Description

A pledge credit secured by insurance policy.

Handling Guide

It is an excellent personal wealth management facility, enabling the insurance policy holder to realize the liquidity of the funds put in as insurance premiums.

Requirements on Applicant

•  Be a natural person with full civil capacity;

•  Be creditworthy and have the ability to repay timely;

•  Can offer insurance policies acknowledged by the bank;

•  Meet other requirements prescribed by the bank.

Documents Prepared

•  Policy Pledged Loan Application Form;

•  Original and photocopy of the borrower's valid ID documents (in the case that using third-party insurance policies as collateral, original and photocopy of the third party's valid ID documents are also required);

•  Original of the insurance policies that to be served as pledge;

•  Receipt of the insurance premium payment;

•  Other documents required by the bank.

Line, Period and Rate

•  Credit Line : Up to 90% of the value of the policies recognized by the insurance company with a threshold of RMB 1,000.

•  Credit Period: Up to 5 years for policies of savings nature and short-term within 1 year for policies of investment nature.

•  Credit Rate : The rate is quoted from the PBOC and can be floated within the range preset by the PBOC.

Repayment

Two repayment modes are available for loans within 1 year:

(1) One-off repayment of the lump-sum principal and interest, and

(2) Several payments of interest only by month/quarter and principal and interest of the last term upon due.

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