【Introduction】    【User's Guide】

【Introduction】

The term Personal Second-hand Housing (or commercial property) Loan refers to a loan Granted by IB to borrowers to purchase second-hand houses (or commercial house) for self-use.

【User's Guide】

Eligibility

1. A natural person between 18 (including 18) and 65 (including 65) with valid proof of identification, resident proof, income certification, good credit history and full civil capacity;

2. The sum of applicant's age and loan tenure should not exceed 70 in principle;

3. The applicant is required to have a stable occupation and income and to be able to pay back the loan in installments, both principal and interest, on time and in the right amount. The monthly repayment for the loan should not be higher than 50% (including 50%) of the applicant's income and the total of monthly debts should not be higher than 55% (including 55%) of the applicant's income;

4. The applicant is required to open a personal settlement account with IB and use Natural Life Family Wealth Management Card or other settlement tools for loan settlement;

5. The applicant is required to adhere to other terms and conditions set by IB (including all varieties covered by this regulation).

Requirements on Second-hand Properties to be Purchased

1. The property right of the house must be clearly defined and a property ownership certificate and land certificate issued by the administration of real estate and land are required;

2. The house is required to be in compliance with related requirements of the state and allowed to be traded in the market;

3. The real-estate to be mortgaged is required to be located in the county where the application is submitted or in a central city above the county in question. Better liquidity is required as is appraisal by a real estate assessment institution designated by IB;

4. The age of the house (counted from the date of completion) should not exceed 20 years (including 20 years) in principle;

5. The house cannot be involved in any city relocation or reconstruction plan;

6. The house must be free of property right dissension and the joint owners of the house must agree to the selling of the house; if the house has been rented, the tenants are required to agree to move out;

7. In case the house is sold due to housing reform, the applicant can not have signed any house sales agreement with the seller which carries restrictions on the transfer of such property;

8. Other terms and conditions set by IB should be met.

Line, Term and Rate

1. The loan amount should not exceed 70% of the value of the house as appraised by a real estate appraisal institution designated by IB;

2. For second-hand residential houses, loan tenure should not exceed 30 years; for second-hand commercial property, loan tenure should not exceed 10 years, and the sum of loan tenure and the age of the house should not exceed 15 years in principle;

3. For loans with tenure shorter than one year (including one year), a contracted interest rate should apply, and interest calculation should not be segmented in the event of any adjustment to the official rate of interest. For loans with tenure longer than one year, interest rate should be determined in each year, and the new rate should apply from the beginning of the next year in the event that any adjustment is made to the official rate of interest.

Loan Repayment

For loans with tenure shorter than one year (including one year), principal and interest should be repaid when the loan matures. Borrowers may also choose interest calculation on a monthly (or quarterly) basis and repay principal and interest when the loan matures.

For loans with tenure longer than one year, borrowers may choose straight-line repayment schedule, reducing-balance repayment schedule or other repayment modes after negotiating with IB.