For individuals who meet the requirements of small secured loans, the general process of applying for loans includes four steps: voluntary application, review and recommendation, commitment to guarantee and loan issuance. Voluntary application. Eligible applicants submit written applications (some of which can be directly submitted to the local human resources and social security departments or microfinance guarantee institutions) to the grassroots employment platform where their household registration is located or where they operate, and submit relevant materials, certificates or relevant certificates. Review recommendations. The human resources and social security departments conduct qualification examination, and those who pass the examination are recommended to microfinance guarantee institutions. A guarantee institution refers to a guarantee institution entrusted to operate a small loan guarantee fund according to relevant regulations. Promise to guarantee. The guarantee institution shall review the applicant's projects in accordance with the relevant provisions, and handle the guarantee procedures for those who meet the conditions. Issue loans. The loan applicant promised by the guarantee institution shall, after being examined and approved by the handling bank in accordance with relevant regulations, sign a contract and issue loans. The handling bank refers to all kinds of financial institutions at all levels that sign cooperation agreements with microfinance guarantee institutions to carry out microfinance business. Discounted loans refer to special bank loans subsidized by the state or banks for specific purposes. It is a preferential loan to encourage the construction of a certain cause or project. The loan interest can be fully subsidized or partially subsidized. Generally speaking, the principle of who arranges and subsidizes the loan spread is implemented. The subsidized loans arranged by the state are subsidized by the central government; Discounted loans issued by the People's Bank of China are subsidized by the People's Bank of China; Specialized banks are responsible for discounting loans.
In addition, if low-income families use provident fund loans to buy affordable housing, they will be given loan interest subsidies, which is equivalent to giving preferential treatment on the basis of low interest, which means that low-income families will pay less interest than before. Beijing has also implemented the discount policy of provident fund, which stipulates that after buyers apply for discount loans, the provident fund management center will subsidize the part where the commercial loan interest rate is higher than the provident fund loan interest rate; The subsidy amount can no longer be higher than the difference between the benchmark interest rate and the provident fund interest rate.
Legal basis: Interim Measures for the Administration of Personal Loans Article 3 Personal loans as mentioned in these Measures refer to local and foreign currency loans granted by lenders to qualified natural persons for personal consumption, production and operation.