Hello, we are talking today about the use of the loan funds. Some might think that if the loan was disbursed on time, the funds could be used anywhere. However, this is not the case. If you don't notice, your loan application may be rejected. So where can loan funds not go? What are the penalties for unlawful use

What aspects of the loan could not be used? What are the consequences of irregular use

First, borrowers must never use their loans for illicit activities such as yellow gambling. Once these areas are covered, the recovery of loan funds becomes very difficult. If the relevant agencies learn that you have such a record, you are likely to be denied a loan。

Second, borrowers cannot use their loans to finance investments, such as the purchase of stocks, funds, futures, precious metals, etc. Because of the high risk in the investment industry, if you do not have sufficient funds on your own, the risk of investing through borrowing is excessive. Once a problem arises, not only may you fail, but lending institutions also have to take the risk of bad debts。

In addition, borrowers could not re-lent low-interest loan funds at high interest rates, a practice which was prohibited by the State from making money through interest differentials. Such an act harms both the interests of the lending institution and the fact that the lending itself is illegal because the lending individual or organization lacks the appropriate qualifications。

Finally, personal consumption loans can be used only in the areas of daily consumption, such as car purchases, renovations, tourism, shopping, etc. Such loans cannot be used for the purchase of housing or for the production of businesses。

Once the lending institution finds out that the borrower ' s funds are being used in an irregular manner, they withdraw the loan and require the borrower to pay back in advance and be blacklisted. Borrowers may face criminal penalties if the irregularities are serious and the amounts involved are so large that the loan funds cannot be recovered。

In general, borrowers are required to earmark loan funds for specified purposes and, in the use of personal consumption loans, remember to maintain the relevant invoices, purchase orders, receipts, etc., in order for the lending institution to require acceptance。