Product Definition Guide
Personal pledge loan refers to the credit business where the borrower gets a certain amount of loan from IB with the personal fixed deposit receipt under his or her own name, certificate treasury bond, personal insurance policy right, beneficiary right to personal wealth management product, beneficiary right to personal trust, and personal precious metal as the pledge, and repays both the principal and interests as agreed upon maturity.
• Application requirements
1. Applicants must be Chinese citizens (excluding Hong Kong, Macau and Taiwan residents) aged between 18 (inclusive) and 60 (inclusive) years old that have full civil capacity. The borrower of personal deposit loan based on fixed deposit book must be a natural person with full civil capacity. If the borrower is a foreigner, one without nationality, and a Hong Kong, Macau and Taiwan resident, he or she shall have lived in the People's Republic of China for a year and have a permanent residence and occupation.
2. Applicants should have the capacity of repayment and should have a good credit standing;
3. Applicants should provide the pledge meeting the requirements of IB;
4. Other loan requirements specified by IB.
The guarantee used as pledge must meet all of the following requirements:
1. If a fixed deposit book is used as pledge:
The undue personal fixed deposit receipt (book) both in home and foreign currencies issued by IB under the name of the borrower, simple fixed deposit, or undue fixed deposit in an IB card; the undue RMB fixed deposit receipt issued by a financial institution that is recognized by IB as a "low-risk bank" and that is located in the same city as the loan handling bank.
2. If the certificate treasury bond is used as pledge:
It is limited to the certificate treasury under the name of the borrower subscribed with IB.
3. If the insurance policy right is used as pledge:
The insurance policy should be issued by an insurance company which has signed cooperation agreement with IB and can be surrendered and cashed at any time, and the insurance benefits are foreseeable upon making the pledge. Or, the insurance policy should have cash value and belong to deposit or investment dividends.
4. If beneficiary right to wealth management product is used as pledge:
It is limited to the beneficiary right to a wealth management product both in home and foreign currencies purchased in the name of the borrower and sold by IB, and the agreement corresponding to the pledged beneficiary right to the wealth management product does not provide that the wealth management product both in home and foreign currencies is not subject to the circumstance which may result in the nullification of pledge such as that the wealth management product both in home and foreign currencies cannot be transferred and pledged.
5. If beneficiary right to trust is used as pledge:
It should be the beneficiary right to a trust product that is held the borrower and issued with the credit assets transferred by IB by way of repo as the principal part or that is guaranteed by IB for a trust program.
6. If personal precious metal is used as pledge:
The borrower may use the gold, negotiable in Shanghai Gold Exchange, that is owned by himself or herself and trusted in the account of Shanghai Gold Exchange as the pledge, and handle the registration for precious metal pledge with Shanghai Gold Exchange.
Any pledge that is mature, has a disputable ownership, or has been guaranteed, frozen, reported for loss, or countermanded under law cannot be used as guarantee.
• Loan line, tenure and interest rate
• Loan line
1. The pledge rates for personal deposit loan based on fixed deposit receipt are as follows:
(1) The pledge rate for the deposit receipt in the same currency may not exceed 90% at most;
(2) The pledge rate for the deposit receipt in different currencies may not exceed 80% at most;
2. The amount of loan based on certificate treasury pledge may not exceed 90% of the pledged value of the treasury;
3. The amount of loan based on insurance policy pledge may not exceed 90% of the cash value of insurance policy confirmed by the insurance company;
4. If a principal-guaranteed wealth management product is used to apply for the pledge loan based on personal wealth management product, the highest pledge rate for the wealth management product in home currency is 90% at most, and that for the wealth management product in foreign currency is 80%. As for non-principal-guaranteed wealth management product, whether it can be used as pledge and the highest pledge rate can be determined based on such factors as product risk level.
5. The amount of pledge loan based on beneficiary right to personal trust may not exceed 60% of the principal amount of beneficiary right to trust.
6. 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 previous metal.
Where the pledge and loan are in different currencies, the pledge rate shall be converted at the spot exchange (cash) offer price of RMB foreign exchange rate released by IB upon the date of business transaction.
• Loan tenure
If the loan tenure neither exceed a year, nor go beyond the mature date of pledge to the maximum. If many pledges are used as guarantee, the loan tenure shall be determined based on the pledge that will become mature in the shortest time. If the deposit receipt issued by IB is used as pledge, the mature date of loan may go beyond the maturity of the deposit receipt, but the deposited money must be re-deposited automatically when the fixed deposit receipt becomes due in the loan tenure.
• Loan interest rate
The personal pledge loan shall follow the benchmark loan interest rate for the corresponding term and bracket as announced by the PBOC and can be floated within the given scope.
• Application materials
1. Application for Personal Pledged Loan of the Industrial Bank;
2. Valid identity certificate and residence certification;
3. Original or copy of pledge (agreement) to be used as guarantee;
4. Relevant agreement or contract on the loan purposes, or other certification materials;
5. Other materials required.
(The above contents can only be used as reference. The availability of the business and the specific transaction requirements are subject to the regulations of local IB branches. Please consult the local IB branches for details before going through relevant formalities.)