Private lending has the following situations in terms of mortgage methods: 1. Credit lending: The borrower does not need to pledge anything, just issue an IOU. This type of interest is very high, usually 0.5%. More than one day. Lenders are mostly investment companies, which are actually individuals. It can be understood as an underground bank. Has a gangster background. 2. Mortgage lending: The borrower needs to have collateral, usually fixed assets. The official institution is pawn. Borrowers can go to pawn shops for financing with civilian goods (gold, jewelry, securities, etc.) or non-civilian goods (real estate, vehicles, etc.). The interest rate is relatively reasonable. According to the regulations on pawn management, the monthly comprehensive fee for movable property pledge pawn is The monthly comprehensive rate for real estate mortgage pawns shall not exceed 4.2% of the pawn money, the monthly comprehensive rate for real estate mortgage pawns shall not exceed 2.7% of the pawn money, and the monthly comprehensive rate for property rights pledge pawn shall not exceed 2.4% of the pawn money. Of course, in actual operation, pawn shops The rate is generally higher than this, but it is also a normal method. In terms of lending methods, there are some methods such as bank on-lending and cash flow lending. Since China's credit policy requires borrowers to repay the loan once a year, it has given rise to the bank on-lending business that helps borrowers repay the previous loan. Bank on-lending is relatively safe. Of course, this comparison is based on the macro environment where credit policies were relatively loose in the past. At present, due to the bad environment, if you lend money to some small and medium-sized enterprises to help them repay their last loan, it is very unlikely that the bank will no longer lend to them for various reasons, leaving them without the most direct source of repayment. , which is relatively fatal.