1. What are the five-level classification of credit union loans?

The definitions of the five categories of loans are:

Normal: the borrower can fulfill the contract and there is insufficient Reasons to suspect that the loan principal and interest cannot be repaid in full and on time.

Attention: Although the borrower is currently able to repay the principal and interest of the loan, there are some factors that may adversely affect repayment.

Substandard: The borrower has obvious problems with its repayment ability. It is unable to fully repay the principal and interest of the loan solely relying on its normal operating income. Even if the guarantee is executed, certain losses may occur.

Suspicious: The borrower cannot repay the principal and interest of the loan in full, and even if the guarantee is executed, it will definitely cause large losses.

Loss: After taking all possible measures or all necessary legal procedures, the principal and interest still cannot be recovered, or only a very small part can be recovered.

2. What are the five classifications of credit union loans?

The definitions of the five types of loans are: Normal: The borrower can fulfill the contract and there is no sufficient reason to suspect that the principal and interest of the loan cannot be repaid in full and on time. Concern: Although the borrower is currently able to repay the principal and interest on the loan, there are factors that may adversely affect repayment. Substandard: The borrower's repayment ability exceeds normal operating income and cannot repay the principal and interest of the loan in full. Even if the guarantee is executed, it may not be able to repay the principal and interest of the loan in full. Even if the guarantee is executed, it will definitely cause greater losses. Loss: After taking all possible measures or all necessary legal procedures, the principal and interest are still minimal.

What are the three and five levels of classification?

The five levels of loan classification are normal, special mention, substandard, doubtful and loss, of which the latter three are Defined as non-performing loans by banks, this classification standard is based on the borrower's actual repayment ability. The five-level classification method is based on dynamic monitoring, and factors analyzed include the borrower's cash flow, financial strength, collateral value, etc.

The meanings of the five-level loans are as follows:

1. Normal loan: The borrower can fulfill the contract and can repay the principal and interest normally, without any impact on the timely payment of the principal and interest of the loan. Disadvantages of repayment.

2. Pay attention to loans: Although the borrower has the ability to repay the principal and interest of the loan, there are some factors that may adversely affect the repayment. If these factors continue, the borrower's repayment ability will be affected.

3. Subprime loans: There are obvious problems with the borrower's repayment ability. The borrower cannot fully repay the principal and interest of the loan solely relying on its normal operating income. It needs to repay the loan by disposing of assets or external financing or even executing mortgage guarantees. Pay interest. The probability of loan loss is 30%-50%.

4. Doubtful loans: The borrower is unable to repay the principal and interest of the loan in full. Even if the mortgage or guarantee is executed, some losses will definitely be caused, just because of the borrower's restructuring, mergers, consolidations, collateral disposal and unfinished business. The amount of the loss cannot be determined due to certain factors such as the decision of the lawsuit. The probability of loan loss is between 50% and 75%.

5. Loss loan: It means that the borrower has no possibility of repaying the principal and interest. No matter what measures are taken and what procedures are performed, the loan is destined to be lost, or although a very small part can be recovered, its value is also Very little.

4. What is the basis for dividing the five-level loan classification?

One day overdue is not a bad record. According to the five-level loan classification standard, loan forms are divided into normal, special mention, substandard, doubtful and loss. The first two categories are normal loans, and the last three categories are non-performing loans. Obviously, the longer the overdue time, the worse the nature and the worse the form. down. The latest standards require that loans that are overdue for 90 days or more must at least be classified as substandard, that is, turned into non-performing loans.

The bank's loan examiners do not judge a person's credit status entirely based on whether it is overdue, but also conduct a comprehensive analysis based on the length of overdue time, overdue amount, number of overdues, types of overdue loans, etc. The detailed version of the credit report can clearly show the number of days overdue, and the reviewer will know at a glance that this is not a malicious overdue. The same is true for overdue loans. Overdue operating loans are more serious than overdue mortgage loans, and overdue mortgage loans are more serious than overdue credit card loans.

You don’t have to worry about your credit report. You just need to make timely repayments in the future, use cards rationally, avoid rising and falling debt, don’t check your personal credit report frequently, and don’t cash out. Applying for a loan is not a piece of cake.