The characteristic of credit loan is that the debtor does not need to provide collateral or third-party guarantee, but can obtain the loan only by his own reputation, with the borrower's credit degree as the repayment guarantee. For a long time, this kind of credit loan has been the main loan method in China's banking industry. Due to the high risk of credit loan, it is generally necessary to conduct a detailed investigation on the borrower's economic benefits, management level and development prospects in order to reduce the risk. Credit loan business is mainly handled by banks, loan companies and electronic financial institutions.
Generally speaking, credit loans mainly depend on the borrower's credit rating to consider the borrower's loan qualification. It doesn't want the collateral in the mortgage to be liquid. The possible risks of general credit loans are:
1. Repayment willingness
Usually, the bank will judge whether the applicant has a good willingness to repay according to the applicant's credit record and communication. If there are many overdue behaviors in the credit record, no matter how good the applicant's financial ability and repayment ability are, such customers will bring risks to the lending institutions.
2. Solvency
The bank will examine the borrower's bank flow and assets to determine whether the borrower's income is stable. For users with unstable income and no realizable fixed assets, it is definitely impossible to repay the loan on time with a strong will.
3. Implicit liabilities
Implicit liabilities refer to liabilities that are not reflected in credit reports, such as loans between borrowers and friends, usury, etc. , or the borrower provides loan guarantee for others. Even if such users can meet the requirements of bank loans when applying for loans, there is no guarantee that accidents will happen after the loans are successful.
4. Excessive debt
When the borrower has excessive debts beyond his affordability, if he applies for a loan again, it will only bring increasing economic pressure to the borrower, and of course, his repayment ability will be greatly reduced, which will also bring great risks to the lending institutions.
In order to control these risks, first of all, in the loan investigation, it is necessary to verify the borrower's capital demand, purpose and repayment source, implement the guarantee, set a reasonable loan period according to the capital demand, and the staff must handle the loan in strict accordance with the loan regulations. After the loan is issued, it will be classified in strict accordance with the requirements, and the customer will be paid a return visit within 15 days to verify the use of funds and take timely measures if any abnormality is found.