Article 21 of China's "General Principles of Loans" stipulates that loans shall not be used for equity investment, and loans shall not be used for speculation in securities, futures and real estate.

Second, if you take it to the stock market, what will happen?

Hello, landlord

You borrow money for stock trading. Although the money is borrowed from the bank, the control is in your hands!

The purpose of your loan has nothing to do with the bank!

What the bank cares about is the interest of your loan and whether it can be repaid in time on the repayment date!

Finally, please lend the stock carefully!

3. Is it illegal to use bank loans for stock trading?

It is illegal to use bank loans for stock trading.

According to the requirements of the regulatory authorities, banks have requirements for the use of loan funds. The applicant shall not use the loan funds for production, operation and investment fields that are explicitly prohibited. The borrower needs to provide a certificate or statement on the use of funds.

Almost all banks, small loan companies and other financial institutions will explicitly let loans flow into the stock market, and it is also expressly stipulated that borrowers are not allowed to buy stocks with their own loans. If you are desperate, you are bound to forge, create false materials and defraud loans. Then once the bank finds out, it will definitely refuse the loan. If the loan has been approved, it can be recovered. If it is serious, it will be accused of defrauding loans.

Extended data:

When banks approve loans, they all define loans according to the application items of users. So generally speaking, if the applicant shares in the name of stock trading, the bank will definitely not approve it. Natural applicants' loans will definitely be in other names, and then the bank will approve them, which is illegal. The loans issued by ordinary banks are basically arranged by individuals themselves, so even banks that violate the rules will not know, as long as they repay the principal and interest on a regular basis.

With the booming stock market, more and more people can't hold back their inner impulses. They want to jump into the stock market and make a lot of money. They not only intend to operate in Man Cang, but even borrow money for stock trading. So, what are the adverse consequences of loan stock trading?

According to the current annual interest rate plus monthly fee, the annualized interest rate of most banks exceeds 15%. Although the stock market seems to be hot at present, the final yield of loan stocks may not be higher than this interest rate. Moreover, because the loan has a fixed term, if the loan is repaid at the bottom of the stock market, investors will only sell it at a low point, which will not only bring additional income, but also lead to loans overdue and increase the stain of personal credit record.