Is there a risk for the third party payee of the renovation loan?

Article 1 All loans are collected by third parties, some of which are corporate loans and some are private loans. Third-party collection is only used as funds and has nothing to do with the loan itself, so there is no risk for third-party payees.

Legal basis: Interim Measures for the Administration of Personal Loans.

The term "personal loan" mentioned in these measures refers to the domestic and foreign currency loans issued by lenders to qualified natural persons for personal consumption, production, and business.

Article 4 Personal loans shall follow the principles of lawfulness, prudence, equality, voluntariness, fairness, and good faith.

Article 5 The lender shall establish an effective management mechanism for the whole process of personal loans, formulate a loan management system and operating procedures for each type of loan, clarify the corresponding loan objects and scope, implement differentiated risk management, and establish an assessment and accountability mechanism for each operation link of the loan.

Legal analysis: the money of the decoration loan should be paid to the decoration company, not to the lender's account, which is implemented by the bank in accordance with the "three measures and one guideline" of the China Banking and Insurance Regulatory Commission, mainly to prevent the lender from misappropriating loan funds and ensure that the loan funds are executed in accordance with the loan contract, that is, the loan must have a real transaction background. For third parties, we are not responsible for the repayment of the loan, but we must ensure the authenticity of the transaction contract (i.e. the renovation contract).

You have to see which contract you are signing in, whether it is a renovation contract or a guarantee contract. When a friend applies for a renovation loan from a bank, it is a process of guaranteeing the loan, and you become a third-party guarantor in the process. The guarantor is to exercise the legal consequences on behalf of the borrower.

If your friend fails to repay the principal and interest on time when the bank's repayment period comes, the bank will find your guarantor to repay it, and if you don't repay, the bank will conduct legal recovery and credit assessment on you. This means that you are the guarantor, and if your friend can't pay the money, you need to pay it back for you. If your friend doesn't pay back later, there's a good chance that the debt will fall on you because the money has hit your account and you've signed the bank creditor contract.

Legal basis: Article 585 of the Civil Code of the People's Republic of China: The parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach, and may also agree on the method of calculating the amount of compensation for losses arising from the breach.

If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them at the request of the parties; Where the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties. If the parties agree on liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.

Legal analysis: Indeed, there is a certain risk that a third party may transfer the loan of the party in violation of regulations, so that the party cannot use the money for decoration, and when the party pursues the responsibility of the loan company, the loan company may shift the responsibility to the third party and refuse to allocate the funds again; When the parties pursue the third party, they find that the third party is not the subject of the contract, and it is difficult to protect their rights. This is because disbursing a loan to a third party would create a hidden danger for the lender to default.

A renovation loan is a personal consumption loan for home improvement, and both banks and consumer finance consumer companies support the application for this type of loan. The following are the basic application conditions for decoration loans: 1. Have a local permanent residence account, and a non-local account cannot apply for a decoration loan in a local bank.

2. Legal and valid identity certificates, such as second-generation ID cards, passports, etc. 3. Have a proper occupation and stable income, and have a certain ability to repay. 4. Able to provide proof of assets, such as bank statements, social security payments, tax vouchers, etc.

5. Proof of house ownership should be provided for the new residential house sales contract, house purchase invoice, or the redecoration of the original house. 6. Other conditions stipulated by the lending institution. Legal basis:

Article 26 of the Regulations on the Administration of Housing Provident Fund Employees who have paid into the Housing Provident Fund may apply for housing provident fund loans from the Housing Provident Fund Management Center when purchasing, constructing, renovating or overhauling their self-occupied houses. The Housing Provident Fund Management Center shall, within 15 days from the date of acceptance of the application, make a decision to approve the loan or not to approve the loan, and notify the applicant; If the loan is approved, the entrusted bank shall handle the loan formalities. The risk of housing provident fund loan shall be borne by the housing provident fund management center.

Article 27 Where an applicant applies for a housing provident fund loan, he or she shall provide a guarantee. Article 673 of the Civil Code of the People's Republic of China If the borrower fails to use the loan in accordance with the agreed purpose of the loan, the lender may stop disbursing the loan, withdraw the loan in advance, or terminate the contract. Article 674:The borrower shall pay interest within the agreed time limit.

Where there is no agreement on the period for the payment of interest or the agreement is not clear, and it is still uncertain in accordance with the provisions of Article 510 of this Law, and the loan period is less than one year, it shall be paid together when the loan is returned; If the loan period is more than one year, it shall be paid at the end of each year, and if the remaining period is less than one year, it shall be paid together with the return of the loan. Article 676: Where a borrower fails to repay the loan within the agreed time limit, it shall pay overdue interest in accordance with the agreement or the relevant provisions of the State.