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LOANS & ADVANCE (CREDIT

)
NCC BANK
LOANS AND ADVANCES One of the two primary functions of a commercial bank is to extend credit to the deficit economic unit that comprises borrowers of all types. Bank credit is a catalyst of economic development. Without adequate finance, there can be no growth in the economy. Bank lending is important for the economy in the sense that it can simultaneously finance all of the sub-sectors of financial arena, which comprises agricultural, commercial and industrial activities of a nation. Therefore, a bank is supposed to distribute its loan able fund among economic agent-in-deficit. in a manner that it will generate sufficient income for it and at the same time benefit the borrower to Overcome his/her deficit. The word “credit” is derived from the Latin word “credo” meaning , ‘I believe’. In general, credit means granting of a period of time by a creditor to a debtor at the expiration of which the latter must pay the debt. Moreover, it can be defined broadly or narrowly. Broadly speaking, credit is the finance made available by one party (lender, seller, shareholder owner) to another (borrower, buyer' corporate or non-corporate firm). The former may be a pure lender (a financial institution or a private money-lender), a seller supplying goods against the buyer, promise of future payment, or a shareholder/ owner of a corporate/non-corporate making funds available to the firm viewed as a separate entity. More specifically, the term credit is used narrowly for only debt finance, To define in this way,- credit is simply the opposite of debt. It is a stock-flow variable and should be carefully distinguished from money. Nowadays credit is provided by a wide variety of Sources. This is the survival unit of the bank because until and unless the success of this department is attained, the survival is a question to every bank. If this section does not properly work the bank it may become bankrupt. This is important because this is the earning unit of the bank. Banks are accepting deposits from the depositors in condition of providing profit to them as well as safe keeping their interest. Now the question may gradually arise how the bank will provide profit to the clients and the simple answer is – Loans & Advance. 4.4.1 PROCESS OF LOAN

Table- 07 Heads Application Characteristics Applicant applies for the loan in the prescribed form of the bank describing the types and purpose of loan. 1. Collecting credit information about the applicant to determine the credit worthiness of the borrower. Sources of information 2. Personal Investigation, Confidential Report from other bank, Head Office/Branch/Chamber of Commerce. 3. CIB (Central Information Bureau) report from Central Bank. i. Evaluation of compliance with its lending policy. ii. Evaluating the proposed security. 4. LRA is must for the loan exceeding one crore – as ordered by Bangladesh Bank. 5. If everything is in accordance the loan is sanctioned Then bank prepare a loan proposal which contains terms and conditions of loan for approval of H.O. or Manager. Takes the necessary papers and signatures from borrower A loan Account is A/C-------------------------Dr. opened. Where customer Loan A/C

Sanction

Documentation

Disbursement

Respective --------------------------------------------Cr.

TYPES OF LOANS AND ADVANCES NCC Bank offers basically two types of Loan:1. Term Loan 2. Continuous Loan 5.2.1 Term Loan: Term loan are offered to facilitiate larger projects whose financing requirement cannot be satisfied by the time loan. It is offered in three categories and against sufficient collateral. Loans sanctioned for 1 to 3 years and 3 to 5 years are known as short and mid term loans respectively. However loans for more than 5 years are cateorized as long- term loan. 5.2.1.1 Customer Finance Scheme:

The Bank offers a special credit service to the people to improve the quality of their living standard. This sort of credit facilities help the government and private service holders to buy household and other appliances such as Television ,Refrigerator, car etc. People who are not in service are also entitled to get this credit facility only if a guarantor assures to pay off the full liabilities in case the client fails to repay the loan amount. The current rate of interst charged on Customer Credit Scheme is 15 % and the loan is sanctioned for not more than three years. The products bought by this loan will have a joint registration in the name of purchaser and the Bank. 5.2.1.2 House Building Loan: House Building Loans are available to the clints who have the land but ubable to build the house on the land. The approval for this type of loan requires:    Valuation certificate of the Bank. Estimated cost of building and DIT permission certificate.

5.2.1.3 Syndication / Project Loan: The Bank finances large projects and constructions works of clints with outstanding credit rating. After the signing ceremony of the ceremony of the loan, the Bank arranges the loan amount by borrowing from the other banks and disburses the loan amount to the clients. 5.2.1.4 Industrial Loan: Industrial Loans are approved for the improvement of the growth of both small and cottage and medium and large scale manufacturing industries. The rate at which this type of credit facility is allowed depends on the size of the loan client status and the performance of the industry for which the loan is being sanctioned. 5.2.1.5 Lease Financing: This type of financing are usually provide the transportation sector. Now a day this Lease Financing is one of the popular financing projects. The rate at which this type of credit facility is allowed depends on the size of the loan, client status and the performance of the industry for which the loan is being sanctioned. 5.2.1.6 Loan for Salaried Person: Any Permanent salaried officer or employees aged between 20 to 50 years are usually eligible for kind of loan. An eligible person can get one to five lac taka under this loan scheme. Repayable by monthly equal installments including interst within maximum 5 years. 5.2.1.7 House Repairing and Renovation Loan:

2 CC (Hypothecation): cash credit is sometimes allowed against hypothecation of goods. entitled to take legal . He can put back any surplus amount. This loan scheme is newly introduced in National Credie and Commerce Bank Limited.The genuine residential owners can avail of this kind loan to repair.2. Secured Over Draft 2. Thus cash credit is an active and running account to-which deposits and withdrawals affected frequently. Repayment by monthly equal installments including interst within maximum 5 years. against pledge or hypothecation of goods. Cash Credit 5. In a manufacturing company. By virtue of the hypothecation agreement the bank can take the possession of the goods hypothecated . building. Between cc (Hypothecation) and cc (pledge) NCC sanction only cc (Hypothecation). In the case of CC (Hypo) the ownership and possession of the goods remain with the borrower. are the most favorite mode of borrowing by large commercial and industrial concerns in Bangladesh.8 Festival Loan: This type of loan usually offers the shop owners who want capital for in the eve of any festivals. The mortgage of movable property for securing loans called hypothecation. 5.1 Cash Credit (CC): A cash credit it by which the customer is allowed to borrow money up to a certain limit' This is a permanent arrangement and the customer need not draw the sanctioned amount at once. Interest is charged only for the amount withdrawn and not for the whole amount charged. cash credit provides an elastic form of borrowing since the limit fluctuates according to the needs of the business. which he may find with him. 5.2 Continious Loan: There are two Types of continuous loan 1. Sometimes this facility also provided against personal security. renovate their own house. if the borrower-defaults bankers are in that case .1. whose stocks of raw materials and manufactured goods constantly fluctuate. Repayment will start thr 4th month pf availing of the loan. cash credit arrangements are usually.2. it is difficult for the bank to control such changes .2. If the customer does not use the cash credit limit to the full extent. so hypothecation facilities are allowed.2. The repay period is three month from when the loan sanction. flats according to their need and repayment capacity.2.1.2. cash credit. the bank makes a commitment charge' This charge^ is imposed on the unutilized portion of cash credit only. but draw the amount as and-when required. 5. Any owner of house aged 30 to 50 years will be eligible to get loan under this scheme. made.

A. (without having to purchase it by down payment) with easy repayment schedule on case to case basis.A. The procedure and conditions for allowing such facility under prior arrangement or forced circumstances shall be strictly as per related guideline of the bank. (I) Project Loan: NCCBL shall allow Loans for longer duration to enable its investment to be returned by way of repayment after detailed assessment and feasibility study as per its guideline for entrepreneurs and investors willing to come to an arrangement in setting up industries and different production unit complying to rules and regulations of government’s Investment & industrial policy. experience of the borrower. (iii) Packing Credit: This facility also relates to financing at Pre shipment stage. The letter of hypothecation creates an equitable and not a regal charge on the stocks. under this scheme may avail of lease facilities to procure industrial machinery and equipments. (iv) Loan against Imported Merchandise (LIM): Loan against the security of merchandise imported through bank shall be allowed against Pledge of goods. Due to inherent complexities. Maximum Tk. Vehicles etc. NCCBL shall consider such facility under defined guidelines against export of various commodities.10. (viii) Festival Business Loan: The scheme designed to help the genuine businessmen to meet the extra finance required during festivals like. (viii) Payment against Documents (PAD): This facility originates against payment of Import Bills on lodgment of CLEAN shipping documents received from Foreign Correspondent against Letter of Credit opened on behalf of the customers. the portfolio should be discouraged.action against the debtor not only for the debt but also for breach of trust. credit/trust worthiness and above all security aspect as per its guidelines in this regard.500 . bank shall obviously seek adequate eligible securities to cover itself. at quarterly rest. (vi) Transport Loan: NCCBL may extend Transport Loan on close scrutiny of the purpose. (v) Loan Against Trust Receipt (LTR): Bank shall be selective in extending the facility but shall prefer due to comfort in binding the customer legally. Disbursement of this loan is made in recycling order which is to be stopped 15 days before the festival day.00 lac is allowable under this Scheme @ 16% interest P. Puja. Generally such facility shall be against arrangement and preferable against collateral security favoring the Bank. Acceptance of such securities shall be as per laid down principles of the bank and Bangladesh Bank guidelines in this regard. Feasibility. (ii) House Building Loan:Bank shall allow credit facilities under such portfolio strictly as per PPG within the Prudential Regulations of Bangladesh Bank for Consumer Financing. (vii) Lease Finance: An entrepreneur. As investment shall be for longer duration and fraught with unforeseen risks. Eids. Application fee is Tk. Rate of interest under this Scheme is 16% P.

Borrower may be allowed to avail of maximum Tk. Thus the banks can find out . They mention the Name of facility. The disbursement of this loan starts before 1 month of festival and continues till festival. Vice President. knowledge and experience.000/. Autonomous organization. Any salaried employee aged between 20. 100/-. A. It must be emphasized that an Officer will not be delegated lending authority only on the basis of his position. the Board of Directors' will empower the Managing Director and other Executives of the Bank to lend up certain amount under certain terms and conditions at their discretion. Specified lending authority will be delegated by the Managing Director to various Executives after taking into consideration his proven credit judgment.only for minimum 6 months but not more than 15 months @ 16% interest P. Puja. 4.50000 and over.4. Insurance Co. Banks are required to furnish such information in respect of credit limit of Tk.50 years and working in Govt. which collects credit information from the banks. Application fee is Tk. Each individual lending authority will be delegated to him in writing.Govt. The amount of lending authority approved by the Board for various Executives form the upper limits of the authority that may be delegated to an officer holding corporate title. are eligible to avail of this loan. vice President Asst. at quarterly rest. security and charge along with outstanding balance.00 lac with interest @ 16% LENDING AUTHORITY As sure proper and orderly conduct of the business of the Bank. etc. Semi . Senior vice President Vice President Senior Asst.50. The lending officer is broadly categorized as follows: • • • • • • • Managing Director Deputy Managing Director Executive vice President Asst. The managing Director with the Executive Committee/ Board will review all lending authorities periodically.ix) Festival Personal Loan: The scheme formulated to meet emergency financial expenses of the service holders at the time of festivals like Eids.. Construction of Building and renovation. corporate bodies.5 CIB Bangladesh Bank has established within itself a Credit Information Bureau (CIB). the Bank launched Housing Loan Scheme from September 2004. The tenure of the loan is maximum 12 years and maximum amount of loan is tk. 15. After consolidating such information in respect of each customer the central bank supplies to the total limits sanctioned to and the number of banks dealing with a party. (x) NCC Bank Housing Loan Scheme: In order to enable the service holders/ profess ionals/ businessmen in purchasing Flat/House.

That’s why all approval procedure and proper documentation shall be completed prior to the disbursement of the facilities.9 CREDIT DISBURSEMENT Having completely and accurately prepare the necessary loan documents. capacity and capital of the borrower.4. Primary security: These are the security taken by the ownership of the items for which bank provides the facility. Like other banks. 2.if any of their customers is having excessive borrowings from the banking system at any particular time. Documents contain the precise terms of granting loans and they serve as important evidence in the law courts if the circumstances so desire. 4.4. After disbursement. the loan needs to be monitored to ensure whether the terms and conditions of the loan fulfilled by both bank and client or not. In wider sense.4. the loan officer ready to disburse the loan to the borrower’s loan account. all types of loans of NCC BANK fall into following four scales: • • • • Unclassified: Repayment is regular. Doubtful debt: Unlikely to be repaid but special collection efforts may result in partial recovery.8 DOCUMENTATION Documentation can be described as the process or technique of obtaining the relevant documents. he must obtain proper documents executed from the borrower to protect him against willful defaults.6 LOAN CLASSIFICATION Loan classification is a process by which the risk or loss potential associated with the loan accounts of a bank on a particular date is identified and quantified to measure accurately the level of reserves to be maintained by the bank to provide for the probable loss on account those risky loan. 4.4. 4. Bad/ Loss: Very little chance of recovery. 4. Collateral security: Collateral securities refer to the securities deposited by the third party to secure the advance for the borrower in narrow sense.7 SECURITIES 1. Substandard: Repayment is stopped or irregular but has reasonable prospect of improvement. it denotes any type of security on which the bank has a personal right of action on the debtor in respect of the advance. In spite of the fact that banker lends credit to a borrower after inquiring about the character. .

prepare the material.4. production and shipment. and has no way to procure the prepayment. Why to choose packing loan? ·Expand trade opportunities – In case the exporter is short of self-owned capital. which enables the exporter to purchase. Bank healthy proper staffing of the credit departments shall be done through placement of qualified officials who have got the right aptitude. effect delivery as scheduled.4. ·Reduce the occupied capital – Free the exporter from using its self-owned capital at the stages of goods preparation such as production. and the foreign importer agrees to open L/C without acceptance of prepayment terms. Proper analysis of credit proposal is complex and requires a high level of numerical as well as analytical ability and common sense to ensure effective understanding of the concepts and thus common sense. How to handle packing loan operation? ·The Operation flow . Packing loan is a pre-loading short-term financing.10 ADMINSTRATION/MONITORING The administration of the loan process shall ensure. Where repayment and interest servicing performance of a credit deteriorates shall be identifies at an early state and closely monitored to avoid low losses. relieve the pressure of work capital of the exporter. Compliance with all laws and regulations at both local and global levels including bank policy as set out in this document and the Banks credit manual/ circulars. to be used under items of procurement. so as to support the exporter to implement the contract. When to choose packing loan? ·The exporter is short of work capital. produce and trade without difficulty even the self-owned capital is not sufficient. Bank credit procedures as well its required experience. purchase and etc. credit risk analysis. formal training in finance. BANK OF CHINA • Packing Loan A special loan offered by the local bank to the exporter who has received qualified letter of credit. the packing loan will help the exporter to develop business and grasp the trade opportunity successfully.

Foreign sales contract and domestic purchase contract. Written application. sufficient capital to handle this business for the clients. c. b. and has designed diversified credit extension method for trading finance. ADVANTAGES——Advantages of Bank of China ·Predominant credit —— BOC has a long history of over 90 years and has been awarded “the Best Bank in China” by “Euromoney” for successively 8 times. overall integration of operation flow. 6. ·Ample capital —— A Chinese-invested bank with the strongest foreign exchange capital power with a constantly increasing Renminbi capital power. ·Preferential price —— Provide the most beneficial financing plan as per the interest rate on the market. Introduction of the trade . ·Reform with keen determination —— Attentions have been paid to the intermediate businesses. When applying for packing loan. 3. 4. the exporter should submit to the bank: a. the origin L/C should be retained in the financing bank. In normal cases. 5. The financing bank should be the advising bank of the L/C and it can negotiate and pay. • Syndicated Loan . c. the received remittance should be deemed as first resource to repay the packing loan . After application of packing loan. wholly-upgraded service efficiency and rich financial products. especially the strategy of developing various trade financing. Origin L/C. The exporter should sign formal “Loan Contract (Packing Loan)” with the bank. help the clients lower the financial expense to the largest extent. With the progressively improved system of corporate governance.·Attentions 1. 7. 2. ·Accreditation support —— Earliest among domestic commercial banks to implement the unified credit system. the exporter should present the documents to bank for negotiation as soon as possible. Upon goods shipment and obtaining documents under L/C. BOC has continued to advance toward its goal of becoming a leading universal international bank. “soft clauses” that the exporter has no way to fulfill shouldn’t be included in the L/C.

hi-tech industries and regional key projects. 5. transportation. less pressure on banks. 2. syndicated loans are focused on energy. easier management (compared with loans borrowed separately from different banks). related financial institutions are invited. fewer restriction on the use of proceeds (compared with government loans and export credit). Application Procedures: 1.BOC confirms the amount of credit. one bank or several banks (as the arrangers) organize other banks to grant loans to the same borrower under one loan agreement according to agreed terms. Application Materials The requirement is the same as for either working capital loan or term loan. diversified risk. long term.Eligible applicants include corporations incorporated within China's territory or other economic organizations approved by the banks (referred to as the borrower) that comply with General Rules on Loans and Interim Regulation on Syndicated Loans.The bank discusses the loan provisions and financing structure with the client. Syndicated loans have the following features: Huge amount.BOC is duly designated as the lead bank/underwriter for the syndicated loan.The loan memorandum and invitation to the syndicate are prepared. 3. . 4. 2. strategy and make-up are defined.Introduction The syndicated loan is a financing method evolved from bilateral loan. Under the arrangement of syndicated loan. As for the borrower. syndicated loans provide large amounts of loans with longer term and easy operation management (only need to contact with the agent bank).The syndicate timetable. 6.According to the national industrial policies and economic development plan of the local government. and draft the related documents.The bank receives the client's loan information/bidding documents for financing. 7.The client manager of BOC pays attention to client's demand for financing. Eligible Applicants 1.

Business Assortment In term operational modes. The agreement is signed. and commercial housing for all market segments. • Credit to Real Estate Businesses Introduction Credit to Real Estate Businesses is a financial product applicable to businesses engaged in real estate development and operation. In the latter case. The credit to real estate business includes loans for residence development. All parties reach consensus on the loan agreement and guarantee agreement. Eligible Applicants Residence development loan is intended for real estate developers that develop residence either for sale or rent. One is for the real estate development business and the other is for the real estate operation. a real estate developer or an operator borrows loans to develop or operate certain projects and loans are repaid mainly with the proceeds from the projects. 10.The credit lines of the participating banks are finalized. 11. commercial property development loan. including affordable and functional housing. The agent bank is responsible for the routine work.The participating banks make commitment on their subscription. commercial property development and lands development. 9.8. and lands development loan and property acquisition and operation loan. The loan borrowers may include qualified real estate developers or real estate operators that intend to buy newly built and/or stock residence and office estate. 12. All the Corporate Banking Department in BOC domestic branches may accept the applications for such loans. This category includes residence development loan. and release the acquired property for a certain years. Land development loan may be borrowed by institutions or corporations assigned by the government to develop. manage or transfer undeveloped lands. Applicant of commercial property development loan may be the real estate developer that develops office buildings and retail outlets either for sale or rent. And the latter includes loans for acquisition and operation of property. . the credit to Real Estate Business are divided into two kinds.

construction project planning permit. obtained the approval for the land use and started construction within the timeframe set by the contract.The developed residence projects of the applicant fit for his qualifications. 2. Application Qualifications Applying for residence or commercial property development loans 1. 6. 10.The applicant has assigned a State-owned Land Use Right Remise or Assignment Contract or a State-owned Land Use Right Transfer Contract.The applicant should be a real estate developer that has been approved by the State Real Estate Administration and has registered with the Industrial and Commercial Administration. financial and credit conditions and adequate solvency. authentic and valid.The applicant should have sound governance mechanisms. 5. 11. The applicant has completed the application procedures for the development and obtained related documents (if applicable). .The applicant should have sound operational. etc.The applicant should secure loan guarantee in a way approved by BOC.Property acquisition and operation loan borrowed by corporations for purchasing newlybuilt or stocked property for lease.The actual use of the project should be in consistence with its planned purpose. qualified management and strict managerial control system.The applicant should open a basic account or ordinary deposit account in BOC. that the project should have good market prospects. 4. construction commencement permit. 8. and have deposit and settlement business in BOC.The applicant has obtained a valid loan card/certificate issued by the local office of the People’ s Bank of China. 9. including construction land planning permit. obtained a Business License and passed the annual review and obtained the certificate of qualifications issued by related authorities.The use of the loans should comply with the national industrial policies and related laws and regulations. and the expiration of the contract may not be earlier than the expiration of the term of loan. 7. All the related documentation should be complete. 3.

the applicant should have complete. the total budgeted investment has taken into consideration inflation and other unforeseeable elements that may require additional financing. 11. 10. qualified management and strict managerial control. 9.The construction budget and plan must comply with related regulations promulgated by the national and local governments.The applicant should secure loan guarantee in a way approved by BOC. and obtained the approval for the land use and started construction within the timeframe set by the contract. the total budgeted investment has taken into .12.The self-contributed funds should account for at least 35% of the total budgeted investment and be used in the construction before the loans are available. 2. 12.The project should consist with the applicant’s qualifications and the local government should approve the relocation of the original residents. 6.The applicant should have sound operational.The applicant has completed the application procedures for the development and obtained related documents (as local governments stipulated). authentic and valid documentation. 4. Applying for land development loans 1. The expiration of the contract may not be earlier than the expiration of the term of loan.The applicant should open basic account or ordinary account in BOC and have deposit and settlement business with BOC. 7.The applicant has obtained a valid loan card/certificate issued by the local office of the People’s Bank of China. 13. 3. 5.The land to be developed is well planned and has good prospects for transfer.The applicant has signed a contract of the State-owned Land Use Right Remise or Assignment. or a State-owned Land Use Right Transfer Contract.The applicant should have sound governance mechanisms. financial and credit conditions and has adequate solvency.The construction budget and plan should comply with related regulations promulgated by the national and local governments.The applicant is a legal entity of institution entrusted by the government. 8.The use of the loans should comply with related national industrial policies and regulations.

Project financing without recourse Project financing without recourse is also referred to as pure project financing.The introduction of foreign technology. 13. There are two forms of project financing: 1. airports. 2. • Project Financing Introduction Project financing refers to the practice that the sponsor (i. This financing mode is commonly applied to large-scale infrastructure projects which generate steady cash flows. the lending bank acquires property right of the project assets as collateral for the loan. and if its assets or proceeds are inadequate to repay all the loans. roads. In this form of financing. Application Qualifications 1. At the same time. But the guarantor is only liable to the amount of guarantee. shareholder) of a project which establishes a project company borrows loans in the name of the company. uses the cash flows and revenues of the company to repay the loans and leaves the assets of the company as the guarantee. Thus the lending bank has recourse to the third party guarantor.e. equipment. the lending bank will have no recourse to the sponsor of the project. So it is referred to as project financing with limited recourse. The scope of application is expanding to some other areas such as big petrol chemical projects. repayment of the interest and principal of the loans solely depends on performance of the project operation. the lending bank also requires a third party to guarantee the loans.Project financing with limited recourse In this form of financing. 2. 3. such as power generation. . If the project fails to be completed or suffers operational losses.The feasibility study report of the project has been reviewed and approved by related government authorities. bridges.consideration inflation and other unforeseeable elements that may require additional financing.The self-contributed funds must account for at least 35% of the total budgeted investment and be used in the construction before the loans are available. etc. railways. with operational revenue stream of the project as the source of repayment and property right as guarantee. patents and so on have been approved by the economic and foreign trade authorities.The project has been approved by competent government authorities.

The land use right of the project has been secured. Required Materials 1.Approval of the environment authorities.Products of the project are expected to have sound market prospects and good potential of development and profitability. 5.Identity certificate of legal representative. material supply contracts. 6.Project production has reliable source of raw materials and the material supply contract or letter of intent is available. 10. 4. 8..and mortgages the construction in progress or the already-built fixed assets as well as pledges the proceeds made from the project to the creditor. 11. mortgage of . 5.A foreign invested enterprise must provide the official written approval of the joint venture contract and articles of association issued by the Ministry of Foreign Trade and Economic Cooperation. 6.A copy of the business license. 3.A copy of the institution reference code certificate of the People's Republic of China. Water supply. 8. construction project planning permit. etc. 7. 9. completion guarantee.Approval of the feasibility study report issued by related government authorities. 2. communications and other support facilities are available. "take or pay" purchase and sale contracts.The project company can provide guarantee on the completion of the project and financial arrangement for over-expenditure of capital construction cost to the creditor. transfer of insurance interests. Loan card.Products of the project has good marketing channel preferably with "take or pay" purchases and sales contracts.A copy of the foreign currency registration certificate (foreign-invested enterprise??. power supply.The tax registration license?¨national tax and local tax??. plan for overspent costs.Construction land planning permit. 7. and agrees to transfer the insurance interests to the creditor . The shareholders of the projects agree to pledge their equity rights to the creditor.4.

2. foreign currency loans have diversified uses in equipment and material purchase.Upon approval. pledge of the project's usufruct and shareholders' equity right. 5.The agreement is executed and the loan is available for withdrawal. pound sterling.The bank and the project company negotiate and reach agreements on the arrangements of "take or pay " purchase and sale contracts. Euro. and other financing arrangements. BOC can swap the floating rate into fixed one. 4. • Foreign Currency Loans Introduction The Foreign Currency loan of BOC is raised by the Bank on its own and granted to enterprises.. Both the fixed rate and the floating one which is decided with reference to LIBOR plus comprehensive cost of the bank's financing and relevant profits. Currencies of the loans include US dollar. Business lines Foreign currency loans of BOC meet the enterprises' need in working capital requirement as well as fixed asset investment. etc. pledge of the project's usufruct and shareholders' equity right. mortgege of construction in progress or already built fixed assets. Any legal entity with account in BOC and the ability to repay can apply for foreign currency loans. Application Qualifications . Japanese yen and Hong Kong dollar.The bank reviews the application according to the credit approval procedure.The project company submits an application for project financing to the Corporate Banking Department of any branches or head office of BOC. Compared with foreign government loans and Export Credit. medium-term and long-term. are acceptable for the loans. material supply contracts. the project company negotiates on the text of financing contract with the lending bank. transfer of insurance interests.. completion guaranty. 3. Eligible Applicants Foreign currency loans of BOC are only extended to enterprises. arrangements for overspent costs. To meet the customers' requirement..construction in progress or already built fixed assets. Application procedure 1.and vary the term of loan as short-term.

they shall be authorized bythe foreign exchange administrative organto purchase foreign exchange for the repayment.The borrower should be an enterprise or institutional legal entity.Business license of the legal entity verified in the annual check (copy files accepted).Certificate of Loan. and should bear a "Business License for the Enterprise Legal Entity" issued by the industrial and commercial administrative departments. 4. Application procedures Borrowers should submitapplication to the Corporate Banking Department of BOC. Required Materials 1. resolution of the board of directors and the statute of the company.Application for loans.Audited financial statements of the borrowers for the last three years and recent financial statements. 2. or other economic organization or an individual industrial and commercial household registered after verification and ratification of the industrial and commercial administrative organs (or competent authorities). 4.The loans must be used for due and reasonable purposes and can bring economic benefits. . it shall first fulfil preconditions for the withdrawal and register with the foreign exchange administration. BOC examines and verifies the application materials and requires further supplementary materials if necessary.Conform to other BOC regulations on loans.Other documents and certificates required by BOC. 3.A certificate of the legal representative and a letter of authorization. Before the borrower can draw money according to the loan contract. 6. with required documents and materials . 5.The borrowers shall have relevant sources of foreign currency. After the internal approval.1. 3. If the borrowers have no foreign exchange income. BOC signs loan contract with the borrower. 2.

manufacturing and development of the new technologies and products and with regard to the transformation or application of the development results in the production field. service facilities. Applicant The enterprise legal entities. Technical Innovation: Which refers to the technical innovation items aimed at the expanded reproduction by the existing enterprises. developing and manufacturing of the new products as well as related house purchase. storage and official business. institutional legal entities and other economic organizations registered upon verification and ratification of the Industrial and Commercial Administrative organs (or competent authorities) and involved in independent accounting. Business assortment Fixed Asset Loan is divided into Long-term Loan. purchase and installation of the technical equipment. Other Purchases of the Fixed Assets: Which refers to the direct purchase of houses or facilities not built by the enterprise itself for the use of production. .• Fixed Asset Loan Business summary Fixed Asset Loan refers to loans granted by BOC to meet the demands of enterprises in their investments in fixed assets. Capital Construction: Which refers to infrastructure. Investments by enterprises in fixed assets include capital construction. 2. Scientific and Technological Development: Which refers to the activities concerning research. municipal works.The applicant must bear the Business License that has passed the annual examination of the Industrial and Commercial Administrative Departments and the institutional legal entity must bear documents certifying its legal status. new or enlarged productive projects ratified and approved by the authorities concerned of the state. Temporary Circulating Loan and Foreign Exchange Loan based on the following purposes. civil engineering. etc. technical innovation. Qualifications for Application 1.The applicant should bear the Permit or Card for Loan verified and issued by the People's Bank of China.

4. 7. properties and guarantors and form the views on evaluations. 6. 8. the mortgage contract and the guarantee contract and all sides concerned would conclude the contracts.The borrower should submit the required relevant documents to BOC. 5. Applying Procedures 1.The borrower will go through the relevant formalities such as the registration of the contracted mortgage.The applicant should open basic account or ordinary deposit account in BOC.The borrower will present an application for drawing money. documents for establishment of the project on file and documents of comment and reply. 9. safety and profitability in the borrowing.The applicant should fulfill guarantees acknowledged by BOC. 5. .The applicant must bear import instrument or import registration documents in case of applying for foreign exchange fixed asset loans.The funds will be transferred into the borrower ‘s bank account for use. 7. which including the Business License. 2.The applicant should have good economic effects.BOC may make pre-loan investigations and evaluations. 6. with complete auxiliary conditions and ready sources of supply of equipment and materials from abroad. 4.The project has been examined and approved by the governmental departments concerned. verify and examine the pledges. Company Regulations.The borrower should submit a written borrowing application to BOC. 3.The fixed asset loan items should comply with the State industrial policies and credit policies. a good creditability.Upon confirmation after inner-bank review and examination. look into the credit level of the borrower as well as into the legitimacy. both parties will agree with the terms and conditions stipulated in the borrowing contract. etc.The applicant must possess a proportion of capital stipulated by the state. financial annual reports for recent three years.3. and a strong capability to repay debt and a complete and excellent management system. analysis of the project economic benefits and plans for use and repayment of the loans.

The personal credit is evaluated and accepted by the lender. For a holder of the Great Wall golden card of the Bank of China or a holder of the Great Wall ordinary card for two years or more. 3. Upward fluctuation of the interest rate shall not surpass the range provided for by the People's Bank of China. Lending Conditions A borrower (natural person) applying for petty consumer credit loans of the Bank of China must meet the following conditions: 1. 5. Lending Rate ·To the interest rate for petty consumer credit loans.Having opened a demand account or Great Wall credit card account with the Bank of China. 4. 2.Having a legitimate occupation and a stable income. Credit Limit ·The maximum borrowing limit of a petty consumer credit is temporarily set at RMB100.Other conditions made by the lender.• Petty Consumer Credit(Loans) Petty consumer credit loans of the Bank of China are consumer credit loans granted by the lender to borrowers with good credit standing to facilitate normal consumption.Being a natural person aged 18-60 with full capacity of civil conduct. and 6. the interest rate for loans of the same grade set by the People's Bank of China applies.Having city/town registered permanent residence or a valid residence permit. and having the capacity of repaying the loan principal and interest accrued on schedule. Length of Maturity ·The longest maturity of a petty consumer credit is one year. labor service and other fee payments. separate evaluation of personal credit is unnecessary. Loan Application .000.

3. A borrower applying for personal loan pledged by CDs/treasury bonds must also meet the following conditions: 1.Being a holder of undue certificate(s) of time deposit or treasure bonds issued by the Bank of China.For a Great Wall card holder. 4. • Personal Loan Secured by CDs/Treasury Bonds Personal loan pledged by certificates of deposit (CD) /treasury bonds is a kind of business combining deposit and loan in which the client gets a certain amount of Renminbi loan from the bank by pledging undue certificate(s) of time deposit and also repays the principal and interest accrued on schedule. or a passbook for salary payment through an agency or other valid certificates). holder of undue certificates of time deposit in local or foreign currencies issued by the Bank of China or treasure bonds.Other conditions provided for by the lender.Other documents or materials required by the lender. his credit card to be produced. shall be supported by the following materials: 1.Having local registered permanent residence or valid credentials.D. Prospective Borrowers Any resident in China with full capacity for civil conduct. . 2. 3. and 5. 2. card. 4.An application for borrowing.Being a natural person with full capacity of civil conduct.Valid credentials of the borrower (referring to an I.Testimonials of occupation and income (an employee's card and a pay sheet.The application by the borrower to the lender for a loan. may apply for a personal loan pledged by CDs/treasure bonds to the Bank. CDs used for hypothecation are limited to certificates of time deposits issued by the savings outlets in the local administrated area of the tier-one branches of and branches under the Bank of China. a residence booklet and other valid residence certificates).

000. Lending Purpose ·Borrowers may use the loans for purchases of houses. the longest maturity shall be one year. and also provision of their duplicates.000. card. In case the People's Bank of China adjusts the interest rate. the contracted interest rate is still adopted within the length of maturity. Besides. education and other consumer demands. Lending Rate ·The interest rate for loans of the same grade announced by the People's Bank of China applies to the interest rate for personal loans pledged by CDs/treasury bonds. calculated in Renminbi translated at the current day buying rate of foreign exchange [bank note]). residence booklet and other valid residence certificates). Credit Limit ·The minimum amount of a personal loan pledged by CDs/treasury bonds is RMB1. vacation and travel. For automatic renewal certificates of deposit. the length of maturity shall be set according to the nearest due date. for house refurbishing. the interest rate shall be that for the six month loan. For repayment before maturity date.An application for personal loan pledged by CDs/treasury bonds. If multiple certificates of personal deposit are pledged. The amount of the loan shall in principle not exceed 90% of the face value of the pledged CD (for deposits in foreign currencies. the interest shall be calculated according to the originally set interest rate and the actual number of days of borrowing.D. pledgor(referring to I. as well as for working capital demand in normal operations. If the length of maturity is less than six months. The interest rate shall not float beyond the ceiling rate specified by the People's Bank of China. Loan Application The application for a personal loan pledged by CDs/treasury bonds shall be supported by the following materials: 1.000. the length of maturity shall be set according to the length of automatic renewal.Presentation of valid original credentials of the borrower. The maximum borrowing limit of a single loan shall in principle not exceed RMB3. cars and expensive consumer durables.Length of Maturity ·The length of maturity of a personal loan pledged by CDs/treasury bonds may not exceed the due date of the pledged CD . . 2.

5. sanitary tools. etc.Being a natural person aged 18-60 with full capacity of civil conduct.Having a legitimate job and stable economic income. With the consent of the lender.Signature or password for the certificate(s) of deposit held by the borrower. including household electrical appliances. . Large consumer durables loans may be used only for expensive consumer endurables operated by tied sellers that have entered into related agreements with the lender and undertake installment payment business. 4.Other documents of certification or materials required by the lender. Expensive consumer endurables refer to household endurable commodities with a unit price of 3. and having the capacity of repaying on schedule the loan principal and interest accrued. or having an individual or institution with adequate capacity for repayment by subrogation that commits itself to repay the loan principal and interest accrued and also hold joint and several liability. body-building apparatus.000 yuan or higher and a normal service life of more than two years. Loan Repayment ·The borrowers may use cash or deposits with the Bank of China for debt service. Prospective Borrowers A borrower applying for large consumer durables loans must meet the following requirements: 1. musical instruments.Valid original certificate(s) of personal time deposit issued by the Bank of China.3. the borrowers may repay the principal and interest of the loans ahead of schedule. (excluding cars and houses). 2. furniture. computers.Having assets approved by the lender for mortgage or pledge. • Consumer Durables Loans Large consumer durables refer to Renminbi loans granted to individual consumers to facilitate purchases of expensive consumer endurables. 3.

For a borrower close to the age of retirement.4. and also having the sincerity to make repayment by installment or by lump sum.Other requirements raised by the lender. Loan Guarantee In applying for large consumer durables loans. a Guarantee Contract shall be signed between the guarantor and the lender before the loan is granted. and 6. If the length of maturity is within one year. 1. with the longest up to three years (or shorten). or his or her family's use. if the term of one loan is over one year.Having good credit. The down payment of a borrower in purchasing expensive consumer goods shall not be less than 20% of the total value of the purchase. and the guarantee of joint and several liability shall be made clear in the said guarantee. . Length of Maturity ·The length of maturity of large consumer durables loans is usually within one year. interests shall be computed at the contracted interest rate.If the borrower applies for the loan in the form of guarantee. Borrowing Limit ·The credit lines for large consumer durables loans range from RMB2. the borrower must provide the lender with an effective guarantee in the form of guarantee. and the interest rate shall fluctuate upwards in line with the regulations of the People's Bank of China. mortgage or pledge.The purpose for purchasing the commodity is for the borrower's. and the amount of borrowing may not exceed 80% of the total value of the purchase.000 to RMB100. 5. and they shall remain unchanged in case of the adjustment of the legal interest rate. Interest Rate ·The interest rate for large consumer durables loans shall be the rate for loans of the same grade stipulated by the People's Bank of China. the length of maturity may not exceed the age of retirement (usually 55 for a woman and 60 for a man). Lending Currency ·Renminbi.000. and also having opened a Great Wall credit card account or demand deposit account with the Bank of China. a new interest rate shall be adopted in accordance with the relevant grade of interest rate as from the beginning of the following year. in case of adjustment of the legal interest rate.

2. 5. If the borrower uses bonds or certificates of deposits to create a pledge interest.Purchase agreement. the procedures shall be completed before the loan is granted. contract or certificate of payment.Valid credentials of the borrower (referring to I. procedures of pledged property registration are unnecessary. 2. 3. and according to the repayment plan provided in the contract. the borrower may. or passbook for payment on commission or other valid testimonial). they shall be completed before the loan is granted.D. if the lender deems it necessary to handle registration procedures for the pledged property. Method of Repayment 1. certificate of evaluation.If the borrower applies for the loan in the form of pledge.The borrower shall open a current account with the Bank of China.Certificates of job and income (employee's card and pay sheet.If the borrower applies for the loan in the form of mortgage.Other supporting documents or materials required by the lender.An application for borrowing. a Mortgage Contract shall be signed between the mortgagor and the lender. and certificate of credit status of the guarantor. 4.Within the borrowing time limit.Sheet of mortgaged or pledged property. 3. certificate of ownership. residence booklet and other valid residence certificates). if procedures of registration of mortgaged property need to be handled according to laws and regulations.With the consent of the lender. Loan Application The application by the borrower to the lender for a loan shall be supported by: 1. . a Pledge Contract shall be signed between the pledgor and the lender. written opinion of the guarantor agreeing to guarantee. 3. repay the principal and interests of the loan by installment or by lump sum in full. the borrower may service the debt ahead of schedule. according to the methods of repayment provided by the lender. deposit money sufficient for the current repayment of the loan and the interest accrued in the current account prior to the day of repayment and also authorize the lender to withhold the right of deduct -ing the amount from the account on schedule. card. 6.2.

Other requirements raised by the lender.Having local registered permanent residence or valid residence identification. 3. Lending Currency .Must choose a credit-honored and high-rating travel company that is approved by the lender. with the longest not exceeding three years. 5. or having an individual or institution with adequate capacity for repayment by subrogation. approved by the lender.Having assets approved by the lender for mortgage or pledge guarantee. 4. Besides. Length of Maturity ·The length of maturity of travel and vacation loans is usually one year. Lending Rate ·The interest rate for travel and vacation loans shall be the rate for such loans of the same grade announced by the People's Bank of China.Being a natural person with full civil conduct capacity. such a borrower applying for a travel and vacation loan must meet the following conditions: 1. The interest rate shall not fluctuate upward beyond the ceiling set by the People's Bank of China. and having a fixed and specific address. 2. that commits itself as guarantor to repay the loan principal and interest accrued and also holds joint and several liability. Prospective Borrowers Chinese citizens aged 18 and above and also with full civil conduct capacity.• Travel and Vacation Loans Travel and vacation loans refer to loans granted to individual consumers to facilitate their outlays for travel in and outside China organized by various kinds of travel services (companies) approved by the lender.

the borrower shall file a written application and also present the following materials to the lender: 1.000. 3. if the lender deems it necessary. the borrower shall provide guarantee of joint and several liabilities.An application for a travel and vacation consumption loan.If applying for the loan in form of guarantee by a third party received by the lender. the borrower and the lender should go to the notary office for handling the procedures of the relevant contract notarization. . as agreed upon in the conduct and purchase an insurance on mortgage property in the insurance company designated by the lender. Credit Limit ·The minimum amount of initial payment for vacation and travel consumption of the borrower is 30%. if the lender deems it necessary to handle registration procedures for the collateral security. the procedures shall be completed before the loan is granted. Loan Guarantee In applying for a travel and vacation loan. the borrower or mortgagor must conduct the procedures of mortgage registration. The maximum amount of such a loan may in principle not exceed RMB100. The original of the policy must be in the custody of the lender. Loan Application In applying for a travel and vacation loan.If the borrower applies for the loan in the form of pledge.Prior to the making of the loan. the borrower must provide the lender with an effective guarantee in the form of guarantee. registration procedures of collateral security are unnecessary. The guarantee provided under the Guarantee Contract refers to the performance guarantee on which an insurance is taken out by the borrower through an insurance company. 4. with the premium being not less than the sum of the principal and interest of the loan and the insurance expiry date not shorten than the maturity date of the loan. mortgage or pledge. A Guarantee Contract shall be signed between the guarantor and the lender.If applying for the loan in the form of mortgage. 1. a Pledge Contract shall be signed between the pledgor and the lender. but in principle it may not exceed 70% of the total amount of the vacation and travel consumption. The specific borrowing limit may be decided on in line with the local consumption level and guarantee conditions. 2. The lender shall be the first beneficiary covered by this mortgage insurance.·Renminbi. If the borrower uses bonds or certificates of deposits to create security right.

good credit standing. the house refurbishing agreement or contract signed with the refurbishing enterprise approved by the lender. 3. 2. Besides. such a borrower applying for a loan for refurbishing houses must meet the following conditions: 1.2.Having.D.Being a natural person with full capacity for civil conduct. in principle. and 5.Detailed list of property used for mortgage or pledge. card. or letter of commitment by a third party that agrees to make a joint and several liability guarantee. have the capacity of subrogation.Presentation of valid original credentials of the borrower (referring to I. 4.Other supporting documents of certification or materials required by the lender. .Relevant agreement signed with the travel company. The guarantor shall be an individual or unit that is approved by the lender. 3. and having a fixed and specific address. and shoulder joint and several liability.Providing property mortgage or pledge or third party guarantee approved by the lender.Having a legitimate occupation and stable reliable economic income. and the statement of budget for the refurbishing project. 4. • Loans for Refurbishing Houses Loans for refurbishing houses refer to Renminbi consumer loans granted by the lender to borrowers to facilitate their own house refurbishing. Prospective Borrowers Chinese citizens aged 18 and above and also with full capacity for civil conduct.Having local registered permanent residence permit or valid residence permit. and the capacity of debt service on schedule. residence booklet and other valid residence certificates). 5. and also provision of their duplicates.

the borrower shall file a written application to the lender. 7. residence booklet and other original valid residence credentials. the interest rate shall be subject to interest rate adjustment.For expensive luxury refurbishing. if the term is over one year.Testimonials of fixed occupation and stable economic income approved by the lender. cards of the borrower and the spouse.D. 3. Length of Maturity ·The length of maturity of a loan for refurbishing houses is usually one to three years. certificates and materials: 1. Borrowing Limit ·The ceiling of a loan for refurbishing houses shall not exceed 80% of the total house refurbishing amount. and the interest rate shall remain unchanged in case of adjustment of the legal interest rate. interest amount shall be computed in accordance with the contracted interest rate. fill in the related application form and also provide the following documents.I. if any. Loan Application In applying for a loan for refurbishing houses. 4. Lending Rate ·The corresponding lending rate stipulated by the People's Bank of China applies to that on loans for refurbishing houses. or a certificate proving that the borrower has raised and paid over 30% of the house refurbishing amount.If property is used for mortgage or pledge. made by the People's Bank of China.Implementing other lending conditions provided by the lender. provision of the refurbishing agreement or contract signed with the refurbishing enterprise approved by the lender and the statement of budget for the refurbishing project is necessary in principle. 2.Having a certificate of deposit that is not less than 30% of the total amount of the house refurbishing with the bank designated by the lender. provision of a detailed list of the mortgaged or pledged property by the way of security and the commitment or statement agreeing to the mortgage or pledge duly signed by the person entitled to disposal (including the co-owner of property) is necessary. with the longest not exceeding five years inclusive. For the mortgaged . If the length of maturity is within one year inclusive.6. The specific length of maturity depends on the nature of the borrower.

7.property as security. provision of a business license (duplicate) and a certificate of qualifications and credit records (duplicate) of the refurbishing enterprise is necessary in principle. and their applicants must meet the condition that the involved schools have access to state educational loans. an evaluation report issued by the competent department and the insurance document issued by the insurance company shall be provided. • Educational Loans Educational loans include commercial educational loans and state educational loans with fiscal interest discounts.Other documents or materials of certification required by the lender. and for the pledged property. State educational loans belong to credit loans and enjoy a 50% fiscal interest discount. If a guarantee is provided by a third party. lodging and living expenses of the borrowers in studying at domestic higher learning institutes for full-time undergraduate. professional or graduate courses.For expensive luxury refurbishing. Loans for studyingd abroad are currently limited to commercial loans.Certificate of deposit with the Bank of China that is not less than 20% of the total refurbishing amount or a certificate of payment that over 20% of the sum total in refurbishing project has been paid. or studying at universities or for master's or doctor's degree outside the territory with approval. 5. State educational loans refer to educational loans granted by the lender to borrowers that are given fiscal interest discounts by the central financial authorities or local financial sector. a document of ownership certification shall be provided. 6. a written document agreeing to guarantee by the guarantor and the related credit certification materials shall be provided. Commercial Educational Loans Prospective Borrowers . and are used for the tuition and miscellaneous fees. Commercial educational loans refer to consumer loans granted by the lender to borrowers to finance the tuition and miscellaneous fees (including the traveling expenses for going abroad) of the borrowers or the persons under their legal guardianship in studying at domestic secondary schools or ordinary higher learning institutes or for master's or doctor's degree.

Lending Currency ·Renminbi. with the longest not exceeding ten years inclusive. Lending Rate ·The interest rate for loans of the same grade stipulated by the People's Bank of China applies to the lending rate for educational loans.Having the enrollment notification or letter of offer from the school for study.Natural persons with full capacity for civil conduct. and the contracted interest rate shall remain unchanged in case of adjustment of the legal interest rate. namely. pledge and guarantee. in case of adjustment of the legal interest rate. Length of Maturity ·The length of maturity of an educational loan is usually one to six years. if the length of maturity is over one year. interest shall be computed in accordance with the contracted interest rate.Providing asset mortgage or pledge that is accepted by the lender or a guarantee provided by a third party guarantor that has the capacity of repayment by subrogation and also holds joint and several liability. and holder's own passport or border pass if studying at a college abroad. If the length of maturity is one year or shorter. The specific length of maturity depends on the study conditions of the borrower and the nature of guarantee. Borrowing Limit ·The ceiling of an educational loan shall in principle not exceed 80% of the total amount of tuition and miscellaneous fees. 4. and having the materials of certification on necessary tuition and miscellaneous fees during the period of study provided by the school for study. 5. 2.Having permanent residence or valid residence permit. . 3. mortgage. student's identity card.The borrower already has a certain proportion of the money needed by the educated persons.1. Loan Guarantee There are three loan guarantee modes. the interest rate shall be subject to the adjustment by the People's Bank of China.

If property is used for mortgage or pledge. the rate of pledge for certificates of deposit or registered treasury bonds is 90%.If a loan is applied by pledging certificates of deposit or registered treasury bonds. necessary id provision of a detailed list of the mortgaged or pledged property and the commitment or statement agreeing to the mortgage or pledge by the person entitled to the disposal (including co-owner of property) with his/her signature thereon. and for certificates of deposit issued by other banks or other pledged security. For mortgaged property. If a guarantee is provided by a third party. 2.If a loan is applied in the mode of third party guarantee. but the loan may not exceed 80% of the total amount of tuition and miscellaneous fees. a document of ownership or entitlement certification shall be provided.Having full capacity for civil conduct (for a minor. . cards of the borrower.Enrollment Notification of the school for study or student's identity card.D. and for pledged property.I. but the loan may not exceed 80% of the total amount of tuition and miscellaneous fees. But it may be raised to 80% in case of joint and several liability guarantee provided by a bank or an insurance company. Loan Application In applying for an educational loan. 3. the original of valid residence certificates. . fill in related application forms and also present the following documents and certification materials: 1. and materials of certification drawn by the school for study on the total amount of tuition and miscellaneous fees needed by the educated persons during the period of study. or the original of passport or pass of the educated person and its duplicate for file keeping in case of studying abroad. a written letter of consent provided by his or her legal guardian is necessary). an evaluation report issued by the competent department and the insurance document issued by the insurance company shall be provided.If a loan is applied by mortgaging a house or other real estate. the borrower shall file a written borrowing application to the lender. 3. the rate of pledge depends on the value of the pledge security. 2. the ceiling of borrowing may not exceed 70% of the total amount of tuition and miscellaneous fees. the rate of mortgage is 70% of the evaluated value. a written document of the guarantor agreeing to guarantee and the related credit certification materials shall be provided.1. State Educational Loans Borrowing Conditions 1.

the length of maturity during the period of study is extended accordingly.The school for study has signed a bank-school cooperation agreement with the Bank of China. 3.Agreeing that if the loan is overdue for one year and an extension is not approved. . Lending Rate ·The interest rate for loans of the same grade stipulated by the People's Bank of China applies to the lending rate for state educational loans.Reaching the study and conduct criteria required by the lender.D. certificates and materials: 1. the number of his or her I. 4.Original and duplicate valid personal certificates of residence permit and identity. If a student granted the loan further studies for a graduate or a second bachelor's degree after the undergraduate course ends. Length of Maturity ·The length of maturity of a state educational loan usually does not generally exceed eight years. and the principal and interest of the loan shall be repaid up within four years after graduation from the graduate or the second bachelor's degree. 6. Loan Application In applying for a state educational loan. fill in related application forms and also present the following documents. without any act of bad credit. Borrowing Limit ·The amount of a state educational loan shall in principle not exceed RMB6000 per person for one year.Having a valid residence permit. the borrower shall file a written borrowing application to the lender.Enrollment Notification of the school for study and its duplicate.With recommendation by an reference and also with a witness to provide a written certificate of his or her identity. the lender is to make public his or her name. 5. card and the act of default at the higher learning institute where he or she studies or on related media. or student's identity card and its duplicate.2. 2.

Lending Currency ·Limited to Renminbi for now. ·Legal persons: with legal person status and loan repayment capacity. able to afford the down payment for the car purchase. having guarantee approved by the lender. . Lending Rate ·It is adopted according to the corresponding lending rate announced by the People's Bank of China. 4. the amount of borrowing may not exceed 80% of the car price. and good credit standing. with stable occupation and capacity of debt service.3. having proceeds for the down payment for the car purchase that are not less than the prescribed amount placed at the designated bank.Certificate of tuition and miscellaneous fees and living expenses of the student during the period of study drawn by the school for study. etc.Letter of recommendation and a certificate agreeing to the borrower's access to 50% interest discount of state educational loan drawn by the school for study. or having individual or institutional guarantor with full repayment capacity by subrogation. Prospective Borrowers ·Individuals: with full capacity for civil conduct. Credit Limit ·The down payment being 20% of the car price. Length of Maturity ·The longest period not exceeding five years. able to provide valid property for mortgage or pledge. • Auto Loans Auto loans refer to Renminbi consumer loans granted to individuals or legal persons to finance the purchases of cars.

and documents of certification of the legal representative. . valid credentials. ·For a legal person: an application for borrowing. documents of certification required for guarantee. financial statements for the previous year and recent period. legal person license. Housing Loans on Own Account Housing loans on own account refer to loans granted to individual housing buyers to facilitate housing purchases that take credit funds of the bank as the source. Loan Repayment ·Payment of equal amount of principal or of principal and interest by a monthly installments. Housing loans are divided into housing loans on own account. the borrower is permitted to effect an early payment in part or in full. car purchase contract or agreement signed with the designated dealers. Prospective Borrowers ·Natural persons with full capacity for civil conduct. The borrower shall deposit prior to monthly repayment date provided for in the loan contract sufficient monthly installment in its account so that the bank can directly deduct the repayment of the loan principal and interest. the borrower and the lender may choose a repayment pattern by consultation.Loan Application Materials required in a car loan application: ·For an individual: an application for borrowing. and all documents of certification required in the guarantee. housing loans on authorization and combined loans. With the consent of the lender. certificate of legal person code. borrowing card or borrowing permit granted by the People's Bank of China. • Housing Loans Housing loans of the Bank of China refer to loans granted by the bank to borrowers to facilitate housing purchases. certificate of occupation and income. car purchase contract or agreement signed with the designated dealer. certificate of the debt service ability approved by the creditor.

5.Mortgaging the property of the borrower or a third party (including legal person or natural person). Borrowing Limit ·The amount of a single loan shall exceed neither 80% of the evaluated value of the house purchased.The borrower buys general credit insurance.Pledging the property of the borrower or a third party (including legal person or natural person). For housing loans in foreign currencies. Hong Kong and Macao compatriots.Combined guarantee. not more than eight years for a foreign exchange loan. including mortgaging the house purchased with this loan. 4. guarantee by a third party with joint and several liability may be added to the shortfall. which may include: 1. Loan Application . 3. the corresponding lending rate announced by the Bank of China is adopted. If the value of the mortgaged property and house or pledged property provided by the borrower is inadequate to cover the amount of the loan. nor in the meantime the borrowing ceiling as provided by the lender. 2. Lending Currency ·Housing loans on own account are made in Renminbi and foreign currencies. sources of repayment and reliable guarantee.Length of Maturity ·Not more than 30 years for a Renminbi loan. Lending Rate ·The lending rate set by the People's Bank of China applies to the interest rate for housing loans on own account. The prospective borrowers of loans in foreign currencies shall be overseas Chinese. employees of foreign-funded enterprises and others who have higher economic incomes. Mode of Guarantee The lender chooses the mode of guarantee for a housing loan according to the specific conditions.Guarantee by a third party with joint and several liability.

agreement or other document of approval that comply with the provisions. and with the public reserve deposits as the source of funds.Housing purchase contract. card.Testimonial to prove steady family income of the borrower. 5. 4. according to the prescribed requirements. Housing Loans on Authorization Housing loans on authorization refer to loans to individuals who buy ordinary houses granted by the bank on the authorization of the public reserve fund management department. and the certificate certifying the consent to mortgage or pledge given by the person entitled to disposal. 3. certificate of ownership (title deed for a house or other titles).A written document stating the consent given by the guarantor to the guarantee. residence booklet or other valid residence certificate). Lending Currency .Other materials required by the lender. and a credit standing certificate about the guarantor. 2. Lending Rate ·The interest rate for housing reserve loans set by the People's Bank of China applies to the lending rate. Length of Maturity ·Not more than 30 years. Prospective Borrowers ·Natural persons who have full capacity for civil conduct and also are depositors of housing reserve who deposit housing reserve funds at the funds management center or retired veteran cadres.A detailed list of mortgaged or pledged property.The application for a housing loan shall be supported by the following materials: 1. 7. 6. retired workers and staff members of collective deposit units.Credentials (referring to I.D. letter of intent.An evaluation certificate for the mortgaged property issued by a competent department.

000 yuan. 4. 2.Mortgage plus general guarantee. 5.Guarantee with joint and several liability. 4. a letter of guarantee stating the consent given by the guarantor to the guarantee. residence booklet and marriage certificate.Valid credentials. It is a combination of a housing loan on authorization and a housing loan on own account from the bank.Mortgage plus all-risks insurance for housing purchase. Borrowing Limit ·The amount of a single loan shall not exceed 80% of the evaluated value of the house to be purchased. Combined Housing Loans A combined housing loan refers to a loan granted by the bank to the same borrower to facilitate the purchase of an ordinary house for self use that takes the public reserve deposit and the credit fund as the sources. Mode of Guarantee 1.Housing purchase contract or letter of intent.·Renminbi.Pledge guarantee.If involving the provision of guarantee. 3.Other materials the presentation of which are required by the handling person of the funds management center. and shall also not exceed RMB 390. 2. Loan Application The application for a housing loan shall be supported by the following materials: 1.Borrowing application that is filled in and sealed by the unit with which the borrower works. 3. .