Precious Metal Pledged Loans are short-term loans granted to borrowers that apply to IB with the pledge of his or her precious metal that is deposited in the account of the Shanghai Gold Exchange (SGE) and may circulate in SGE.
Precious metal specifically refers to the gold that is deposited in the account of SGE and may circulate in SGE.
The customer (pledger) should sign a pledge contract with IB and go through registration procedures for a pledge of precious metal with SGE.
• Application requirements
1. Applicants must be Chinese citizens (excluding Hong Kong, Macau and Taiwan residents) aged between 18 (inclusive) and 60 (inclusive) with a capacity for civil conduct.
2. Applicants should have a good credit rating and should have the capacity to make the repayments.
3. The borrower must be the owner of the pledged precious metal and no precious metal provided by a third party are allowed.
4. The precious metal for pledge should not have been frozen or pledged and should be free of dispute over its ownership.
5. Other requirements specified by IB.
• Credit line, tenure and interest rate
1. The pledge rate of a precious metal pledged loan with gold as the pledge should not exceed 80% of the pledged market value of the precious metal.
2. The tenure shall not exceed one year.
3. Loan interest rate: Follows the benchmark interest rate for the corresponding term and the corresponding bracket as announced by the PBC and the responsive floating ratio.
• Method of repayment
Interest should be paid monthly and principal shall be repaid in a lump sum when loan tenure expires.
• Application materials
1. Application form for Personal Pledged Loan of the Industrial Bank.
2. Valid proof of identification and proof of residence of the borrower.
3. Relevant agreement or contract on the loan purposes, or other certification materials.
4. Other materials specified by IB.
(The above information is for reference only and specific handling requirements are subject to provisions of local IB branches. Please consult your local IB outlet for details before going through relevant application procedures.)
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