What Are the Different Types of Loan Modification Programs?

The main source of profit for commercial banks is credit loans. Because banks face many risks in this financial activity, such as profit risks, credit risks, and liquidity risks. Therefore, in 1995, the People's Bank of China promulgated the Commercial Bank Law. Guiding and binding regulations have been made on the loan activities of commercial banks.

Loan procedure

along with

Reviewers review and assess the lender's qualifications based on the investigator's report and retest

After the loan is issued, the bank

Loan Procedure:

1. Application for a loan. The borrower submits a loan application to the local bank. In addition to applying for small rural loans, relevant information must be provided when applying for other types of loans. The basic information of the borrower and the guarantor; The financial report of the previous year approved by the financial department or accounting (auditing) firm and the financial report of the previous period of the loan application; The correction of the original unreasonably occupied loan; Mortgage 2. List of pledged materials and proof of consent of the person with disposition authority for the mortgage, pledge and relevant proof of the guarantor's intention to agree to the guarantee; project proposal and feasibility report; other relevant information that the bank deems necessary to provide.

2. Credit rating evaluation. The bank evaluates the borrower's credit rating.

3. Loan investigation. The bank investigates the legality, security and profitability of the borrower.

4. Loan approval. Banks approve loan approvals in accordance with a loan management system that separates loan approvals and grades.

5. Sign the contract. The bank signs a loan contract with the borrower.

6. Loan disbursement. Banks issue loans on schedule according to the loan contract.

7. Check after loan. The bank conducts follow-up investigations and inspections on the borrower's implementation of the loan contract and the borrower's operation.

8. Loan repayment. When the loan expires, the borrower shall return the principal and interest of the loan in full and on time. If the loan is to be renewed, an application for renewal of the loan shall be submitted to the bank before the maturity date of the loan.