(1) Normal loan: The borrower can perform the contract, and there is no sufficient reason to suspect that the loan principal and interest cannot be repaid in full and on time. (2) Pay attention to the loan: Although the borrower has the ability to repay the loan principal and interest at present, there are some factors that may adversely affect the repayment. (3) Subprime loan: The borrower's repayment ability has obvious problems, and it is unable to repay the loan principal and interest in full by relying entirely on its normal operating income. Even if the guarantee is implemented, it may cause certain losses. (4) Suspicious loan: The borrower can't repay the loan principal and interest in full, even if the guarantee is implemented, it will definitely cause heavy losses. (5) Loss loan: After taking all possible measures or all necessary legal procedures, the principal and interest can not be recovered, or only a very small part can be recovered.

Second, what are the characteristics of the five categories of loans: normal, concerned, secondary, suspicious and loss?

1In May, 1998, the People's Bank of China formulated the Guiding Principles for Loan Classification, requiring commercial banks to classify loan quality into five categories according to the actual repayment ability of borrowers, that is, according to the degree of risk, loans are classified into five categories: normal, concerned, secondary, suspicious and loss, and the last three categories are non-performing loans.

Next, the definitions and characteristics of the five classifications will be introduced in detail.

1. Definition of normal loan

Refers to the loan that the borrower can perform the contract and has no sufficient reason to suspect that the principal and interest cannot be repaid in full and on time.

Main features:

1) The borrower's production and operation activities are normal, the operating efficiency is good, the financial management is standardized, and the main financial indicators and cash flow structure are reasonable;

2) The borrower has a strong willingness to repay, pays the principal and interest normally in the Bank and other banks, and has a good credit record;

3) The borrower has no significant warning signal;

4) The major shareholders, senior managers and organizational management structure of the borrower have not changed, which is not conducive to loan repayment;

5) The guarantee is complete and effective, the guarantor's business activities and financial status are normal, and the collateral/pledge is in good condition;

6) Credit files and important documents shall be kept intact;

7) The borrower's settlement transaction is normal.

2. Pay attention to the definition of loan

It means that although the borrower has the ability to repay the principal and interest of the debt at present, there are some factors that may adversely affect the repayment, and the continued development may affect the repayment of the debt.

1) Although the principal and interest are not overdue, the borrower is suspected of maliciously evading bank debts by means of merger, reorganization or division;

2) Borrowing new loans or loans that need to be repaid by other financing methods;

3) The borrower fails to use the funds according to the agreed purpose;

4) The borrower defaults on interest or/and principal, repays in installments and advances;

5) The borrower's debts in other banks are already bad;

6) Loans issued in violation of relevant laws and regulations or credit approval procedures;

3, the definition of subprime loans

It means that the borrower's repayment ability has obvious problems, and it is impossible to fully repay the principal and interest of the debt by relying entirely on its normal operating income. Even if the guarantee is implemented, it may cause certain losses. The loss of principal and interest of such loans is generally not expected to exceed 60%.

1) If the borrower defaults on the interest or/and principal, the installment repayment is overdue, and the loan advance is from 9 1 day to 1 year (inclusive), the interest receivable will no longer be included in the current profits and losses.

2) The borrower maliciously evades bank debts by means of merger or division, and the principal or interest is overdue.

4. Definition of doubtful loans

It means that the borrower can't repay the principal and interest of the debt in full, and even if the guarantee is implemented, it will definitely cause greater losses. The loss of principal and interest of such loans is generally not expected to exceed 90%.

1) Default of interest or/and principal, overdue installment repayment and advances exceeds 1 year;

2) The borrower has been seriously insolvent, with serious operating losses and serious cash flow shortage;

3) The loan will suffer heavy losses, but the amount of losses cannot be determined due to factors such as the borrower's reorganization, merger, disposal of collateral, pending litigation or incomplete execution.

5. Definition of loss loan

It means that after taking all possible measures or all necessary legal procedures, the principal and interest are still unrecoverable, or only a very small part can be recovered. The loss of principal and interest of such loans is generally expected to be above 90%.

1) The borrower and guarantor have been declared bankrupt according to law, but they cannot pay off the loan after legal repayment;

2) Although the borrower has not terminated its legal person status, its production and business activities have stopped, the borrower has existed in name only, and there is no hope of returning to work, and it is confirmed that it cannot be repaid;

3) The borrower suffers from major natural disasters or accidents, resulting in huge losses, unable to obtain insurance compensation, and is confirmed unable to repay part or all of the loan, or the loan that has not been paid off after insurance compensation;

4) Overdue loan projects approved for write-off by the State Council;

5) The borrower is revoked, closed or dissolved according to law, and the legal person qualification is terminated, and it is confirmed that the loan cannot be repaid;

6) The borrower and guarantor have no property to execute, and the bank is still unable to recover the loan after termination, dissolution or suspension of execution;

Extended data:

Number of days overdue for five-level loan classification

M 1 is 0 to 30 days (inclusive), M2 is 3 1-60 days (inclusive), M3 is 6 1-90 days (inclusive), and M4 is 91-kloc-0/20 days (inclusive).