The difference between trust loan and entrusted loan
First, the nature is different.
1. In the entrusted loan business, the trustee has the nature of property management, and mainly transfers the entrusted property according to the instructions of the principal.
2. In the trust loan business, the trustee invests for the client through the loan business similar to the bank.
Second, the form is different.
1. The entrusted loan contract shall be signed by the principal, the trustee and the borrower, or by the principal, the trustee and the borrower respectively.
2. Only the trustor and the trustee sign an agreement in the trust loan contract. The parties to a trust loan contract must have the principal, the trustee and the borrower, while the parties to a trust loan contract only have the principal and the trustee.
Three, determine the content of the loan contract is different.
1. In the entrusted loan contract, the contents of the loan contract (including the borrower, loan term, loan interest rate, etc. ) shall be designated by the principal.
2. In the trust loan contract, the principal rarely interferes with the loan contract, which is independent of the trust contract, and the specific content of the loan contract is decided by the trustee.
Fourth, responsibilities and risks are different.
1. In the entrusted loan, the borrower has the obligation to repay the loan directly to the principal, and the loan risk is borne by the principal; In a trust loan contract, the borrower is a third party outside the contract, and his friend has the obligation to repay the principal directly.
2. The trust institution shall be responsible for the capital safety of the trust loan, and the risk shall be borne by the trust institution.
Reference Douchong Source: Baidu Encyclopedia-Entrusted Loan