What are the risks of the lender's loan?
1, credit risk
Also known as default risk, it refers to the possibility that the borrower is unwilling or unable to repay the loan for various reasons, thus causing losses to the lender. Now there are more and more people who lend money, and the use of funds is varied, so the risk of default faced by lenders is even greater.
2. Interest rate risk
Interest rate risk refers to the financial losses that interest rates may bring to banks as the market changes. Banks mainly rely on deposit and loan spreads to obtain expected returns, and excessive interest rate risk will pose a great threat to banks' expected returns and capital.
3. Liquidity risk
If banks can't or can't get enough funds in time at a reasonable cost to cope with asset growth or pay due debts, liquidity risk will occur at this time. For banks, the low quality of credit assets and serious capital precipitation are the main factors affecting the liquidity of banks in China, and the risk of non-performing loans is the most important part of liquidity risk.
What are the risks of loans to borrowers?
1. Before the loan is issued, the risk that the borrower needs to face is very small, and the risk mainly exists after the loan is obtained. After the bank issues the loan, the borrower must repay the principal and interest on time in each installment. If overdue, bad records will affect personal credit, seriously affect life, and even it is difficult to apply for loans in the future;
2. If the borrower chooses a loan object other than a formal financial institution such as a bank, the risk of the loan will increase, because you are likely to fall into a loan scam. For novice borrowers, it is best to check in advance whether their loan targets are state-approved lending institutions, and then choose the company they trust after weighing.
In a word, the risk of loan is mainly borne by the lender. As long as the borrower chooses a formal lending institution and can repay the loan on time, the risk you take is not as terrible as you think. Interested friends can go.
Understand that as a formal financial institution, there are many products, low threshold and fast lending, and everyone's rights and interests can also be guaranteed.