Personally, the most fundamental reason for the existence of entrusted loans is national interests and financial requirements. Specifically, there are about three reasons:

First, most banks are state-owned. If social organizations are allowed to profit from banks, it is forbidden to borrow directly from each other without going through banks. To put it bluntly, banks should share a piece of the action.

Second, some social subjects can be audited by banks (it is a procedural procedure);

Third, accommodation management, through the entrusted loan of the bank, can control the loan scale of the bank as a whole, and avoid that the private loan is too large to be found in time.

Extended data:

Operating expenses:

Lending under the entrusted loan mode mainly involves the following expenses:

First of all, when applying for entrusted loans, the client will be charged a fee in proportion according to the agreed terms such as entrusted loan behavior.

Followed by the stamp duty on loan contracts. Generally, for entrusted loan transactions, stamp duty is paid once for each transaction, and stamp duty is paid at 0.5 ‰ of the loan amount for each entrusted loan. Under the cash pool mode with entrusted loans as the main mode, enterprises and local taxation bureaus generally negotiate to determine the total amount of loans within a certain period of time, and pay stamp duty regularly at the tax rate of 0.5 ‰.

Finally, the interest expenses involved in entrusted loans. Under the cash pool model, the interest rate should be within the benchmark interest rate for deposits and loans stipulated by the central bank. Once the interest rate exceeds this range, it may be questioned by the tax authorities because of suspected transfer pricing.

The net interest of entrusted loans shall be listed and taxed, and each interest income shall be paid at 6% of the interest amount. The income tax expenses incurred shall be paid by the enterprise itself.