Credit is to give the lender a certain amount, which can be used at any time in a certain period of time, similar to the credit card amount, but credit loans generally require real estate mortgage with interest, while credit cards have no interest during the interest-free period. Applying for a credit card is also a process of granting credit, but the amount is low. Banks take commissions from consumers as profits, but the profits of credit banks only come from loans.
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Credit loans are divided into circulating credit and non-circulating credit. Revolving credit means that customers can repeatedly obtain loans with a total balance not exceeding the credit line during the credit period. Non-circulating credit means that during the credit period, the accumulated loan amount of customers does not exceed the credit amount.
The characteristic of revolving credit line is that after the customer obtains a certain loan line from the bank, it can be withdrawn in stages and recycled within the time limit. When withdrawing a single sum not exceeding the available amount, the customer only needs to fill in the withdrawal application form, without special re-approval, and can generally withdraw cash within 1 hour. It is more suitable for the individual's capital demand characteristics of "small amount, urgent demand, fast turnover and more retail".
Judging from the current market, many banks have launched the "revolving loan" business. Although the names are different, most of them have the characteristics mentioned above.
Among them, the representative ones are ICBC's "Happiness Loan" upgrade plan, China Bank's personal credit revolving loan, China Construction Bank's personal consumption line loan and Minsheng Bank's personal credit line revolving loan. Other mortgage types, such as the "revolving loan" of SDB, also indirectly provide borrowers with consumption space in other fields.
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