After the bank loan comes out, it is transferred to another third-party account. If there is a real transaction between the lender and the transferee, there is no problem. According to the contract law, paying money to a third party according to the regulations is regarded as the borrower's borrowing obligation. If it cannot be repaid, the borrower needs to repay, and the third party will not bear joint and several liability, but if the guarantee contract is signed, the third party needs to bear legal liability. This is called entrusted payment, which is a way to explain the purpose of your loan. The loan must be entrusted and transferred to a third party, just to ensure the authenticity of the loan purpose.

Definition of entrusted payment:

Entrusted payment is a payment method of loan funds, which means that the lender (a legally established banking financial institution) pays the loan funds to the borrower's transaction object according to the borrower's withdrawal application and payment entrustment, so as to reduce the risk of loan misappropriation.

Definition of loan:

Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.

The repayment method of the loan is as follows:

(1) Equal repayment of principal and interest:

That is, the sum of the principal and interest of the loan is repaid by equal monthly repayment. Most banks have adopted this method for housing provident fund loans and commercial personal housing loans. So the monthly repayment amount is the same;

(2) Repayment of equal principal:

In other words, the borrower will distribute the loan amount to each installment (month) evenly throughout the repayment period, and pay off the loan interest from the previous trading day to the repayment date. In this way, the monthly repayment amount decreases month by month;