What Are the Pros and Cons of Family Loans?

Unsecured personal loans are business-type loans with individuals or families as the core. Their main service targets are the majority of industrial and commercial self-employed individuals, small workshops, and small owners. The amount of the loan is generally less than 100,000 yuan and more than 1,000 yuan.

Unsecured personal loan

Unsecured loans, also known as unsecured loans, or credit loans. No collateral is required, only the identity certificate, income certificate, address proof and other materials (the specific proof materials depend on the bank). The loan is applied to the bank. The bank issues the loan based on the personal credit situation, and the interest rate is generally slightly higher. For secured loans, customers can choose the length of the loan according to the specific circumstances of the individual, and then sign a contract with the bank, which is guaranteed.

In addition, there are some credit platforms. They are similar to intermediaries. They hold the lender of funds in one hand and the borrower in the other to assist in the review of intermediate materials and the signing of contracts. At present, the domestic banks that have unsecured loan products include Citibank, Standard Chartered Bank, Ping An Bank, Bank of Ningbo, etc. Credit platforms include CreditEase and Zhongan Credit. Unsecured loans (credit loans) have not been developed in the country for a long time, and there is generally more demand in the south, and acceptance in the north is not high. With the continuous promotion of credit cards, some state-owned banks and commercial banks will gradually launch similar products.

At present, the unsecured loans officially promoted in China are the unsecured loans from Standard Chartered Bank, which can be used for loans ranging from 8,000 to 20,000 yuan.

CreditEase's unsecured credit loan has an amount of about 2-30 million and an interest rate of 1.5% -3%.

Since 2004, to make up for

From the current reality,

1. Provide personal identification, which can be ID card, residence permit, residence booklet, marriage certificate and other information;

2. Provide stable proof of address,

1. Signing the subscription: The client signs the contract with a real estate development company that has signed a contract with the bank

(1) The term of unsecured personal short-term credit loans is less than one year (inclusive).

(2) The interest rate of unsecured personal short-term credit loans shall be implemented in accordance with the short-term loan interest rate stipulated by the People's Bank of China, and the floating rate shall be implemented in accordance with the relevant regulations of the People's Bank of China. When the interest rate is adjusted during the loan period, the contract interest rate will be implemented, and the interest will not be calculated by segments. If the loan term is less than 6 months, interest will be calculated at the 6-month grade rate.

(3) The starting point of an unsecured personal short-term credit loan is 2,000 yuan, and the loan amount does not exceed 6 times the monthly salary income of the borrower, and the maximum is not more than 20,000 yuan.

(4) Unsecured personal short-term credit loans are generally not renewed. If it is truly impossible to repay the loan due to force majeure or accidents, it can be renewed once with the consent of the lender, and the cumulative loan period shall not exceed one year. The interest before the rollover is paid at the interest rate agreed in the original contract. Interest after the renewal, if the accumulated loan term is less than 6 months, the interest rate will be calculated based on the 6-month loan interest rate listed on the date of the renewal date: if it exceeds 6 months, the 1-year loan interest rate will be listed on the date Interest rate.

At present, a lot of advertisements about personal unsecured loans have appeared on the Internet and in the newspaper media. The main bodies are some scary loan groups that have been established for many years. The shareholders have a prominent background and have successfully loaned ×× 100 million yuan. All major and medium cities in the country have branches, you only need simple information such as ID cards, and you can get a fast loan after the company's preliminary review. The interest is really attractive 1-3 points (1% -3%), etc. Wait.

This type of information is fraudulent, and its operating model and charges are obviously unreasonable, as follows:

The company's name is relatively scary. The so-called "xx loan group", etc., even some also provide copies of business licenses, the traces of fraud are obvious;

Generally only provide mobile phone number, contact person and QQ, no fixed phone, no office address;

Generally, it is stated that the company has branches in major cities in the country, and it can handle business conveniently everywhere.

Lending conditions are very loose and the procedures are simple. You only need to provide basic information and no mortgage is required.

Interest rates are so low that the monthly interest rate is only 1% -3%;

Most websites still have a solemn statement at the end: remind everyone to pay attention to fraud prevention, typical thieves shout and catch thieves.

When the borrower contacts, the scammers will find various reasons to ask for the upfront fee (such as prepaid interest);

When the borrower paid, he found that the scammers could no longer be contacted.

In fact, the so-called unsecured private lending model is simply impossible to operate in this way:

The so-called "xx loan group" is actually impossible to register with the industrial and commercial department, even if the copy of the business license provided is counterfeit;

(1) Personal credit history, especially the credit history of the applicant in his bank account, to see if there has been any overdraft, chargeback and other bad behavior.

(2) Personal debt ratio. In general, banks will only consider providing unsecured loans to applicants if the burden of debt and interest payments does not exceed 25% of their annual income after tax.

(3) Individual employment record. The general standard held by banks is that applicants should have a stable job and be able to obtain a reliable income before they are able to return the loan.

(4) Maximum loan amount. The determination of the upper limit of the loan amount mainly depends on the applicant's basic income level, debt level and loan term, and then a comprehensive assessment is made. The general standard is that unsecured personal loans should not exceed 1.5 times the applicant's monthly basic income.

(5) Loan term. For loans for travel and personal income tax purposes, the loan period provided by the bank is generally within one year. For loans for other purposes, the bank's loan term usually does not exceed two years.

(6) Loan pricing. For such loans, banks generally tend to provide loans at preferential interest rates. Because individuals who can obtain unsecured loans through bank audits are all low-risk bank customers and should get better interest rates.

(7) Personal insurance. Although unsecured personal loans do not require the borrower to provide collateral, the bank still needs to consider how to recover the loan if the borrower has an accident such as death, disability, etc. The most common way is to know if the borrower has personal insurance and whether the sum insured is sufficient. If not, the bank sells life and disability insurance to the borrower.

1. Loan object: Chinese citizens who have reached the age of 18 and have full capacity for civil conduct, and the sum of the age of the borrower and the term of the loan does not exceed 60;

2. Loan limit: the minimum limit is 100,000 yuan, and the maximum credit line is 5 million yuan.

3. Loan term: The term of the loan is generally 1 year (inclusive), and the maximum validity period of the loan is no more than 5 years;

4. Loan interest rate: In accordance with the loan interest rate regulations of China Construction Bank;

5. Guarantee method: The guarantee takes the form of mortgage, pledge and guarantee, but it does not accept the guarantee provided solely by third-party guarantee.

6. Repayment method: If the loan term is within one year, the method of monthly repayment of interest can be arbitrarily repaid, the principal and interest repayment method, the principal repayment method, and the one-time principal and interest repayment method. If the term of the loan is more than one year, the equal principal and interest and equal principal repayment methods may be adopted. The specific repayment method shall be negotiated between the handling bank and the borrower and agreed in the loan contract.

Judging from the existence of unsecured property, unsecured loans do not need to be mortgaged in kind. Mortgage loans require mortgaged real estate, and require that the real estate is purchased in full or the loan is settled;

In terms of loan amount, unsecured loans can generally be loaned to 10-15 times the proof of flow, the highest is generally 300,000 to 400,000, and the amount of mortgage loans is generally 70% of the appraised value of the mortgaged property, up to tens of millions. The advantages of mortgage loans are obvious;

In terms of loan interest rates, the interest rate for unsecured loans is generally 7.9% -9.9%, and the interest rate for mortgage loans is generally 5.94%, which is lower than unsecured loans;

In terms of loan life, unsecured loans can be loaned up to 4 years, mortgage loans can be loaned up to 20 years, and the mortgage loan wins;

From the perspective of the loan time, after the unsecured loan review is successful, the loan can be released on the same day. The mortgage loan generally takes 10 working days, and the unsecured loan wins;

Judging from the strictness of the borrower's review, because there is no collateral for unsecured loans, the qualification of the borrower is very strict. Compared with unsecured loans, the mortgage loan is slightly looser than the unsecured loan;

From the point of view of the need for a use certificate, unsecured loans do not require the borrower to provide a use certificate, and the mortgage loan requires the borrower to provide a use certificate, and only the bank can provide housing, car purchase, study abroad, decoration and other certifications. Mortgage funds are more widely used;

From the perspective of operable banks, unsecured loans can only be operated by individual foreign banks and domestic banks, while mortgage loans are relatively common, and both domestic and foreign banks can operate.