Supplementary knowledge of loans
Loan refers to the form of activities in which an enterprise or individual borrows certain funds from banks or other financial institutions when the funds at hand are insufficient. Loans often require certain conditions or personal credit as a guarantee. There are three principles in lending, namely, safety principle, liquidity principle and efficiency principle, which are also the fundamental principles of commercial lending. When making a loan, the first thing you need to ensure is the security of the loan. If long-term loans are issued, the income will increase, but the same risks will increase and the security will decrease. Therefore, we must balance the three principles when lending.