A loan agreement refers to an agreement to apply for a loan. The so-called "bank loan agreement" refers to the letter of intent issued by the lending bank to the borrower to agree to the loan. Its main purpose is to prove the borrower's credit standing and repayment ability, which has legal effect in essence. However, the loan agreement also has a time limit. Generally speaking, the bank loan agreement is valid within 1-3 months. Different bank loan agreements are slightly different. Some bank loan agreements clearly indicate the loan amount and interest rate. Therefore, within the validity period of the loan agreement, the borrower shall implement the relevant matters agreed in the loan agreement. The above is the content of the loan agreement.

Benefits of bank loans

1, bank loans often introduce some preferential policies to small and medium-sized enterprises and other related institutions or individuals;

2. The efficiency of bank loans is very high. Generally, as long as the user meets the requirements of the bank and the user has collateral or guarantor, he can quickly obtain bank loans;

3. The interest rate is low, and the interest rate of bank loans is relatively low, which is lower than that of private loans or lending institutions and microfinance companies;

4. Low cost. Compared with other financing tools, the cost of bank loans is very low;

5, the source of funds is stable, because the bank itself is strong, and sufficient funds, the source of funds is relatively stable.

This article mainly talks about what borrowing books is about, and the content is for reference only.