When it comes to loans, we often hear two forms of loans, one is trust loans and the other is entrusted loans. So what is a trust loan? What's the difference between them? Let's take a closer look.
The so-called trust loan is simply a form of financial business in which the trustee issues customers' funds in the form of loans according to the purpose, interest rate and term agreed in advance, and is responsible for collecting the money on time when it expires. When distributing this fund, banks have a high degree of confidence in the choice of distribution objects and the use of funds, and can also use the credit standing and fund management advantages of trust companies to enhance the security of funds.
So, what's the difference between trust loans and entrusted loans?
First of all, the nature of funds is different.
Entrusted loans only make some adjustments to the use of funds. The entrusting unit, which should have allocated funds, should have been replaced by loans from financial trust institutions, and the relationship between entrusting unit and using unit has become a credit relationship between trust institutions and beneficiaries, but this change has not had any impact on the nature of funds. In this regard, trust loans use trust deposits and self-owned funds, and choose the distribution objects and uses independently on the premise of ensuring the beneficiaries' income. Therefore, the nature and uses of funds have changed correspondingly in essence and have the characteristics of bank loans.
Secondly, the impact on credit is different.
Because the entrusted loan only uses the entrusted funds according to the wishes of the entrusting unit, and the entrusted funds can generally be regarded as one-off, it has little impact on the credit plan and the expansion of the credit scale is relatively small. On the other hand, trust loan is a repeated loan form, and the funds will continue to circulate, so it has a great influence on the credit scale and credit plan.
The above is the difference between trust loan and entrusted loan, and I hope it can bring you some help.
What is a trust loan? What's the difference between trust loans and entrusted loans?
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 contents 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 has no 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.