There is not much difference between 400,000 bank loans and 400,000 private loans. For the borrower, both are liabilities, which increases the burden on the borrower. Borrowers can use this debt to do what they want, but there are still great differences between them, such as loan interest, the impact of loans on credit investigation and the consequences of overdue.
Judging from the loan interest, the interest of bank loans will definitely be lower than that of private loans, and bank loans will have higher approval requirements for borrowers. Only users with better qualifications can pass the bank's loan approval. These users with better qualifications are less risky and may bring lower risks to the bank, so the bank will give these users lower loan interest. Private lending is aimed at users with average qualifications, and such users are likely to be overdue in the later period. Therefore, the funders of private lending will set higher interest rates for users and offset possible risks through higher interest rates.
Judging from the impact of loans on credit reporting, bank loans will definitely be reflected in users' credit reporting, and whether each repayment is overdue will be reflected in credit reporting, which has a great impact on users' credit reporting. If the user can repay the loan on time, it will have no influence on the credit information. Once the loans overdue is established, it will have a great influence on the personal credit information. Private lending will not be reflected in personal credit information, and it has little impact on personal credit information. However, if private lending is sued after it is overdue, the user's court enforcement information will have prosecution information, which will have an impact on your subsequent financial institution borrowing.
Judging from the overdue consequences, after the bank loans overdue, the bank will collect the users by telephone, door-to-door collection and court prosecution, but the bank will not collect them by rough means, but more by court execution. After the non-governmental loan is overdue, the lender may collect it through some unconventional means, which will have a certain impact on your life and work.
In short, there is not much difference between bank loans and private lending, both of which increase personal liabilities.