Consumer loans, also known as consumer loans, are loans issued by commercial banks and financial institutions to consumers on the basis of consumer credit for purchasing durable consumer goods or paying other expenses. Consumer loans were developed after the Second World War. Commercial banks offer consumer loans on a large scale because of the increasingly fierce competition in the financial industry. In order to seek development, commercial banks need to explore new business areas. Moreover, the economic development in the western region was relatively stable after the war, and individuals had relatively reliable monetary income. Coupled with the increasing number of credit reporting agencies, banks can know the credit status of borrowers at a lower cost and ensure the safety of loans, so consumer loans have developed.
Common consumer loans in the market include personal loans for studying abroad, house decoration, purchasing durable goods and even buying a car. In terms of types, consumer loans include residential mortgage loans, non-housing loans and credit card loans, which have the characteristics of wide consumption purposes, high loan amount and long loan term. The rapid development of consumer loans has played an important role in selling products and promoting production development.
What are the uses of consumer loans?
Banks have clear regulations on the use of personal consumption loans. Generally speaking, it can be used in tourism, wedding, education, car purchase, furniture and home appliances, house decoration and so on. , but can not be used for buying a house, investing, stock trading, etc. If buying household appliances, the bank is required to provide the dealer's phone number and bank account number of the purchased household appliances, and the bank will directly transfer the applied loan to the dealer's account. Although you can also apply for loans to personal accounts, banks will also require applicants to provide proof of use, such as purchase invoices. Therefore, personal consumption loans can't be spent at will. If individuals are found to be fraudulent in the process of applying for loans, they will be regarded as bad credit records. Not only can you not apply for personal consumption loans, but you can't apply for other loans in the future.
Consumer loan application conditions
1. Original and photocopy of the borrower's valid identity certificate;
2. Proof of local permanent residence or valid residence;
3 proof of the borrower's ability to repay the loan. Such as the income certificate issued by the borrower's unit, the borrower's tax bill, insurance policy, etc.
4. Pledge, list of collateral and ownership certificate required for the borrower to obtain the amount of pledge and mortgage, as well as written documents of the owner and the real estate agreeing to pledge and mortgage;
5. A written document that the guarantor agrees to provide the required guarantee for the borrower to obtain the guarantee amount;
6, the guarantor's credit certification materials;
7. Collateral appraisal report issued by the appraisal department recognized by the society;
8. Other documents and materials required by commercial banks.
Consumer loan application process
1. The borrower shall fill in the application form at the loan handling office with valid ID, pledge, mortgage certificate and guarantor's guarantee. After investigating the borrower's guarantee and credit, the bank will reply to the borrower within 15 days.
2. After the borrower's application is approved, it shall sign a loan contract and corresponding guarantee contract with China Construction Bank.
3. During the validity period of the credit line and the available credit line, the borrower can use it at any time. When using it, he has to fill in an IOU to use a single loan. The Construction Bank will transfer the loan funds into the account agreed in the contract.
4. The borrower can recycle the loan within the validity period of the credit line, and the available credit line is the difference between the credit line approved by the bank and the principal balance of each loan under the credit line. After the borrower owes the loan, the available amount will be deducted accordingly, and after the borrower repays the loan principal, the available amount will be increased accordingly.
5. Before the expiration of the credit line, the borrower shall pay off all the loan principal and interest under the credit line, and go through the formalities of mortgage and pledge registration cancellation at the Construction Bank within 20 days after paying off the loan principal and interest, and the loan contract signed between the borrower and the Construction Bank will be automatically terminated.