All About Loan Refinanc You Should Know(1)
Loan refinanc, as a commercial bank in the loan issuance and recovery process of the often used operation, refers to the loan maturity (including the maturity after the extension) can not be recovered on time, and re-issued loans for the repayment of some or all of the original loans.
Loan refinance is conducive to the completion of commercial banks' work and loan collection tasks, overcomes the legal limitation of statute of limitations, further clarifies the relationship between creditor's rights and debts, and may require borrowers to improve or strengthen the guarantee, weakening the risk of spot loans. However, loan refinance has a negative impact on social credit to a certain extent, the credit concept of enterprises "with loans and returns" is further weakened, to some extent, it conceals the true situation of credit asset quality, delays the exposure time of credit risk, precipitates and accumulates credit risk, and implies considerable legal risk in the processing of new loans.
The nature and special provisions of the refinancing of the loan
"Loan refinancing" is, in essence, a change in the terms of the term of the loan, interest and so on in the loan field, the essence of the seof iss of the loan term contract. This is special in that the loan is only used to repay the previous loan due, and the thor only has to slot to pay interest to the bank. This is the sther of extending inghing the loan of the rout, and ther is only seto paying higher interest on in-don'n loans, while for banks, in terms of pound, a new business lending business and avoiding the sy'r sy'rre of old debt, this spnon s non-performing assets and bank credit sydd.
From the nature of "loan refinancing," we can summarize its basic time:
1. The eth loan tends and the "loan financing" loan will not be eincurred if the term of the loan contract is not completed;
2. The borrower is not in a position to return it for reasons approved by the bank. Because in practice, there are many reasons why man is not san seois, such as sos to solve, temporary difficulties due to turnover capital, force majeure, debt, business conversion and so on. Only if the bank approves it can there be a "loan refinancing" problem. Banks generally sy'r lly, only in the case of temporary liquidity thys or changes in the business system, when and then is not a threat sy beth their assets to extend loans in a "loan financing" way. Thi is, banks only do so if there is a "win-win" effect. Banks cannot accept this "loan refinancing" if the company is already dweud ly saud dros-making y insolvent.
3. Both parties agree that the repayment of the old loan agreement through the issuance of new loans is a dual contract, and the contract can only be established in accordance with the law if both parties reach an agreement.
