What Is Loan Rehabilitation?

The interest rate increase on loans is the interest charged by banks on loans that have been taken up by companies in violation of the credit system. The purpose is to use the interest lever to promote enterprises to strengthen economic accounting, improve business management, strict financial and brokerage laws, rational use of funds, and improve the use of credit funds. The People's Bank of China began to add interest to overdue loans in 1951, and ceased implementation in 1972, and resumed implementation in 1980. ^[1]