We must adhere to the principle of "effective repayment" when repaying loans. Not only will the economy not collapse, but the pressure will be less and less. The so-called effective repayment is to make loans less and less. The specific operation is: the interest rate of the new loan cannot be higher than the original loan, and the amount of the new loan should be less than the old loan. The interest rate is not higher than the original interest rate, which ensures that your loan cost is falling, which means that your overall interest expense is lower than in previous years; The loan amount should be reduced to ensure that you are effectively repaying, not snowballing.

Repaying a loan with a loan is the behavior of a borrower using one bank to repay a loan from another bank. The purpose of bank loans is mainly to support the production development and capital turnover of enterprises, so the borrower's repayment sources should mainly be the new profits of enterprises, turnover income of production and operation, etc. Generally speaking, repaying loans with loans should not happen. However, in practice, there are objectively situations that require loan repayment, such as the borrower changing his account and returning the loan from one bank to another. In fact, repayment by loan is to take the loan of one bank as the repayment source of another bank's loan, so repayment by loan is the emergence of a new legal relationship of lending and the termination of the old legal relationship of lending and borrowing.

"Repaying the loan with a loan" is also called "borrowing the new and returning the old". This concept was first put forward by international financial institutions such as IMF in 1980s. Its purpose is to solve the debt repayment problem of Latin American countries and alleviate their financial crisis. China has also used this practice for reference in the practice of foreign debt management, and achieved good results. In China's domestic bank loan business, it is generally believed that the so-called "repayment by loan" means that the creditor and the debtor re-sign a new loan contract under the condition that the old loan has not been paid off, and use the new loan money to pay off part or all of the old loan. However, because the current financial laws, regulations and rules do not clearly define the meaning and nature of "repaying loans with loans", there are many disputes about its own legal attributes and related guarantee issues, which have aroused widespread concern from all walks of life.

In fact, repayment by loan is a loan that the bank has to handle when the borrower is unable to repay the original loan, so it is a bank loan business under a special background. In the bank loan business, repaying loans with loans has become a very common phenomenon. However, with regard to the behavior of "repaying the loan by loan" and the related legal issues such as the guarantee liability caused by it, except for Article 39 of the Supreme People's Court's Interpretation on Several Issues Concerning the Application of the Guarantee Law of People's Republic of China (PRC), there are no clear provisions in the current laws, regulations and rules in China, and there are also great differences in practice.