The purpose of the loan strictly requires the authenticity of the loan purpose. If the bank finds that the actual purpose of the loan is inconsistent with the application purpose in the later inspection, it can be considered as misappropriation of loan funds.
Banks have the right to stop the remaining loans that have not been issued to borrowers, and have the right to require lenders to repay all loan principal and interest in advance. The loan interest rate will also rise. Moreover, in order to prevent the borrower from misappropriating the loan, the CBRC requires that the loan with a certain amount or more must be transferred to the borrower's counterparty account in real time through the entrusted payment of the lender.
The purpose of the loan is to define that the borrower's purpose of obtaining the loan is to engage in production and business activities, or to purchase materials or necessary equipment, or to use it for personal expenses such as house purchase, car purchase and consumption, and the loan will eventually be combined with certain production factors.
Before obtaining a loan, the borrower must determine the purpose of the loan. The clear purpose is not to fool banks and loan companies, but to maximize the economic benefits of loans and prevent loans from being idle. Personal loans are generally used to buy a house, a car, decorate a house, study, travel, see a doctor and so on.