What is the difference between a business loan and an ordinary small loan? Entrepreneurship loans have obvious advantages over ordinary commercial small loans. So, what are the differences between the two types of loans?

1. Different groups of applicants

Entrepreneurship loans are suitable for individuals who have certain production and operation capabilities or are already engaged in production and operation activities and who apply for funds for starting or re-starting a business.

Small loans are suitable for natural persons with no bad records, stable income and the ability to repay.

2. Application conditions are different

Application conditions for business loan:

1. Have full capacity for civil conduct and be under 50 years old.

2. Hold an industrial and commercial business license, tax registration certificate and relevant industry business license issued by the industrial and commercial administration authority.

3. Engage in legitimate production and business activities, the project has development potential or market competitiveness, and has the ability to repay the principal and interest of the loan on schedule.

4. Have good credit standing, comply with laws and regulations, have no bad credit and debt records, and be able to provide mortgages, pledges or guarantees recognized by banks.

5. Have a fixed residence and business premises in the handling institution.

6. Open a settlement account in the bank and handle daily settlement through the bank account.

7. Other conditions specified by the bank.

Application conditions for ordinary small loans:

1. Have a legitimate occupation and a stable source of income (monthly salary income must be more than 1,000 yuan), and have the ability to repay the loan principal and interest on schedule ;

2. The borrower's unit must be an administrative, enterprise, or institution recognized by the bank and have a good cooperative relationship with the bank, and the bank must pay wages on its behalf;

3 , Abide by laws and regulations, have no illegal behavior or bad records;

4. Open a personal settlement account at the Industrial and Commercial Bank of China, and agree to the bank deducting the principal and interest of the loan from the designated personal settlement account;

5. Other conditions specified by the bank.

3. Different preferential policies are enjoyed

Entrepreneurship loans generally enjoy bank interest discounts for several years. At the same time, according to relevant documents, college graduates are required to start their own businesses (excluding national restrictions). Industry), property tax and urban land use tax are halved in the early stage of starting a business (within 2 years).

For those who hold the "Employment and Unemployment Registration Certificate" (attached with the "College Graduate Self-Employment Certificate") who are engaged in self-employment (except for the construction industry, entertainment industry, and sales of real estate, transfer of land use rights, advertising industry, (Excluding real estate agencies, saunas, massages, Internet cafes, and oxygen bars), within 3 years, the annual limit of 8,000 yuan per household will be deducted from the actual business tax, urban maintenance and construction tax, education surcharge, and personal income tax that should be paid in that year.

Ordinary small loans are carried out according to the interest rate set by the bank, and do not enjoy interest discount policies or tax preferential policies.