(1) The borrower's existing operating capacity can only repay the interest, but it is unable to repay the principal. Enterprises are willing to repay interest to ensure that enterprises do not owe interest.
(2) financial discount loans, the funds allocated by the government can only be used to repay the loan interest, and cannot be used to repay the principal when the borrower is unable to repay the loan.
(3) loan restructuring, the government or other financial departments specifically designated to repay the principal or interest. If the borrower is unable to repay, the bank cannot change the designated repayment order.
(4) agreed installment repayment, such as personal housing non-performing loans. If the borrower has accumulated a number of outstanding loans, in the case of partial repayment, the bank will automatically deduct the money in the order of maturity, that is, deduct the due principal, interest and penalty interest first, and then collect the next installment.
(5) If the borrower fails to repay the loan on time, it needs to dispose of the collateral to pay off. If the parties have no agreement on the discount of collateral or the proceeds from auction or sale, they shall pay off in the following order: first, the expenses for realizing mortgage; The second is the interest of the principal creditor's rights; The third is the principal creditor's rights.
(6) If the borrower has multiple loans in the bank, and there are secured and credit loans, the borrower can choose to return the secured loans to cancel the collateral; Banks prefer to recover unsecured loans first to reduce credit risk. If the borrower chooses a secured loan that only pays interest but not principal, it actually does not operate according to the principle of receiving principal first and then interest.
Legal basis: Article 42 of the Law of People's Republic of China (PRC) Commercial Bank, the borrower shall repay the loan principal and interest on schedule.
If the borrower fails to repay the secured loan at maturity, the commercial bank has the right to require the guarantor to repay the principal and interest of the loan or give priority to the repayment of the collateral. Real estate or equity acquired by a commercial bank due to the exercise of mortgage or pledge shall be disposed of within two years from the date of acquisition.
If the borrower fails to repay the credit loan at maturity, it shall bear the responsibility in accordance with the contract.