What is a subsidized loan?

There are three differences between loans and subsidized loans:

1. The meanings of the two are different:

1. The meaning of loan: a loan is a loan from a bank or other financial institution A form of credit activity in which institutions lend monetary funds at a certain interest rate and must be returned. Loans in a broad sense refer to the general term for lending funds such as loans, discounts, and overdrafts.

2. The meaning of subsidized loans: Subsidized loans refer to a special bank loan that is used for designated purposes and whose interest payments are subsidized by the state or banks.

2. The functions of the two are different:

1. The role of loans: Banks invest the concentrated currency and monetary funds through loans, which can meet the needs of society for expanding reproduction. To supplement the needs of funds and promote economic development, at the same time, banks can also obtain loan interest income and increase the bank's own accumulation.

2. The role of discounted loans: Subsidized loans are preferential loans to encourage the construction of certain undertakings or projects. Loan interest can be fully subsidized or partially subsidized. As for the interest spread of loans, the principle of subsidizing is generally applied to those who arrange it. The discounted loans arranged by the state are subsidized by the central government; the low-interest loans agreed to be issued by the People's Bank of China are subsidized by the People's Bank of China; the low-interest loans of various specialized banks are subsidized by the specialized banks themselves.

3. The application procedures for the two are different:

1. Loan application procedure:

(1) Acceptance. The handling staff introduces to customers the application conditions, term, interest rate, guarantee, repayment method, handling procedures, default handling and various expenses that need to be borne by the borrower, etc. Qualifications and application materials will be reviewed initially.

(2) Investigation. In accordance with relevant regulations, investigators use reasonable means to investigate the authenticity of the materials submitted by customers and evaluate the applicant's ability and willingness to repay. ?

(3) Approval. The authorized approver will ultimately determine the customer's comprehensive credit limit and the credit limit validity period based on the customer's credit rating, mortgage situation, pledge situation and guarantee situation. ?

(4) Distribution. After fulfilling the loan conditions. Customers can apply for a credit limit from the bank at any time based on their loan needs.

(5) Post-loan management. The lending bank shall supervise and inspect the income status of the borrower and the guarantor, the use of the loan, the changes in the value and performance of the collateral (pledge), etc. in accordance with the relevant regulations on loan management. The inspection results must be recorded in writing and archived. Those who implement guarantee or credit methods should supervise the credit and repayment ability of the guarantor or borrower, and require the borrower and guarantor to provide assistance.

(6) Loan recovery. The lending bank deducts the money from the agreed repayment account based on the repayment plan and repayment date agreed upon by both parties in the contract. Borrowers can also go to the lending bank's business outlets to repay the loan.

2. Application process for subsidized loans:

(1) Voluntary application. Qualified applicants should submit a written application to the grassroots employment platform where their household registration or business is located (some may directly apply to the local human resources and social security department or small loan guarantee agency), and submit relevant materials, certificates or relevant certificates.

(2) Review recommendations. The human resources and social security departments will conduct a qualification review, and those who pass the review will be recommended to small loan guarantee institutions. Guarantee institutions refer to guarantee institutions entrusted to operate small loan guarantee funds in accordance with relevant regulations.

(3) Commitment guarantee. The guarantee agency will review the applicants' projects in accordance with relevant regulations and handle the commitment guarantee procedures for those who meet the conditions.

(4) Grant loans. For loan applicants that the guarantee agency promises to guarantee, the handling bank will sign a contract and issue the loan after approval in accordance with relevant regulations. Handling banks refer to various types of financial institutions at all levels that sign cooperation agreements with small loan guarantee institutions to carry out small guaranteed loan business.

Baidu Encyclopedia-Loan

Baidu Encyclopedia-Discounted Loan