What are the differences between corporate loans and personal loans

I. Different subjects

The borrower of personal loans is a natural person, and its concept refers to the principal and loans issued by banks or other financial institutions to natural persons who meet the loan conditions for personal consumption, production and operation. The main body of enterprise loan is a legally registered enterprise, and its concept refers to an enterprise applying for a loan from a bank or other financial institution at a prescribed interest rate and time limit for the needs of production and operation.

II. Different purposes

Apart from business, personal loans can also be used for consumption, house purchase, car purchase, decoration, travel and so on. The purpose of applying for loans by enterprises is very clear and single, mostly for business operation or not for personal consumption of business operators.

III. Different types

Personal loans can be divided into personal housing loans, personal micro-credit loans and personal non-residential mortgage loans according to different purposes and loan methods. Because the purpose of enterprise loans is clear, its classification is mainly based on the different loan methods. There are working capital loans, fixed assets loans, credit loans, secured loans, and so on.

IV. Different conditions

Most of the requirements for applying for loans by individuals are simple, and they only need to provide collateral or personal credit, assets, loan purposes and income sources. Compared with personal loans, business loans require more information and stricter conditions. Besides the business status and credit of the enterprise, it also needs to look at other comprehensive factors such as the industry and industry policies of the enterprise. Moreover, enterprise loan procedures are complicated and the approval time is long.

Extended information:

What's the difference between a bank and a loan company in handling corporate loans?

1. Requirements for credit

Credit is the most basic requirement. Both banks and loan companies need borrowers to meet certain conditions before applying, otherwise they will directly refuse. The difference is that banks are relatively strict, and usually have higher requirements for borrowers in credit evaluation. And loan companies can provide different kinds of loans according to borrowers whose credit meets the requirements, that is, the requirements are relatively lower. So people with poor credit are more willing to choose loan companies.

second, the requirements for income

income directly determines whether the borrower has the ability to pay off the loan, which can usually be proved by the running of wages. Banks are very strict in this respect, and they need special proof materials to be effective. For people without running wages, it is basically impossible to apply. The loan company can decide whether to approve the loan application according to the financial proof that the borrower can provide. As long as it can prove that it has the ability to repay, it is possible to apply for a loan.

third, the speed of loan issuance is different

because of the different complexity of the formalities, the speed of loan issuance is also very different. Because the procedures of bank loans are very complicated and the requirements of banks for borrowers are relatively high, it takes a long time to review and the lending speed will be very slow. As long as the loan company meets the conditions, there is no big problem, and usually it can lend money in a few days.

what's the difference between personal loans and corporate loans? Compare it!

Nowadays, many young people give up their steady income and start looking for business opportunities. The most important thing is how to get the first bucket of gold. So should I apply for a personal loan or a corporate loan first? What is the difference between the two? Let's get to know each other.

1. Different subjects

1. Personal loans are generally principal and loans for personal consumption, production and operation, etc. The amount is relatively low, the application threshold is low, and the interest is higher than that of corporate loans.

2. Enterprise loan refers to an enterprise applying for a loan from a bank or other financial institution at a prescribed interest rate and time limit for the needs of production and operation.

II. Different purposes

Apart from business, personal loans can also be used for consumption, house purchase, car purchase, decoration, travel and so on.

the purpose of applying for loans by enterprises is very clear and single, mostly for business operation or not for personal consumption of business operators.

III. Different types

Personal loans can be divided into personal housing loans, personal automobile consumption loans, personal durable consumer goods loans, personal business loans, personal valuable documents, personal micro-credit loans and personal non-residential mortgage loans according to different purposes and loan methods.

corporate loans include working capital loans, fixed assets loans, credit loans, secured loans, and so on.

IV. Different responsibilities

Different from personal loans, if an enterprise cannot repay the loan and goes through the bankruptcy process, the legal person of the enterprise needs to take part of the responsibilities instead of the enterprise.

to sum up, if you plan to raise funds, you can consider personal loans at first, and then apply for corporate loans after the enterprise becomes large, which is easier.

understand the difference between personal loans and corporate loans

It is inevitable that our boss and friends will encounter difficulties in the course of business operation, and at least they can borrow them from relatives and friends. But now many people are reluctant to borrow them from relatives and friends. For one thing, they will lose face, for another, they will be ungrateful, and for another, they will certainly lend them to you if you ask, so at this time, they will apply for loans from banks. However, in the process of borrowing money, many people are not sure what the difference is between personal loans and corporate loans. Let's look down with me.

First, the applicants are different

It is well understood that the borrowers of personal loans are individuals, while the subjects of corporate loans are legally registered enterprises, and their loans refer to loans issued by banks or other financial institutions to applicants who meet the loan conditions for personal consumption, production and operation, and the borrowers repay the principal and interest according to the stipulated loan interest rate and loan term.

Second, the application uses are different

Personal loan applications can be used for personal business or personal consumption other than personal business, such as buying a house and car, decorating, traveling, medical care, etc., while corporate loans are different. In principle, corporate loans can only be used for the production and operation of enterprises, but not for personal consumption.

Third, the application conditions are different

Most applications for loans by individuals are simple, and they only need to provide collateral or personal credit, assets, loan purposes and income sources. It should be noted that although personal loans have simple procedures and quick approval, they are generally small in amount, high in interest and short in term.

compared with personal loans, enterprises need more information and stricter conditions to operate loans. besides their operating conditions and credit, they also need to look at other comprehensive factors such as their industries and industrial policies.

Moreover, enterprise loan procedures are complicated and the approval time is long. However, once an enterprise loan is applied, it usually has a large amount, low interest and long term.

IV. Different responsibilities

When issuing loans, banks or other financial institutions will take into account the treatment that loans cannot be repaid. If an enterprise can't repay the loan and go through the bankruptcy process, the legal person of the enterprise needs to take part of the responsibility instead of the enterprise.

Therefore, business owners and friends, the application for corporate loans is strictly examined and approved, and the purpose of the loans must be earmarked. Never apply for loans in the name of corporate loans for personal consumption, otherwise banks or lending financial institutions have the right to recover the loans already issued, list you as a risk user, or even blacklist you, and you will not be able to apply for loans again.

what are the main differences between personal loans and corporate loans in commercial bank loans?

1. The loan subjects are different. The subject of personal loan is a natural person, and the loan bears unlimited liability; The main body of corporate loans is corporate enterprises, which have limited liability and unlimited liability for loans.

2. Loans are used for different purposes. Personal loans can be used for business or personal consumption; Moreover, loans can only be used for the construction of fixed assets or to supplement working capital.

3. The longest loan term is different. The mortgage period of personal loans can be 3 years or more, while the longest in the actual operation of corporate loans is only 15 years.

4. Bank approval paths are different. Personal loan approval path is relatively short, and the approval procedure is simple; However, enterprise loans have a long approval path and complicated approval procedures.

whether it's a personal loan or a business loan, it's difficult to get money without mortgage. This point is not easy to control, and banks can accept certificates of deposit, accounts receivable, checks, bills of exchange, warehouse receipts and other pledges.

Ways for individuals to apply for loans

The first way: Generally speaking, there are two ways for individuals to apply for loans. If borrowers do not have a formal job and want to apply for loans, they need to use the names of relatives and friends, because they cannot apply for loans without working ability. Of course, if the borrower owns a property or a car, he can apply for a mortgage loan.

second: if the borrower has a stable income from work, he can apply for an unsecured loan, which is the borrower's credit loan. If he wants to apply for a loan successfully, he needs the borrower's personal credit record to be spotless and have a stable income.

Ways for enterprises to apply for loans

The ways for enterprises to apply for loans are different from those for individuals, so it is necessary to write out the basic situation of enterprises, and the contents must be detailed. Among them, we must focus on compiling the income of enterprises and fixed assets investment projects, and also need to compile the basic information of enterprise legal persons.

It is troublesome for an enterprise to apply for a loan. When applying for a loan, it is necessary to explain the loan amount and the purpose respectively. Generally, the loan amount of enterprises is huge, so it is necessary to prepare real information to present to the loan company, and only in this way can we successfully apply for loans.

The above is the "difference between personal loans and corporate loans" explained by Xiaobian. Xiaobian here tells you that there is a problem between corporate loans and personal loans that may be easily misunderstood by everyone, that is, corporate loans, and people often misunderstand corporate loans and corporate loans. Corporate loan means that this person is the representative of the company's note holder and can exercise the loan authority of the legal representative. Corporate loan is in the name of the company with the consent of the legal representative, while personal loan is in the form of assets under his own name.

Legal basis:

Article 11 of the General Principles of Loans of the People's Republic of China, loan term: The loan term shall be determined by both the borrower and the lender through consultation according to the borrower's production and operation cycle, repayment ability and the lender's capital supply ability, and shall be specified in the loan contract. Generally, the longest term of self-operated loans shall not exceed 1 years, which shall be reported to the People's Bank of China for the record. The longest discount period of bill discount shall not exceed 6 months, and the discount period shall be from the date of discount to the maturity date of the bill.