1. Different contract definitions

A loan contract means that the parties agree that one party will transfer ownership of a certain type and amount of currency to another party, and the other party will return the same type and amount within a certain period. Currency Contract.

A loan contract refers to a financial institution as the lender that accepts the borrower's application and provides loans to the borrower. An agreement whereby the borrower returns the principal of the loan and pays interest on the loan when due.

2. Borrowing and lending objects are different

The borrower is generally an individual or a company. The borrower borrows money from the lender, returns the loan when it is due, and pays the interest stipulated in the contract.

The object of the loan contract is usually a banking institution. The lender shall use the loan in accordance with the purpose of the loan stated in the contract and shall not violate the state's restrictions on operations, franchises, and laws and administrative regulations that prohibit operations.

3. Different ways of establishing contracts

The establishment of a loan contract requires unified negotiation by both parties. When both parties sign (stamp) the contract, the contract is established. Performance begins after the contract is established, and establishment and performance are separated.

The loan contract requires the borrower to prove his repayment ability and social credit standing to the banking institution. The loan contract can only be signed after the bank has reviewed it and there are no objections.