1. If the lending institution charges the borrower a service fee at the initial stage of loan issuance, which does not comply with the relevant regulations, there may be fraud.
2. It is legal for the lending institution to recover the loan together with interest and arrears after issuing the loan. The loan service fee generally refers to the service fee charged during the loan process. If you apply for a loan in a bank, there is generally no service charge. However, if you borrow money from a third-party platform, you usually need to charge a service fee. Before applying for a loan, I suggest you consult the platform first.
Procedures for applying for loans:
1. When applying for a loan, basic information such as loan purpose, loan amount, personal property (enterprise: company operation status), service life, selected loan type, collateral, repayment ability, etc. Should be explained.
2. loan investigation after receiving the application, the commercial bank will start a basic investigation of your loan situation. The principle here is to evaluate the loan risk according to your willingness and ability to repay. And whether the financing industry involved meets the national requirements.
3. recognition. After a comprehensive investigation of the loan, when the bank has enough funds, it can sign a contract (guarantee, mortgage), go through the loan-related procedures, and obtain funds after approval by the corresponding bank management department. Please consult the staff for details.
4. Post-loan investigation: after the borrower obtains the loan, it mainly investigates the use of funds in accordance with the prescribed purposes, the borrower's cash flow and operating income. If the loan is not used for the specified purpose (when the borrower signs the contract), the bank has the right to terminate the loan in advance or raise the loan interest rate, which is called "misappropriation of public funds".
5. The borrower repays the loan within the specified date without penalty interest. If the loan is repaid after the loan date, the loan interest will generally rise by 50%. After the signing of this contract, the borrower shall settle interest on a monthly, quarterly, annual or phased basis. Under normal circumstances, the basic process of loan will end. In particular, if there is no regular repayment, the bank will generally sue and apply for legal compensation within 30-60 days, and the borrower will bear all the expenses incurred in the process of liquidation and asset preservation.