Bank loan refers to an economic behavior that banks lend funds to people in need of funds at a certain interest rate according to national policies and return them within the agreed time limit. Generally, you need a guarantee, a house mortgage, proof of income and good personal credit information before you can apply.
Moreover, in different countries and different development periods of a country, the types of loans classified according to various standards are also different. For example, industrial and commercial loans in the United States mainly include ordinary loan limits, working capital loans, standby loan commitments, and project loans. In Britain, industrial and commercial loans mostly take the form of discounted bills, credit accounts and overdraft accounts.
General loan limit and standby loan commitment. Ordinary loan line is a form of loan subject to informal agreement. Based on the seasonal and regular characteristics of capital demand, enterprises enter into informal agreements with banks to stipulate the maximum loan amount that banks can provide to enterprises within a specified period, during which enterprises can obtain bank loans at any time. When an enterprise applies for a loan amount, it must explain to the bank the financial status before the loan, and the bank decides whether to grant credit and implement the agreement according to the credit status of the enterprise and its own business requirements. Standby loan commitment is a form of loan agreed in a more formal and legally binding agreement. The enterprise signs a formal loan agreement with the bank, and the bank promises to provide loans to the enterprise within the prescribed time limit and limit, and requires the enterprise to pay the commitment fee to the bank.
Working capital loans and project loans. Working capital loan is a kind of loan form that determines the loan term and amount according to the product sales progress according to the characteristics of long production cycle, large raw material reserve and slow withdrawal of funds. Project loan is a large-scale construction project with high risk and high cost, which has the characteristics of large amount, high risk and high interest rate. The rationality and feasibility of the project is the basis for deciding whether to lend or not, and the recourse of the loan debt is for the project, not for the company and enterprise. For super-large projects, many banks usually provide loans in the form of bank syndicates or syndicates to spread risks.