In order to standardize the loan business of financial institutions, establish and improve the loan management order, and safeguard the legitimate rights and interests of both borrowers and borrowers, the General Principles of Loans stipulates that financial institutions should abide by the following principles when operating loan business:

1. Financial institutions shall abide by laws, administrative regulations and administrative regulations issued by the People's Bank of China when operating loan business. Anything that does not conform to the laws and regulations of the state and the administrative rules of the People's Bank of China must be prohibited. Moreover, Article 34 of the Law on Commercial Banks stipulates: "Commercial banks shall carry out loan business under the guidance of national industrial policies according to the needs of national economic and social development."

2. The principle of independent operation. Financial institutions have the right to decide whether to lend or not, whether to lend more or not, and whether to lend less according to law according to the operating conditions of their own credit funds, the profit prospects of loan projects, the borrower's credit standing and repayment ability. Article 41 of the Commercial Bank Law stipulates: "No unit or individual may force a commercial bank to issue loans or provide guarantees. Commercial banks have the right to refuse any unit or individual to force them to issue loans or provide guarantees. "

3. Principles of efficiency, safety and liquidity. When issuing loans, financial institutions should strive to maximize their own economic benefits within the scope permitted by law, and fully consider social benefits. When issuing loans, financial institutions should strictly examine, strengthen management, and actively use legal means to ensure the safety of loan claims, prevent and control loan risks, and avoid loan losses. Financial institutions should control the proportion of medium and long-term loans and strengthen the liquidity management of assets in accordance with the relevant provisions on the management of asset-liability ratio.

4. Principles of equality, voluntariness, fairness and good faith. This principle is the basic criterion for financial institutions to deal with the relationship with other relevant parties (such as guarantor, mortgagor and pledger) in the loan business. The legal relationship between the parties due to loan and guarantee is essentially a civil legal relationship between equal subjects.

5. The principle of fair competition. This principle is the basic criterion for financial institutions to deal with the relationship with their peers in carrying out loan business. They shall compete fairly and cooperate with each other, and shall not engage in unfair competition. Unfair competition in loan business is mainly manifested in raising or lowering the loan interest rate without authorization in violation of regulations, or raising or lowering the loan interest rate in disguise.

6. The principle of guarantee. According to the provisions of Commercial Banking and General Principles of Loans, when a financial institution issues a loan, the borrower shall provide a guarantee in addition to the entrusted loan.