Have you ever met someone who needed a loan? Whether you are an individual or a trader, borrowing can be viable. In general, however, individual borrowing is used mainly for day-to-day costs and consumption, while enterprise borrowing is used to meet the business needs of the company. How do we distinguish between personal and unit borrowing? Although the two appear to be similar, in practice there are significant differences between them。

How to distinguish between individual and unit borrowing

First of all, we are looking at different conditions of application. The conditions for applying for a unit loan are relatively strict and, in general, the lending institution will look at the company's business licence, business performance, outlook, and business credit, to determine whether to borrow from the company on the basis of such information. By comparison, the threshold for individual borrowing is quite low, and as long as borrowers are able to produce valuable collateral or have a good credit record and a stable income stream, they may successfully apply for borrowing。

Then, the use of borrowing is an important basis for us to distinguish between these two types of borrowing. Corporate borrowing is generally used for profitable behaviour or temporary cash flow requirements. Individual borrowing, on the other hand, is used more widely and may be used for commercial activities or to meet the consumption needs of individuals, such as buying houses, buying cars, etc。

Finally, the subject of liability for repayment of borrowing is also the determining factor. If the company cannot be repaid for borrowing, the corporate legal person will have to bear the corresponding legal liability. If individuals cannot be repaid, then the borrowers ' credibility will be compromised and their collateral may be auctioned。

IN ADDITION, WHEN IT COMES TO LOANS, WE MUST COVER THE ISSUE OF LOAN RATES. AS A RULE, THE INTEREST RATE ON THE LOAN OF 24% IS CONSIDERED NORMAL. THE LAW DOES NOT PROVIDE ANY PROTECTION IF THE INTEREST RATE ON THE LOAN EXCEEDS 361 TP3T. IF YOUR INTEREST RATE ON THE LOAN IS BETWEEN 24% AND 36%, THIS PORTION OF INTEREST WILL NOT BE PROVIDED FOR BY LAW; AND IF MORE THAN 36% HAS BEEN REPAID, IT MAY BE RETURNED BY APPLICATION IN COURT。

I hope this article will help you to better understand the differences between individual and unit borrowings. For you who need a loan, understanding this information can help you make more informed decisions。