【Introduction】  【User's Guide】

【Introduction】

The Personal Commercial House Loan refers to a loan granted by IB to borrowers for the purpose of purchasing, building or overhauling various types of real-estate property for commercial use (excluding second-hand commercial houses) .

【User's Guide】

Personal commercial house loans are specially designed to support the privately or individually-owned business, partnership enterprises, and sole proprietorship enterprises in purchasing real-estate property for commercial purposes.

Eligibility

1. A natural person with local ID card or other valid proof of identification and full civil capacity;
2. The applicant is required to have a permanent residence in the place where application is submitted;
3. The applicant is required to have good credit history and a stable income as well as being able to make the down payment, which is 50% of the total value of the commercial property;
4. The applicant must be able to offer an acceptable asset as mortgage or pledge, or a third party providing joint guarantee;
5. The applicant must open a personal settlement account with IB;
6. The applicant must adhere to other terms and conditions set by IB.

Line, Term and Rate

 
Personal commercial house loans granted to borrowers are a maximum of 50% of the contract value of the commercial property. Loan term is up to 10 years. The interest rate is no lower than 1.1 times the interest rate set by the PBC for the corresponding period and level.

Documents Required

1. Valid proof of identification and marital status certification of the borrower and joint owner (ID card, residence booklet or other valid certificate of residence);

2. Contract or agreement for purchase of commercial property;

3. Certificate of family assets and income of the borrower (including proof of income provided by current employer and certificate of other assets);

4. Certificate of the fund self-financed by the borrower equal to 40% of the contract value of the commercial property. In the event that prepayment has been made to the developer for the property, the invoice of such prepayment (original and photocopy) is required;

5. Certificate of valid guarantee;

(1) If a real-estate property (including the commercial property to be purchased) is mortgaged, registration to mortgage the property right or a property prior to sale is required. Furthermore, the borrower should take out real-estate property insurance or entrust the loaner to take out such insurance before the loan is granted;

 
(2) If a jointly owned property is mortgaged, a written document that proves that joint owners are in agreement regarding the mortgaging is required;

(3) If any other property is mortgaged or if joint guarantee provided by a third party is involved, the related regulations formulated by IB should be observed.

Loan Repayment

For personal housing 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 personal housing 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.