Let's take a closer look.

The so-called trust loan is simply a form of financial business in which the trustee issues customers' funds in the form of loans according to the purpose, interest rate and term agreed in advance, and is responsible for collecting the money on time when it expires. When distributing this fund, banks have a high degree of confidence in the choice of distribution objects and the use of funds, and can also use the credit standing and fund management advantages of trust companies to enhance the security of funds.

So, what's the difference between trust loans and entrusted loans?

First of all, the nature of funds is different.

Entrusted loans only make some adjustments to the use of funds. The entrusting unit, which should have allocated funds, should have been replaced by loans from financial trust institutions, and the relationship between entrusting unit and using unit has become a credit relationship between trust institutions and beneficiaries, but this change has not had any impact on the nature of funds. In this regard, trust loans use trust deposits and self-owned funds, and choose the distribution objects and uses independently on the premise of ensuring the beneficiaries' income. Therefore, the nature and uses of funds have changed correspondingly in essence and have the characteristics of bank loans.

Secondly, the impact on credit is different.

Because the entrusted loan only uses the entrusted funds according to the wishes of the entrusting unit, and the entrusted funds can generally be regarded as one-off, it has little impact on the credit plan and the expansion of the credit scale is relatively small. On the other hand, trust loan is a repeated loan form, and the funds will continue to circulate, so it has a great influence on the credit scale and credit plan.

The above is the difference between trust loan and entrusted loan, and I hope it can bring you some help.

Second, what is a trust loan?

Definition of Trust Loan Trust loan refers to the loans granted by trust institutions to self-approved units and projects by using their own funds such as trust deposits within the scope prescribed by the state. Classification of trust loans According to whether the trustor puts forward specific requirements, trust loans can be divided into two categories: Class A trust loans and Class B trust loans; According to the purpose of the loan, it can be divided into fixed assets trust loan, working capital trust loan and temporary working capital trust loan.

According to the different subjects of project selection and the different standards and requirements of clients, loans are divided into Class A trust loans and Class B trust loans.

The so-called Class A trust loan refers to the loan project designated by the client, and the client is responsible for the project risk; Class B loan is the project selected by the trustee, and the risks shall be borne by the trustee accordingly. The difference between trust loan and entrusted loan: the object and purpose of entrusted loan are designated by the client, while the object and purpose of trust loan are selected by the trust institution; The management of entrusted loans is relatively loose, while the management of trust loans is as strict as that of bank loans.

Compared with bank loans, the interest rate of trust loans has a certain floating range. Therefore, trust institutions can support the special and reasonable capital needs of some enterprises under the conditions permitted by national policies. The main business of trust loans trust loans mainly include joint venture investment trust loans, technical transformation trust loans, compensation trade trust loans, housing trust loans and so on.

3. What is a loan trust?

This is from the financing relationship, which can be generally divided into loan category and equity category. Trust companies' loan trusts are generally secured loans. It is safer than equity, because when there is a redemption problem, the collateral can be disposed of and realized. Therefore, compared with other types of trusts, the risk of loans is relatively small.

Four. What is a trust loan?

Loan trust refers to a financial business in which the trustee accepts the entrustment of the principal, distributes the funds deposited by the principal according to the object, purpose, term, interest rate and amount stipulated by the principal (or trust plan), and is responsible for recovering the principal and interest of the loan at maturity. Customers have enough confidence in the object and purpose of the loan, and at the same time, they can make use of the advantages of trust companies in corporate credit and fund management to increase the security of funds.