As science and technology and the Internet continue to develop, people ' s patterns of consumption and financial management have changed dramatically. Of these, borrowing and reserve funds are increasingly favoured as two consumer credit products. However, many people do not fully understand borrowing and imprest and often confuse the similarities and differences between the two, especially as to whether borrowing and imprest go hand in hand. Indeed, borrowing is different from the reserve, and this is analysed from different angles below。

Is borrowing with the reserve

I. CONTEXT OF CONTEXT

LOANS AND RESERVES, WHILE BOTH ARE SHORT-TERM CONSUMER LOANS, DIFFER IN CONCEPT AND USE. THE LOAN IS SIMPLY A REGULAR CONSUMER CREDIT SERVICE THAT IS OFFERED TO PAY FOR TREASURES, I.E., THE USER CAN BORROW MONEY AT ANY TIME, WITHIN THE LIMITS OF THE LOAN, DEPENDING ON THE NEED, FOR PERIODS RANGING FROM 1 TO 12 MONTHS, AT AN INTEREST RATE OF APPROXIMATELY 5 PER 10,000 PER DAY. THE IMPREST IS AN OVERDRAFTABLE CREDIT CARD BALANCE ISSUED BY THE BANK, WHICH IS USUALLY REQUESTED BY FILLING IN THE IMPREST APPLICATION FORM AND, WHEN SUCCESSFUL, THE IMPREST IS AUTOMATICALLY DEDUCTED FROM THE CREDIT LINE ATTACHED TO THE BANK CARD AND NO ADDITIONAL BORROWING IS REQUIRED, AND INTEREST IS GENERALLY IN THE ORDER OF 7%-18%。

II. Differing application modalities

The loan usually requires the user to open and authorize the payment of the treasure, which, according to a credit assessment, gives a loanable value and the user can apply for the loan at any time in the account. However, the imprest usually requires an offline or offline application from the bank, as well as personal credit reviews and asset clearances, which are then awarded to the user。

III. Different interest rates

THE INTEREST RATE FOR BORROWING AND THE RESERVE IS ALSO DIFFERENT. THE AVERAGE INTEREST RATE BORROWED IS AROUND FIVE PER 10,000 PER DAY, AND THE INTEREST IS CALCULATED AT THE DAILY INTEREST RATE IN THE SAME WAY AS THE GENERAL LOAN. THE RESERVE IS USUALLY CALCULATED AT ANNUALIZED INTEREST RATES, WHICH ARE RELATIVELY HIGH, TYPICALLY AT 7% TO 18%。

IV. Differing repayment modalities

There is also a significant difference in the manner in which loans are repaid to the reserve. Refunds are made on the basis of an equivalent principal interest rate, i.e. a certain amount of principal and interest per month that the user repays in accordance with the required repayment period. On the other hand, the reserve is repaid on the basis of a minimum repayment, i.e., the minimum credit card repayment of the user, with the balance being transferred to the next month ' s repayment。

Thus, in the light of the above, while both borrowing and imprest are short-term consumer loans, there are differences in concepts, application modalities, interest rates and repayment modalities. Thus, borrowing with the reserve is not a combination of two separate consumer credit products. In their use, users should choose a loan product that is appropriate to their own circumstances and needs。