Loan risk classification is a risk-based classification method to evaluate the quality of credit assets. According to the degree of risk, loans are divided into five categories: normal, concerned, secondary, suspicious and loss, and the latter three categories are collectively referred to as non-performing loans.

(1) Normal loan, the borrower can perform the contract, and there is no sufficient reason to suspect that the loan principal and interest cannot be repaid in full and on time;

(2) Pay attention to loans. Although the borrower has the ability to repay the loan principal and interest at present, there are some factors that may adversely affect the repayment;

(3) Sub-prime loans, the borrower's repayment ability has obvious problems, and it is impossible to fully repay the loan principal and interest by relying entirely on its normal operating income. Even if the guarantee is implemented, it may cause certain losses;

(4) Suspicious loans, the borrower can not fully repay the loan principal and interest, even if the guarantee is implemented, it will definitely cause greater losses;

(5) Loss of loans, after taking all possible measures or all necessary legal procedures, the principal and interest can still not be recovered, or only a small part can be recovered.