1. Personal loan, also known as retail loan business, has become an important loan business after decades of development. Personal loans refer to local and foreign currency loans issued by banks or other financial institutions to natural persons who meet the loan conditions for personal consumption, production and operation. When a lender issues a personal housing loan, the borrower must provide a guarantee. If the borrower fails to repay the principal and interest of the loan at maturity, the lender has the right to dispose of its collateral or pledge according to law, or the guarantor shall be jointly and severally liable for repaying the principal and interest.

2. The outstanding principal refers to the current loan principal balance, referred to as the principal balance.

3. The loan principal shall be the original loan principal. Their relationship can be expressed by the following simple formula:

Loan principal = repaid principal+outstanding principal.

Extended data

How do individuals apply for bank loans?

1, prepare data. Information required for individuals to prepare loans from banks first:

Including loan application, customer ID card, household registration book, income certificate, marital status certificate and other materials (for customers with spouses, spouse ID card and household registration book are also required). If the customer is a mortgage loan, the property right certificate of the collateral needs to be issued; If you are a customer with unsecured loans, you need to provide a good credit record.

2. apply. After the customer prepares the relevant materials, he can apply for a loan at the bank or the law firm entrusted by the bank, and submit the relevant materials to the bank for review. After paying various fees, customers need to sign a loan contract with the bank as a legal document binding both parties.

3. Payment review. If it is a house purchase loan, the law firm entrusted by the bank will first conduct a preliminary examination of the customer's application, and if it is qualified, the bank will conduct the final loan approval; If the audit fails, the bank will return the relevant information of the customer and the fees charged.

4. Go through other legal procedures. In addition to the contract, the customer also needs to go through some legal procedures. If it is a mortgage customer, the customer needs to register the mortgage in the bank for future inquiry.

5. Bank loans. After the customer's relevant procedures are completed, the bank will approve the loan or report it to the superior for approval according to the borrower's evaluation. Then, the staff will inform the customer of the loan amount, loan term, loan interest rate and other related details, and issue a loan instruction to transfer the loan project to the customer's account.

A way for an individual to apply for a bank loan: mortgage loan-mortgage loan refers to a loan obtained from a bank by a borrower with certain items as a guarantee. Mortgage loan is the most commonly used loan method. Collateral is usually real estate and special movable property, such as real estate, land, machinery and equipment, transportation and so on.

The second way for individuals to apply for bank loans: pledge loans-pledge loans are similar to mortgage loans, and the main difference between them lies in the different projects guaranteed. Pledges are mainly movable property, such as treasury bonds, certificates of deposit, bonds and warehouse receipts.

The third way for individuals to apply for bank loans: credit loans-credit loans refer to loans issued with the credit of borrowers. Borrowers can only borrow money through personal credit, without mortgage or guarantee.

Refer to Zhihu for the answer. Author: Tiger corrects dreamer.