Entrusted loan payment means that the lender pays the loan funds to the borrower's transaction object for the purposes agreed in the contract according to the borrower's withdrawal application and payment entrustment. However, it should be noted that the main purpose of entrusted payment of loans is to reduce the risk of misappropriation of loans.
At present, there is no clear time for entrusted payment of loans. In principle, it is the day of loan issuance, but different banks have different regulations, which shall prevail. Entrusted payment is a payment method of loan funds, which means that the lender pays the loan funds to the borrower's transaction object that meets the purpose agreed in the contract according to the borrower's withdrawal application and payment entrustment.
Article 29 of the Interim Measures for the Administration of Personal Loans
The lender shall, according to the loan contract, manage and control the payment of loan funds by means of entrusted payment by the lender or independent payment by the borrower.
Entrusted payment by the lender means that the lender pays the loan funds to the borrower's transaction object that meets the purpose agreed in this contract according to the borrower's withdrawal application and payment entrustment.
The borrower's independent payment means that the lender directly pays the loan funds to the borrower's account according to the borrower's withdrawal application, and the borrower independently pays the borrower's transaction object that meets the purpose agreed in the contract.