The interest on the old loan has been settled; The lender has good repayment ability; There is no bad credit record in the credit report; The bank's purpose of borrowing new loans and repaying old loans must be: banks need to borrow new loans and repay old loans through effective mortgage procedures.

When a bank handles a loan for repayment, it needs to repay to settle the interest on the old loan. The loan principal can be reapplied for repayment, but the interest must be settled. The repayment methods of general bank loans are equal principal and interest method and average capital method.

No matter which way the repayment person adopts, the repayment person must pay off the interest of the bank loan. Banks handle the repayment of old loans for borrowers, focusing on the borrower's ability to repay the principal and interest of loans and personal credit records.

If the repayment person's credit is not good, the bank will refuse to handle the loan for the repayment person. When the borrower's credit is good, the bank needs the borrower to provide proof of repayment ability. As long as the repayment person can pay the principal and interest on time, the bank will handle the loan for the repayment person again.

Banks can only borrow new loans to repay the principal. Different banks have different regulations on loan borrowing and repayment of old loans, and repayment needs to consult the specific regulations of the lending bank. Banks handle loans for borrowers to repay old loans. These loans cannot be used for investment, stock trading or gambling.

What are the conditions for banks to borrow new and return old?

The requirements are as follows:

1. According to Article 9 of the Interim Measures for the Determination of Non-performing Loans: If the loan is not repaid after its maturity (including after the extension) and the new loan is used to repay part or all of the original loan, the non-performing loan shall be determined according to the borrower's actual repayment ability. At the same time, if the following four conditions are met, it is a normal loan:

(a) the borrower's production and business activities are normal and can pay interest on time;

(2) Re-go through the loan procedures;

(3) The loan guarantee is valid;

(4) It is a revolving loan.

2. For those who meet the requirements of Article 9 of these Measures and should be included in the normal loans, the credit management department shall put forward written opinions, and after being audited by the credit risk management department and reported to the competent governor for approval, the accounting department shall handle the transfer procedures.

3. For overdue loans, they should be transferred to overdue loans automatically by the computer system or by the accounting department on the second day after the loan expires; For sluggish loans, the computer system or accounting department should automatically transfer them to the sluggish loan account the day after the overdue loans reach the specified number of years.

Extended data:

The People's Bank of China supervises the identification of non-performing loans of commercial banks and the authenticity of loan quality according to its supervisory duties. The head office of the People's Bank of China is responsible for the supervision of the head offices of wholly state-owned commercial banks and joint-stock commercial banks, and the branches of the People's Bank of China are responsible for the supervision of wholly state-owned commercial banks, branches of joint-stock commercial banks and city commercial banks within its jurisdiction.

The People's Bank of China shall evaluate the non-performing loan identification policies formulated by commercial banks from time to time, and check the implementation of these measures by commercial banks and the true degree of loan quality.

The People's Bank of China may conduct special inspections according to the total amount of non-performing loans of commercial banks and the changes in various regions, and the inspection results will serve as an important part of the supervision and evaluation of commercial banks. The People's Bank of China shall promptly report the problems found in the inspection to commercial banks, which shall formulate specific rectification measures and report the rectification to the People's Bank of China.