Description

A loan granted to the borrower aiming to purchase, construct, or overhaul house of commercial purpose (second-hand commercial house excluded).

Handling Guide

Dedicatedly designed to finance the purchase of commercial house for privately or individually-owned business, partnership enterprises, and sole proprietorship enterprises to perform business operations.

Requirements on Applicant

The applicant of the commercial house loan shall

•  Be a natural person with full civil capacity, and hold valid local ID card or other ID documents;

•  Owe fixed residence where the handling bank locates;

•  Be creditworthy with steady income, and have the ability to pay the down payment that meets 40% (or higher) of the purchase price;

•  Can offer mortgage, pledge or third-party guarantee of joint and several liabilities accepted by the bank;

•  Open personal settlement account with the bank;

•  Meet other requirements prescribed by the bank.

Line, Period and Rate

•  The commercial house loan can cover up to 60% of the total purchase price or the appraised value from a real estate appraisal agency recognized by the bank, with credit period up to 10 years.

•  The loan rate is quoted from the PBOC and can be floated within preset bound. New rate will be quoted at Jan 1 of the next year upon any rate adjustment.

Documents Prepared

•  ID documents (resident's ID card, residence booklet or other valid residence certificates) of the lender and his/her joint property holder, as well as the marital status certificates.

•  Purchase contract or agreement signed between the borrower and the developer.

•  Certificates of the borrower's household assets and income, including the income certificate from his/her employer and other certificates of his/her assets.

•  Certificate of the self-raised funds that meets 40% (or higher) of the purchase price, or original and photocopy of the down payment receipt with the required amount issued by the developer.

•  Guarantee documents.

•  In the case of using the house title as collateral, the title mortgage registration of the house or the presale house shall be fulfilled, the hazard insurance and other relevant insurance shall be handled by the borrower, or by the lender at the borrower's entrustment, prior to the closing of the mortgage.

•  In the case of using joint property as collateral, written authorization from the joint holder shall be presented.

•  In the case of using assets as pledge or providing a third-party guarantee of joint and several liabilities, the handling shall be pursuant to relevant regulations of the bank.

Repayment

Two repayment manners are available for loans within 1 year:

•  One-off repayment of the lump-sum principal and interest, and

•  Monthly/quarterly interest installment and principal and interest of the last period upon due.

For loan with period beyond 1 year, the repayment mode is negotiable in accordance with relevant regulations of the bank.