Loan

1. Product Definition

Granting loan is a kind of credit activity in which the commercial banks or other credit institutions lends money, at a certain interest rate and an agreed repayment period, to other institutions in need of funds. 

Based on different criteria such as type of currency, purpose of loan, loan term, method of guarantee and interest rate, loans can be divided into RMB loan and foreign exchange loan, fixed asset loan and working capital loan, short-term loan, medium-term loan and long-term loan, credit loan and guarantee loan, fixed rate loan and floating rate loan. 

2. Product Features

The Bank offers a variety of loans to customers: 

Fixed asset loan: It refers to the loan granted by the Bank to meet the long-term financial needs of an enterprise for the purposes of basic construction or engineering construction, purchase and installation of technical equipment of technical transformation projects, etc. It mainly includes basic construction loan and technical transformation loan. 

Working capital loan: Also known as short-term capital circulation loan, it refers to the loan granted by the Bank to solve the working capital insufficiency of an enterprise in production and business activities. Working capital loans can be divided into temporary loan, short-term loan and medium-term working capital loan based on loan terms. 

Sub-loan: It refers to the buyer credit, government loan and mixed loan provided by any foreign government, bank or other financial institution, for which the Bank is responsible for on-lending, as well as foreign commercial loan supporting the above loans. 

Consortium loan: Also known as syndicated loan, it is a financing method derived from the bilateral bank loan, in which one or more banks, serving as the leader, organize(s) other banks to provide a loan to the same borrower in the same loan agreement based on the agreed conditions.

Real estate development loan: It refers to a loan granted to a real estate developer for the purpose of building houses for sale in the market. Eligible applicants are real estate developers with high strength and sound credit standing that have been set up upon the approval of the authorities concerned, and that have registered with and gained business license from the administrative department for industry and commerce. 

Project loan: It refers to a loan granted to a new project in which the undertaker of the project sets up a project company for financing and business operation. Assumed by the project company, the loan is secured by the assets of the company, with the source of repayment from cash flow and revenues of the company. 

3. Target Customers

Corporations, public institutions, other economic entities, individual businesses that have been approved by and registered with the administrative department for industry and commerce or other competent authorities, or natural persons with Chinese nationality and full civil capacity can apply to the Bank for loans. 

4. Application Procedures

To apply to the Bank for a loan, a customer must present the following documents: 

Loan application, business license, the audited financial statements of the latest three years, and loan note, etc.;  

For a guarantee based loan, it is also required to provide documents related to the guarantor and guarantee contract, etc.; 

For a mortgage/pledge based loan, it is also required to provide the list of mortgages/pledges, evaluation report, ownership certification and mortgage/pledge contract, etc.; 

For a fixed asset loan, it is also required to provide the feasibility study report on and reply by the competent authorities to the relevant project, certification on the arrival of other funds, and certification on the implementation of other supporting conditions, etc.; 

For a working capital loan, it is also required to provide the contracts on purchase of raw materials and auxiliary materials, product sale contract or import/export business contract, certification on the arrival or availability of other funds, etc.; 

For a real estate development loan, it is also required to provide the qualification certificate, certificate of land use right, investment permit, construction permit, and commencement permit of the relevant real estate developer, etc.