Loan | Pro Laywers

A general
Loans refer to loans for the borrower to provide money and by the borrower servicing business activities according to the agreed interest rate and term. Legal relations in the loan contract, borrowed money as a borrower, loan funds as a.
The lawyer business in bank loan is mainly: review the debit and credit legal qualification; loan participation agreement drafting, negotiation or review; the performance of the contract for both lenders and borrowers to provide legal advice and services in the loan ; loan contract. The lawyer through their involvement in activities of bank loans, assist both lenders and borrowers to sign, fulfill the loan contract, can help clients achieve their business objectives, and business in the prevention and elimination of all kinds of legal risks of loans, loan promote.
This guideline based on the "general rules of the civil law", "contract law", "general loans", "commercial bank law" and China banking regulatory authority (this article refers to the people's Bank of Chinese or China Banking Regulatory Commission) and the Supreme People's court and the relevant provisions of judicial interpretation, major banks to a territory enterprises to provide RMB for a domestic commercial loan fund business, business to provide general counsel for such loans to. This guideline does not apply to syndicated loans, project financing, loan guarantee has the special arrangements for the financing activities.

Two. Relevant qualification of parties
Lawyers in the contractor enterprise loan law business, in order to guarantee the loan contract, legal validity, should first loan contract subject qualification legal.
(a) the borrower eligibility requirements
As the borrower's lawyer, should be based on the provisions of relevant laws to review the borrower of the conditions, provides legal advice to assist borrowers meet loan legal qualification requirements; as the bank's lawyers, should help the banks to review the qualifications, bank lending to borrowers to ensure compliance with the statutory borrow loans.
According to the relevant provisions of the "loan general", as borrower enterprises should be the industrial and commercial administrative organs (or authority) approved the registration of enterprises (thing, other economic) industry corporate. A lawyer shall review the borrower's legal establishment and survival:
1 for the limited liability company and Limited by Share Ltd, should review its business license of enterprise legal person;
2 for foreign-invested enterprises, in addition to the business license of enterprise legal person, shall review the approval certificate for enterprises with foreign investment;
3 for the branch of an enterprise as a legal person, need business license review branch;
4 in addition to natural part of enterprise legal person and does not need to be approved by the Department of industry and commerce registration, shall be enterprises of all types of industrial and commercial administration through the department;
(two) the borrower's loan certificate: Certificate
To effectively reflect the enterprise loan repayment conditions, reduce the credit risk of financial institutions, self-restraint to establish credit management system China people, bank to develop a management card "loan", clear enterprise to receive credit card, in order to be eligible for the loan. The so-called loan certificate, is China banking regulatory authorities registered legal person to enterprise's qualification to domestic financial institutions to apply for loans.
Corporate enterprises in the implementation of the management system of loan card within the city, intends to apply for a loan or a loan repayment mechanism relationship with financial, must apply for. Corporate enterprises can only apply to the issuing authority to apply for a loan card. A legal person enterprise can apply for a loan card. Loan certificate in Universal City Management System of loan card.
(three) the lender qualification requirements
According to the relevant provisions of "commercial bank law" and "general loans", Lender Loans must organs after China banking regulatory approval, hold China banking regulatory organ shall issue the "financial institution legal person permit" or "financial institutions business permit", and by the industrial and commercial administrative management .
As the lender shall reasonably prompt lenders must comply with the law "commercial bank law" and China banking regulators about commercial bank asset liability ratio of the surveillance and monitoring index.

Three. A program of the loan contract
(a) the loan application
The borrower to the commercial bank agencies to apply for loans, a lawyer shall provide assistance to the borrower:
(1) to "loan applications for legal review";
(2) to assist the borrower loan application to perform the necessary authorization procedure;
(3) assist the borrower for legal review on the basic situation of the project.
(two) the loan investigation and approval
After the application accepts the borrower, lender shall cooperate with the lawyer of the bank to the borrower loan legitimacy, security, profitability and other survey, verify collateral, pledge, guarantee, loan determination. This is an important part of business loans, the bank credit funds is safe. The lawyer can prompt borrowers for loans and to cooperate with the investigation and evaluation of bank.
In order to ensure the safety of bank loans, lawyers should also be legal review bank to help customers apply for loans, censorship purposes and include use of the loan in compliance with national laws, regulations, industrial policy and credit policy for the loan, documents conform to the legal requirements, whether the borrower was legally and validly existing, borrowers whether has the legal loan qualification, borrowers have obtained all necessary government approval, borrowers.
In addition, lawyers should be prompted lenders may not grant fiduciary loans. At the same time, people collateral to loan conditions may not be better than other similar borrowers of loans. The relationship between people is:
1 commercial bank's directors, supervisors, managers, credit business personnel and their close relatives;
2 the above personnel or senior management positions in companies, enterprises and other economic organizations.
(three) the drafting and signing of the loan contract
"Commercial bank law" thirty-seventh and "loan general" provisions of article twenty-ninth, all loans by the borrower and lender signed loan. The loan contract usually consists of lawyer, loan contract shall stipulate the category of loans, interest rate, term, use, amount, repayment methods, borrowing rights and obligations of both parties, both parties that the liability for breach of contract and other needs of the convention.

Four. The main contents of the loan contract
(a) the loan contract generally have the following important terms:
Use 1 loan
The use of the loans refer to the using scope of loans. The borrower shall use the loan in accordance with the agreed purpose, can not be used for illegal.
Clearly this item, the borrowers, can protect their own rights to the use of funds; lenders, can monitor the use of funds, control.
The reason to limit loan purpose is: first, if the borrower loan will be used for illegal purposes, in both lenders and borrowers are informed, according to some national laws such as USA method, which will lead to the loan. Even if the lenders in the loan when using this illegal purpose is not informed, once the lender knows this illegal purpose, must prevent the borrower to drawing, so as not to constitute acquiesced in the illegal purposes and forced to recover the loan loss. Secondly, limit loan purpose is to guarantee the repayment of capital. If the loan is not according to the protocol uses to be used, the borrower may due to mismanagement led to the loss of repayment ability. Furthermore, loans for internal management policy may have on the lending industry or sector is limited, government regulations, decrees and sometimes. Finally, the limit loan purposes may also be due to involving the interests of third parties, such as export credit loan project, used only for specific.
"General loans" also stipulates the following on the loan limit:
1 the borrower shall not engage in loans and equity investments, except as otherwise provided by the state.
2 the borrower shall not engage in speculation in securities, futures and so on loans.
3 except for the acquisition of real estate by the eligible borrowers, shall not use the loan to the real estate business; in accordance with the law to obtain business real estate qualified borrowers, shall not use the loan to engage in real estate.
4 the borrower shall not obtain loans for the loan to seek illegal income.

2 of the loan amount
The loan amount is the number of provisions of the loan contract, currency in particular lender to the borrower to provide. This is the main basis for the calculation of interest on loans.
Category 3 loans
According to different lenders can be divided into self loans, entrusted loans and specific loan:
(1) - loan refers to resort to legal means to raise funds independent loans, the risk from the lender, and the lender to recover the principal and.
(2) loans to lenders according to the client to determine the loan object, purpose, amount, term, interest rates to extend, supervision and assistance loan. The lender (the trustee) only charge a fee, does not bear the loan.
(3) the specific loan that is approved by the State Council and the loan losses and take remedial measures enjoined the solely state-owned commercial bank loans. State owned banks and commercial bank, Agricultural Bank of China, Chinese Chinese bank, Construction Bank of China.
According to the different return period can be divided into short-term loan, medium and long-term loan:
(1) the short-term loan refers to the loan period within 1 years (including 1 years) loans. Short term loans are flexible, period is short, strong liquidity, turnover is rapid, requirement. From the practices of financial institutions, mainly has three months, six months, nine months, one year. Short term loans are one of the main businesses of financial institutions.
(2) medium-term loan refers to the loan period in more than 1 years (not including 1 years) to 5 years (including 5 years) loans.
(3) long-term loan refers to the loan period of 5 years (not including 5 years) above loan.
According to the security of loans into credit loans, secured loans and bills discounted:
(1) the so-called credit loan is the borrower fully to his credit as the foundation, do not have to provide collateral for bank can be extracted from.
(2) loan guarantee refers to the guarantee loans, mortgage, pledge loans. To guarantee the loan refers to "guarantee law" provisions of the guarantee to third commitment in the borrower cannot repay the loan, agreed to assume the general guarantee liability or joint liability loans. Mortgage refers to the "security law" provisions of the mortgage to the borrower or the third party's property as collateral loans. Mortgage refers to "guarantee law" provisions of the pledge to the borrower or the third party's immovable property or rights as a pledge loans.
(3) the bill discount refers to grant to purchase borrowers lender is not due to commercial paper of loans.
In practice, according to the use of loan funds, can be divided into working capital loans and loans for fixed asset loans.
Classification of these loans are crossed with each other, general loans in the loan contract type will also relates to the above several. In the loan practice, intuitive machinery division type of loan no positive significance, mainly through the difference between the correct specification.
4 the term of the loan
According to the money supply capacity of the production and operation cycle, repayment ability and the lender by borrowing shall be determined after consultations between the , and in the loan contract.
Self - the longest period of the loan shall not exceed 10 years in principle, for more than 10 years shall be reported to Chinese banking supervision organ. Discount discount period shall not exceed 6 months, discount period is from the discount to the date of maturity date of bill.
The borrower fails to repay the loan, it should be before the loan maturity, apply to the lender for loans. Whether the extension decision by the lender. Apply for loan guarantees, mortgage, pledge loan, should also by the guarantor, collateral, written the pledgor agrees to provide. have agreed, in accordance with the contract.
Short term loan time limit shall not exceed a total of the original loan period; medium-term loan extension period shall not exceed the term of the loan total half; long-term loan time limit shall not exceed a total of. Except otherwise stipulated by the state. The borrower fails to apply for extension or the application for extension is not approved, its loans from the due date the following day, into the overdue loans.
The 5 loan interest
The lender shall be in accordance with the prescribed limits Chinese banking regulators on loan interest rates, determine each loan interest rates, and in the loan contract.
Short term loans (for less than a year, including one year), according to the loan contract with the corresponding grade of the statutory lending rates. Loan contract period, in the interest rate adjustments are not above. Short term loans quarterly bear interest, every quarter twenty at the end of the month to bear interest; monthly settlement, twenty days per month for the settlement day. The specific settlement methods determined by both parties of the loan negotiation. On't loan period pay interest on the loan contract interest rate quarterly or monthly collection of compound interest, overdue loans impose a punitive interest rates after the change in the recovery of profits. Finally, a loan to pay the debt, with the benefit of clear.
Long term loans (a term of more than one year) interest rates to a certain year. Loans (including loans effective date of the contract within a year all funds allocated sub pen) according to the loan contract period determined by the date of entry into force of the loan contract, according to the corresponding grade legal loan interest rate, after each full year (sub pens allocated to the first loan payment date to date), then according to the corresponding grade legal loan interest rates next year to determine the interest rate. Long term loans quarterly bear interest, the last month of each quarter for twenty days to bear interest. On't loan period pay interest on the contract interest rate on a quarterly or compound interest, overdue loans impose a punitive interest rates after the change in the recovery of profits.
Discount discount, according to determine the discount rate disposable charging interest.
Trust loan interest rates by the two sides in no more than the same period in the same grade legal loan interest rates (floating) range determined in consultation; leasing loan rates at the same grade of the statutory lending rates (floating) execution.
The extension of the loan period, the accumulative calculation, the cumulative period reached a new term grades, since the renewal date, according to rollover date listing of the same grade rate of interest; not up to the new period of the grade, according to the rollover date the original level interest rate.
6 drawing
The loan contract is usually specified term loan borrowers can extract, and the provisions of the borrower shall before the withdrawal of several days' notice. The loan contract does not generally require borrowers to take loans obligations, only choice award when the borrower in the loan funds are extracted to the right, but if the borrower is not loans, lenders usually require the borrower to pay a lender loan commitment.
If the lender does not comply with the provisions of the loan contract loan to the borrower, the borrower may require damages, but generally cannot demand. The calculation principle of damages for breach of contract and is, naturally arise when the reasonably foreseeable contracting.
7 repayment
The loan contract to repay the loan to the borrower deadlines and generally have specific provision. The borrower shall, in accordance with the loan contract shall repay the principal and interest of loans in full and on time. Before the lender in short-term loans before the due date, 1 weeks long term loan due in 1 months, shall send notice to the borrower to repay the principal and interest; the borrower shall timely funding, on time.
8 early repayment
The loan contract for the general clause has some limitations, provides more detailed, mainly because lenders in order to ensure that the investment can be expected. The content mainly through the following aspects to be specified:
(1) voluntary early repayment;
(2) mandatory prepayment;
(3) voluntary cancellation of quota;
(4) the specific causes of prepayment and cancel quota, such as tax, market disorder and increased cost.
The 9 prerequisite
The loan contract are not executed immediately upon signature, some time must to some contract until specified conditions have executed, even in loans after execution, often require after each drawing must meet. A prerequisite for these conditions is the loan contract. Only when these pre conditions are ripe, loan personnel have the right loans, loan personnel have an obligation. Prerequisite for different situations and different, can generally be divided into two categories: one category is involve borrowing under the contract and all obligations of the precondition; another loan first class relates to each pen.
Involving loans under the contract and all obligations of the prerequisite of objective, is to enable the lender on receipt of satisfactory written evidence and relevant documents, the contract all the confirmed that the loan legal matters has been arrangement, and he required security has been implemented before, temporarily stop the bear. This is very important for the protection of the interests of lenders. These prerequisites include:
(1) to provide the business license of the company;
(2) provide copies of all the necessary authorization, such as the general meeting of shareholders or the resolutions of the board of directors;
(3) provide the organizational documents such as the articles of association of the company, etc.;
(4) to provide legal opinion (if required);
(5) provide relevant project agreement;
(6) submit a notice of withdrawal;
(7) the representations and warranties made by borrowers in the loan contract signed when , in its loans, still maintained correctly, without any material adverse;
(8) did not occur in any event of default, or may constitute a breach of the other events.
10 representations and warranties
Legal status, the borrower's assets and liabilities, business activities are the basis of bank loan assessment of safety and profitability. For the above any untrue, inaccurate or incomplete description, either intentional or negligent, will enable the bank to draw the wrong conclusion, make violates its true meaning. Therefore, loan borrowers often strict provisions of the representations and warranties for obligations, which require the borrower to its legal status and transaction authorization, government approval, legal status, property status, financial status, business management, project contract, breach of conditions of many aspects such as making statements. And the statement and guarantee not only made in the loan contract signed, often repeated requests to make in the drawdown date. For breach of representations and warranties shall be regarded as default event, the bank will then announced the loan acceleration, and enforce the relevant guarantee.
11 default
Default loan contract generally can be divided into two categories: one category is in violation of the loan contract agreed itself, such as the maturity is not servicing, fails to perform the obligations stipulated in the statement of facts and or guarantee is not correct; another so-called anticipatory breach, events from a symptom appears, the borrower fails to perform the obligations under the loan contract is only a matter of time. After all, its. Typical of such events is the borrower lose solvency.
Anticipatory breach of contract mainly include:
(1) cross default
The formation of credit risk is a from the bud, accumulate until the occurrence of gradual process. Before the repayment deadline bound to, major adverse the borrower's financial business conditions change is likely to affect their performance capabilities, bank in addition to the agreed through general default provisions, set guarantees and other means to ensure timely repayment of debt, can also be in the contract agreement "". The basic meaning is: cross default under the contract if the debtor defaults in other loan contract, the contract is considered as the . In general, creditors is a party fails to perform the obligations under the contract in the grounds, held the responsibility of breach of contract, but the cross default clause breaking the restrictions, it a "pre emptive, after the start" taste, a tries to catch in the borrower other loans the contract debt repayment crisis before taking remedy measures, in order to avoid other than yourself in . The default configuration is not in our current law, but it does not breach of contract law of the relevant law and the spirit of the law, current "contract law" of the unsafe right of defense can be used as the application. Therefore, cross default clause can be used as stipulated in clause into the contract, the borrower comprehensive bank can timely control.
(2) the borrower insolvency
Where the borrower after judicial bankruptcy or no repayment ability, or written document that has become insolvent, or to the creditor transfer of property or the transfer of property advice, that is regarded as the default. This is a warning in the event of default, because when the borrower insolvency, if cannot get rid of the dilemma agreement, it may violate the loan.
(3) had adverse changes in important borrower status.
Because the default event is used to cope with the unexpected situation, from the angle of bank since prior unpredictable, will not be exhausted, therefore, from the aspect of bank will, you'll need a general protection clause, to protect its.
The general provisions in the contract terms, whether because of what reason is caused, also whether borrowers voluntary or involuntary, or regulations is due to a court order or law, caused by, should. The purpose of this provision is to prevent the borrower should default occur due to irresistible factors, to relief the breach of contract should bear.

Five. The loan contract to perform
(a) drawing
The borrower to the lender for drawing according to the loan contract, the lender shall reasonably prompt lawyer:
1 a loan contract is in force. The loan contract in force if conditions have achievement; signed the legal representative or the borrowers, such as non signed by the legal representative, the legal representative of shall submit the power of attorney; loan contract the official stamp;
2 if the loan amount, review the borrower drawing real application: drawing according to whether the contract (state credit loan contract No.); withdrawal amount, interest rate, term is clear; withdrawal application has not been lender approval right;
3 the borrower fill in a project is complete (the category of loans, currency, loan amount, loan purpose, loan period, interest rate);
4 the borrower have contractual prerequisite.
(two) the repayment
1 after the expiration of the loan, lawyers should be prompted lenders to borrowers loan principal and collection. Payment shall be made in written notification, notice by the borrower a written receipt as the interruption of the limitation of actions.
2 in the loan contract, if borrowers authorize the lender when it has not timely repayment under the premise of any from the lender to open an account in active deduction agreed, in accordance with the contract, the exercise of should prompt lenders directly from the borrower account huakou should also interest.
3 on the early repayment of the borrower, the contract can be agreed with the consent in writing of the lender must.
4 the borrower lawyers should be prompted to the borrower according to the amount stipulated in the contract, pay the loan interest on a loan, and loan repayment. Otherwise, the borrower shall bear the liability for breach of contract.
(three) supervision and inspection rights lender in the loan contract to perform

Concept and types, loan

(a) loan concept

Loan refers to the financial institutions creditor status in, or at any time to repay the principal and interest on a regular basis should be under the condition of the monetary funds, ( cash or cash claim ) loans to an asset business of others. In addition, the loan term also often refers to a lender to the borrower loan currency funds.

Financial institutions (especially the commercial banks) to deposit liabilities business together money, most of them through loans for social reproduction. Therefore, according to the management of financial institutions lending business, standardize the contract relationship among lenders and borrowers, to support the development of social economy, improve financial institutions in their own economic benefits, guarantee the safety and soundness of the financial industry, has a very important significance.

Since the reform and opening up, the reform of management system of credit, has been an important content of China's financial system reform. Meanwhile, many of the relevant laws, administrative regulations, the financial institutions lending provisions were made, the legal system of the loan contract also gradually establish and improve. China's loan management and loan contract laws, administrative regulations , mainly include: (1) in May 10, 1995 eighth session of the National People's Congress Standing Committee of the thirteenth meeting of the "people's Republic of China Commercial Bank Law" ; (2) in December 13, 1981 fifth session of the national people's Congress Standing Committee of the fourth meeting of the in September 2, 1993, the eighth session of the National People's Congress Standing Committee of the third revision of the "people's Republic of China Economic Contract Law" ; (3) in February 28, 1985 the State Council issued the "loan contract" regulations; (4) general loans in June 28, 1995 the people's Bank of China released "".

(two) the type of loan

According to several criteria are commonly used, the loans can be classified as follows:

1 - loans, entrusted loans and specific loan. Proprietary loan refers to resort to legal means to raise funds own loans; the risk from the lender, and the lender to recover the principal and interest. Entrusted loan by government departments, enterprises and institutions and individuals entrusted to provide funds, the lender (or trustee) according to the client to determine the loan object, purpose, amount, term, interest rates to extend, supervision and assistance loan; the lender (the trustee) only charge a fee, not bear the risk loans; except otherwise stipulated by the state, the lender (the trustee) not to the principal advance funds. Specific loans, is approved by the State Council and the loan losses and take remedial measures enjoined state-owned bank loans.

2 short-term loan, medium and long-term loan. Short term loans are loans for the year within ( containing a year ) loan; medium-term loan is a loan period in more than a year (not including one year) of less than five years (including five years) loans; long-term loans are loans in five years (not including five years) above.

3 credit loans and loan guarantees. Credit refers to credit loans by the borrower. Loan guarantee loan, including mortgages and loans. To guarantee the loan refers to the "Regulations of the people's Republic of China Law of guarantee" to ensure commitment in the borrower cannot repay the loan to third people, agreed to assume the general guarantee liability or joint liability and loans; mortgage refers to the "people's Republic of China Security Law" provisions of the mortgage to the borrower or the third party's property as collateral loans; loan refers to the "pledge of regulations of people's Republic of China Security Law" to the borrower or the third party's property or rights as a pledge loans.

4 liquidity loans and loans for fixed assets. Liquidity loans refer to loans for working capital loans the borrower needs reasonable in the process of production and operation; fixed asset loan is a loan to meet loan borrowers repair, fixed assets renovation, the construction and expansion of the funding needs and released, including technical transformation loans special fund loans, and loans for capital construction.

5 individual loans and syndicated loans. Individual loans is the exclusive financial institutions as a lender to a borrower loan; syndicated loan is combined with several financial institutions, in a loan agreement according to their respective share to the borrower loan. Take the form of a syndicated loan, a borrower is to meet the need of huge amounts of money, two is to disperse loan risk in between lenders.

6 RMB loans and foreign currency loans. RMB loans granted by the lender to borrowers currency for yuan loans; foreign currency loans granted by the lender to borrowers in foreign currency loans.

Two, financial institutions lending business principles

In order to regulate financial institutions lending business, establish and improve credit management order, to improve efficiency in the use of credit funds, reduce the credit risk, maintain the legitimate rights and interests of both lending, the relevant laws, administrative regulations on China's financial institutions operating loan business put forward a series of principles.

(a) the law principle

Financial institutions operating loan business, shall abide by the laws, administrative regulations and the people's Bank of Chinese issued Administrative regulations. Including : one, must not harm national and social public interests, such as not illegal use of the borrowers of loans; second, to meet the people's Bank Chinese approved scope of business, including the object and scope of loan types,; third, abide by the provisions of the state on the management of interest rate , period ; fourth, obey credit plan national and provisions on the management of the asset liability ratio; fifthly, are not allowed to issue credit loans in violation of the provisions of the relationship between people, the relationship of man and guaranteed loans conditions may not be better than other similar borrowers loan conditions; without the approval of the people's Bank Chinese, not to a natural person for foreign currency loans.

(two) independent management principles

Financial institutions have the right according to the operating conditions, the loan project their own credit funds profit prospects, the borrower's creditworthiness and ability to repay, independently decided to loan with no loans, mortgage loan less. In addition to the specific loan projects approved by the State Council, state owned commercial banks should issue loans , financial institutions have the right to refuse any units and individuals forced loans. In accordance with the provisions of the "loan general", even by the relevant departments to discount loans, commercial banks should also be independent review issue, and in accordance with the relevant provisions of the strict management.

(three) benefit, security, liquidity principle

Financial institutions issuing loans, should be within the scope permitted by law, pursuit to maximize its economic benefit, and fully consider the social benefits of loans, loan guarantees in line with national industrial policy, to meet the needs of national economic and social development. Financial institutions issuing loans, should strictly review, strengthen management, and actively use legal means, to ensure that the loan debt security, prevention and control of credit risk, avoid the loan loss. Financial institutions operating loan business, shall be in accordance with the relevant provisions of the management of the asset liability ratio, control the proportion of long-term loans, liquidity management to strengthen the asset.

(four) equality, voluntary, fair, the principle of good faith

This is the principle of financial institutions in the loan business, processing and the borrower and other related parties (such as the guarantor, collateral, the Pledgor) basic criterion relationship. The legal relationship between financial institutions and borrowers and other relevant parties because of loan, guarantee and the occurrence of, is the civil legal relationship of equality between the main body, the basic principle of civil law must follow the voluntary, equality, fairness, honesty.

(five) the principle of fair competition

This is the principle of financial institutions in the lending business, the basic principles to deal with the relationship between the industry and the. Financial institutions, should be fair competition, cooperation, and shall not engage in unfair competition. Unfair competition of financial institutions in the loan business, mainly for violations of the provisions to raise or lower interest rates, or a raise or lower loan interest rates.

(six) secured principle

According to the "Regulations" and "commercial bank law " general loans, financial institutions issuing loans, in addition to entrust loan, the borrower shall provide guaranty; the lender shall the repayment capability of the guarantor, strictly review collateral, pledge the ownership and value and feasibility of realizing the right to mortgage, pledge by the lender; assessment review,, to confirm the good borrower's credit, it can repay the loan, can not provide guarantee. Visible, financial institutions loans, should be secured for the principle, with no guarantee for the exception. Adhere to the principles for the protection of secured loans, security, has the vital significance.

General procedure three, loan

Financial institutions a normal loans from borrowers, loans made to recover the loans, generally go through the following procedures:

(a) the loan application

Borrowers need loans, should be handling to the sponsoring bank, other banks and non bank financial institutions