Normal loan
The borrower can normally perform the contract and repay the principal and interest, and there are no negative factors affecting the loan principal and interest and full repayment. The bank is fully confident that the borrower can repay the loan principal and interest in full and on time. The probability of loan loss is 0.
Pay attention to loans
Although the borrower has the ability to repay the loan principal and interest, there are some factors that may adversely affect the repayment. If these factors persist, the borrower's repayment ability will be affected and the probability of loan loss will not exceed 5%.
Subprime loans
There are obvious problems in the borrower's repayment ability, and it is impossible to repay the loan principal and interest in full by relying entirely on its normal operating income. Interest needs to be repaid by disposing of assets, financing from outside and even implementing mortgage guarantee. The probability of loan loss is 30%-50%.
Suspicious loan
The borrower can't repay the loan principal and interest in full, even if the mortgage or guarantee is implemented, it will cause certain losses, just because of the borrower's reorganization, merger, mortgage disposal, pending litigation and other factors, the amount of loss is still uncertain, and the probability of loan loss is between 50% and 75%.
Loss loan
Refers to the possibility that the borrower has repaid the principal and interest for free. No matter what measures and procedures are taken, the loan is bound to be lost, or even if a small part can be recovered, the value is very small. From the bank's point of view, it is meaningless and necessary to keep it as a bank asset in the accounts. Such loans should be written off immediately after the necessary legal procedures are fulfilled, and the loan loss probability is 75%- 100%.
This answer is provided by Fuguihua, I hope it will help you. Youyouhua, as the credit brand of Xiaoman Finance (formerly Baidu Finance), provides users with convenient, fast and safe Internet credit services with a maximum loanable amount of 200,000 yuan.