The essential differences between the two are: 1. The essence of credit: Credit refers to the bank's direct provision of financial support to customers, or the act of guaranteeing the customer's credit in relevant economic activities to a third party. 2. The essence of loan: refers to a form of credit activity in which banks or other financial institutions lend monetary funds according to certain interest rates and must be returned.

1. Credit refers to the funds directly provided by commercial banks to non-financial institutional customers, or the guarantee made by customers for compensation and payment responsibilities that may arise in relevant economic activities, including loans, trade financing, On-balance sheet businesses such as bill financing, financial leasing, overdrafts, and various advances, as well as bill acceptance, issuance of letters of credit, letters of guarantee, standby letters of credit, letter of credit confirmations, bond issuance guarantees, loan guarantees, and assets with recourse Off-balance sheet operations such as sales and unused irrevocable loan commitments. Simply put, credit refers to the act of a bank directly providing financial support to a customer or guaranteeing a customer's credit in relevant economic activities to a third party. Credit is divided into short-term credit and medium- and long-term credit according to the term. Short-term credit refers to credit within one year (including one year), and medium- and long-term credit refers to credit for more than one year.

2. Commercial bank credit is divided into two types: basic credit and special credit. Basic credit refers to the credit limit determined by commercial banks based on national credit policies and the basic conditions of each region and customer. Special credit refers to the credit granted by commercial banks to special financing projects and exceeding the basic credit limit based on national policies, changes in market conditions and special needs of customers. Credit extension from a commercial bank shall require a written credit letter. The authorizer and the attorney should sign and seal the authorization letter. The credit letter of a commercial bank shall be submitted to the People's Bank of China for filing at the same level of jurisdiction. Credit letters involving foreign exchange business should be reported to the bureau with the same jurisdiction as the Administration of Foreign Exchange for record, and sub-authorization should also be reported to the head office of the commercial bank for record. When commercial banking functional departments and branches at all levels sign business contracts with customers, they must present credit letters to them, and both parties should sign the contract within the credit scope stipulated in the credit letter.

3. Credit decisions of commercial banks should be made within the scope of written authorization, and credit should not be granted beyond the authority. Commercial banks' credit decision-making should be based on prescribed procedures, and credit should not be granted in violation of the procedures or by reducing the procedures. In the credit decision-making process, commercial banks should strictly require credit staff to follow the principles of objectivity and impartiality, express decision-making opinions independently, and not be interfered by any external factors. Commercial banks are not allowed to grant credit to the following businesses: 1. Products or projects expressly prohibited by the state; 2. Violating relevant state regulations to engage in equity investment, using credit as registered capital, registered capital verification and capital increase and share expansion; 3. Violating the Engage in investments in stocks, futures, financial derivatives, etc. according to relevant national regulations; 4. Other projects that violate national laws, regulations and policies. If the customer fails to obtain one of the following valid approval documents in accordance with national regulations, or if the customer obtains one of the following valid approval documents, or if it is broken into parts, ultra vires or disguised ultra vires and super authorized approval, commercial banks shall not provide credit: 1. Project approval documents; 2. Environmental protection Approval documents; 3. Land approval documents; 4. Other approval documents required according to national regulations. If the credit conditions change after a commercial bank makes a credit decision, the commercial bank shall make a new decision or change the credit in accordance with relevant laws, regulations or corresponding contract terms. When implementing conditional credit, commercial banks should follow the principle of "implement the conditions first, then implement the credit". If the credit conditions are not implemented or the conditions are changed and the decision is not made again, the credit shall not be granted. Commercial banks should prepare corresponding legal documents for the proposed credit extension and review the legal compliance of the legal documents. For tips on the main terms of legal documents, please refer to the "Notes on the main terms of the format contract text" in the "Appendix". When commercial banks grant credit, they should pay attention to the legality of the loan contract. The credit staff who are authorized to sign the loan contract should review the loan contract item by item before signing, and ensure that the customer's exact legal name, the authorization document of the person authorized to sign on behalf of the customer, the identity of the signer, and the legal credit legal document signed Confirm the sex.