Entrusted loan refers to the loan provided by the principal and entrusted by the trustee according to the determination, term and interest rate of the principal. As an entrusted bank, banks can handle entrusted loan business with entrusted funds in RMB and gold. Entrusted loan business must meet foreign requirements.
When children's financial advisers handle entrusted loan business, the trustee shall require them to issue a power of attorney for entrusted loan business.
The entrusted loan business belongs to the intermediary business of the bank. The trustee does not bear any loan risk, but only charges fees, does not advance funds, does not introduce borrowers to customers, and does not accept loans with unclear purposes and no designated borrowers.
Entrusted loan business entities include the guarantor and the guaranteed.
1. The principal refers to people, including government departments, companies, fund companies, investment management companies and natural persons.
2. The trustee refers to the person who has the right to operate the entrusted loan business.
3. The borrower refers to the enterprise, institution, legal person, other economic organization, individual industrial and commercial household or natural person determined by the client to obtain entrusted loans from the trustee.
4. The guarantor is recognized by the client or individual.
Second, what is entrusted loan? What's the difference between it and direct borrowing?
Entrusted loan means that the lender (principal) entrusts the bank (trustee) to lend the funds to the borrower, and the funds are owned by the lender. Banks only serve as a platform to monitor the flow of funds and the collection of principal and interest. If the principal and interest are not repaid on time, the borrower will be registered as the credit record of PBOC.
Direct loan means that the lender pays the funds directly to the borrower, and there is no bank as the capital channel.
3. What is entrusted loan?
Entrusted loan: refers to the loan business in which the funds provided by the principal from legal sources are transferred to the general entrusted account of the entrusting bank, and the entrusting bank issues, supervises the use and assists in the recovery on behalf of the principal according to the loan object, purpose, amount, term and interest rate determined by the principal. Customers can be government departments, enterprises, institutions or individuals. The significance of entrusted loans entrusted loans are actually equivalent to the borrowing of funds between enterprises. However, due to the explicit prohibition in China's General Rules for Loans, it is not allowed to transfer funds between accounts of different legal entities without actual trade background. Therefore, mutual financing between enterprises can only be achieved through entrusted loans. For enterprises with abundant funds, it is obviously unwise to leave a lot of funds idle in accounts and only rely on the interest rate of small bank deposits to obtain income. If this capital is invested, many enterprises will not be willing to carry out investment activities with high returns and high risk factors because each enterprise has a certain risk factor. At the same time, investment will inevitably lead to losses. So how to effectively use such a large amount of idle funds? Entrusted loans just cater to the requirements of surplus enterprises in this regard. Effectively improve the utilization rate of funds within the enterprise. It provides an effective means for enterprises to obtain additional income. Similarly, for banks, entrusted loans are the intermediary business of banks, and banks play the role of matchmaking. By helping enterprises to complete entrusted loans, banks charge certain fees and increase their business income.
4. What's the difference between entrusted loan and capital lending?
Short-term loans, also known as inter-bank lending, have a term of no more than one year. Lenders and borrowers do not need to sign a contract, but only need to borrow on the basis of credibility. Typical interbank lending is an overnight lending market set up to adjust the surplus and deficiency of settlement funds of commercial banks. Short-term loans of banks usually refer to temporary and seasonal loans of enterprises, which can also be called working capital loans.