Entrusted loan payment means that the lender pays the loan funds to the borrower's transaction object for the purposes agreed in the contract according to the borrower's withdrawal application and payment entrustment. However, it should be noted that the main purpose of entrusted payment of loans is to reduce the risk of misappropriation of loans.

At present, there is no clear time for entrusted payment of loans. In principle, it is the day of loan issuance, but the regulations of different banks are different, and the bank regulations shall prevail. Entrusted payment is a payment method of loan funds, which means that the lender pays the loan funds to the borrower's transaction object that meets the purpose agreed in the contract according to the borrower's withdrawal application and payment entrustment.

Precautions:

Entrusted loan payment is generally suitable for loan funds with a single amount exceeding 5% or 5 million yuan of the total investment of the project, because this payment method is helpful to improve the quality of loan issuance of commercial banks, strengthen the scientific management of the whole loan process, and truly realize the loan management from extensive to refined.

It is worth noting that if the bank finds that the borrower's credit status is declining and the operating profitability is declining in the process of loan issuance, the lender should negotiate with the borrower to supplement the loan issuance and payment conditions, or change the loan issuance method and stop issuing and paying loan funds according to the contract.