Now there are more and more types of loans. Credit loan and secured loan, as the two most common loan methods, are also the preferred loan channels for borrowers. So what is the direct difference between them?
Credit loan refers to the loan issued by the borrower's reputation, and the borrower does not need to provide guarantee.
A secured loan refers to a loan provided by the borrower or a third party according to law. Secured loans include mortgage loans, mortgage loans.
1. Different loan interest rates
Because secured loans have collateral or a third-party guarantor, the loan risk is relatively small, and the corresponding loan interest rate will be relatively low, while credit loans have no guarantor and collateral, and the loan risk is much greater, so the loan interest rate will be higher.
2. The loan term is different.
If the applicant applies for a secured loan with collateral, the loan term can be up to 20 years, but the credit loan term is usually very short, some of them are only a few months, the longer one is usually around 1 year, and the longest one is 5 years.
3. The loan amount is different
The loan amount of the secured loan is linked to the value of your collateral or the personal economic situation of the guarantor. If the borrower has a mortgage, the repayment amount can reach about 70% of the market value of the house, but the amount of the loan is linked to the applicant's personal monthly income, which is generally 5 to 10 times of the monthly income.
4. Different loan interest rates
Due to the existence of collateral or guarantor, the procedures in the process of answering secured loans are complicated, and the natural lending time is long, while the procedures for credit loans are relatively simple. After the borrower meets the loan conditions, it usually takes about a week to lend money.
Loans can be classified according to whether there is guarantee or not.
Loans can be divided into credit loans and secured loans according to whether they are secured or not. Bank loans in China can be divided into: first, credit loans. Credit loan refers to a loan issued by a bank or other financial institution based on the borrower's reputation. This kind of loan is unsecured and the risk is borne by banks or financial institutions. Second, secured loans. Secured loans include three forms: mortgage loans, mortgage loans and.
Which is better, a credit loan or a secured loan? Only when you understand can you choose!
Whether you apply for loans from banks or private lending institutions, you can simply divide them into credit loans and secured loans according to collateral. According to Article 9 of the General Principles of Loans, loans can be divided into credit loans, secured loans and discounted bills, which is better, depending on the situation.
1, credit loan
This is what we have the most contact with, because most people are only temporarily short of money and don't often need tens of millions of loans. This kind of credit loan just meets the needs of this kind of people, with low quota, low application threshold, fast payment, no mortgage guarantee and relying on personal credit to apply for loans.
Main reference: personal credit information.
For example, if the borrower is a bank loan user, it is easy for the bank to refuse when approving the credit loan.
2. Guaranteed loan
Guaranteed loans include guaranteed loans and mortgage loans. Up to now, most people can't tell the difference between them. Let's briefly describe it below.
Guarantee: The key point is that the third party promises that if the borrower can't repay the money, he will be responsible for repaying the money himself (assuming general guarantee liability or joint liability).
Mortgage loan: the property under the mortgage name, including houses, machinery, cars, land use rights, etc.
Movable property or rights as pledge, such as bills, transferable shares and stocks, patents and property rights, etc.
As can be seen from the above introduction, credit loan is much simpler and a very popular way of borrowing. Many young people can get loans by downloading the mobile loan APP or Alipay or WeChat and providing simple personal information. The requirements for credit reporting are very high. If your credit information is not good, you can choose mortgage loan, but the process is complicated and you can choose freely according to your own situation.
What's the difference between a credit loan and a secured loan?
Generally speaking, ordinary people tend to apply for more credit loans, especially young people nowadays. They prefer credit loans, corporate loans and mortgage loans, but they don't have enough collateral, so they can apply for secured loans.
Credit loan refers to the loan issued by the borrower's reputation, and the borrower does not need to provide guarantee.
Its characteristic is that the debtor can get a loan only by his own reputation without providing collateral or third-party guarantee, and the borrower's credit degree is used as repayment guarantee. For a long time, this kind of credit loan has been the main loan method for banks in China. Because this kind of loan is risky, it is generally necessary to conduct a detailed investigation on the borrower's economic benefits, management level and development prospects in order to reduce the risk.
A secured loan refers to a loan provided by the borrower or a third party according to law. Secured loans include mortgage loans, mortgage loans.
Secured loan means that when the borrower fails to provide the mortgaged (pledged) property in full, the third party recognized by the lender shall provide joint liability guarantee. If the guarantor is a legal person, he must have the ability to repay all the principal and interest of the loan on his behalf and open a deposit account in a bank. If the guarantor is a natural person, he must have a fixed source of income, have sufficient compensation ability and have a certain deposit in the loan bank; The guarantor and the creditor shall conclude a guarantee contract in writing. If the guarantor is changed, the formalities for changing the guarantor must be handled in accordance with the regulations. Without the approval of the lender, the original guarantee contract shall not be revoked.
A secured loan is a loan in which the borrower's property or the property of a third party is used as the loan guarantee according to the loan contract or the borrower's agreement, and the third party is jointly and severally liable for repayment when necessary.
Loan method
The loan method is the way for banks to issue loans to enterprises. According to the different ways of loan guarantee, it can be divided into credit loan, secured loan and bill discount. Credit loan refers to the loan issued only by the borrower's reputation; Secured loans refer to secured loans, mortgage loans and mortgage loans; Bill discount refers to the loan issued by the lender in the form of purchasing the borrower's unexpired commercial paper, which can be regarded as a special form.
The supply of credit funds in China can be divided into three ways, namely, direct lending, indirect lending and trading loans.
Direct loan method
In the course of operation, banks need to issue loans directly to reasonable funds, which is the direct loan method. This loan method has the following three characteristics:
First: loans are used for payment in spot transactions.
Second, the loan supply changes with the inventory of enterprise materials and commodities, which is manifested in the increase of inventory, the direct increase of loans, the decrease of inventory and the direct decrease of loans.
Third: Banks provide loans directly to local property buyers.
Most bank loans in China are provided in this way. Such as industrial and commercial enterprise production, commodity turnover loans, short-term and medium-term equipment loans, etc.
Indirect loan method
It is an indirect way for banks to lend money to enterprises through bill discount.
The paper here refers to commercial paper. Commercial paper is a kind of written debt certificate with a certain format, which is held by creditors who sell goods with commercial credit to guarantee their creditor's rights. It stipulates a certain amount, and the holder can unconditionally ask the drawer or acceptor (to confirm payment) to pay when it expires.
Commercial paper can be divided into commercial promissory notes and bills of exchange. Commercial promissory note is a payment promise issued by the debtor to the creditor (drawer) to pay the money within a certain period of time. A commercial bill is a payment order issued by the creditor (drawer) to the debtor (acceptor) to pay the holder within a certain period of time. Discounting commercial bills means that an enterprise sells its unexpired promissory notes or bills to a bank in urgent need of funds, and the bank deducts the interest from the bill discount date to the maturity date from the bill denomination (principal and interest), and pays the balance to the enterprise in cash. When the bill expires, the bank will collect money from the drawer or acceptor (the purchasing enterprise) according to the bill.
Obviously, in this financing behavior, on the surface, it is the bank that finances the holder, but in fact it is the bank that finances the drawer or acceptor. Therefore, this financing method is an indirect lending method based on direct financing (referring to the direct financing behavior between enterprises).
Indirect lending by banks through bill business is conducive to the commercialization of commercial credit, thus bringing commercial credit into the track of bank credit. The development of discount and rediscount business is conducive to the fund adjustment and macro-control among regions, banks, central banks and specialized banks, and is also conducive to the formation, development and perfection of financial markets.
Seller-buyer credit
Seller's credit and buyer's credit are two internationally accepted export credit methods. In order to support and expand exports and strengthen international competition, many countries in the world encourage their banks to open export credit business to meet the financial needs of foreign importers to pay for goods. Among them, the loan provided by domestic banks to domestic exporters (sellers) is called seller's credit, and the loan provided by domestic banks to foreign importers (buyers) or importing banks is called buyer's credit.
China applies seller's credit and buyer's credit, which are commonly used in international trade, to domestic bank credit activities. Among them, seller's credit is the main way.
Domestic seller's credit is a kind of credit method in which the seller sells goods on credit, the buyer pays in installments and the bank provides loans to the seller. After the buyer pays off the payment in installments, the seller returns the bank loan. The characteristics of seller's credit are as follows: in order to support local enterprises to develop production and expand the sales market, banks lend to seller's units within their jurisdiction; Loan issuance and recovery are based on the order contract between the buyer and the seller; Commercial credit of credit sale and installment payment between enterprises is included in bank credit.
The significance of banks using seller's credit to supply funds lies in:
First of all, the coordination of bank credit and commercial credit is conducive to financial macro-control and micro-invigorating:
Second, it is conducive to giving full play to local production advantages, expanding sales, and developing and forming a unified domestic market.
Third, the seller produces according to the requirements of the order, ensuring the realization of the product value and avoiding the backlog. The buyer obtains the required equipment or products on time, and then repays them in installments after obtaining the proceeds, so that the connection between production and sales is beneficial to both buyers and sellers.
Fourth, it is conducive to promoting the horizontal adjustment of funds and promoting the horizontal connection of the national economy.