Document Sample
Credit Powered By Docstoc
Loans - Category
Lending takes many forms. In accordance with the nature of the guarantee
can be divided into: ¢Ù mortgage refers to the goods and merchandise
certificate (railway bill of lading, etc.) or other articles for the
mortgage loans; ¢Ú credit loans, bank lending section, no guarantee of a
certain kind normally issued only by the signature of the borrower's
notes. According to the different loan term, can be divided into: ¢Ù term
loan, the borrower must pay principal and interest at the agreed time
limit; ¢Ú demand loans, term loans are not provided, the customer can
always pay all or part of the loans, banks may also notify the borrower
to repay the loan.
Loans - meaning
Banks through loans to the concentration of running out of money and
monetary funds to meet the additional funds to expand production of
social needs, promote economic development; the same time can thus obtain
loans interest income, increased the accumulation of the banks
themselves. In China, compensation for the use of loans also used the
principle of promoting enterprises to improve management; and allocation
of funds to bank credit as an important way to regulate and manage the
economy but also as an important economic lever.
Loans - Uses
Bank of China after the founding of the longer period, the field of fixed
assets are not loans, credit funds are mainly used to address working
capital needs. After 1979, production equipment began tapping the
potential, innovation, transformation, transformation grant loans (short-
term equipment loans) and a number of infrastructure loans, and since
1979 on capital investment and gradually replaced by the Bank Financial
Allocation loans. Meanwhile, the bank loans on individual economy is up
As of late 1985, bank loans, fixed asset loans (not including the
"provision to change credit") accounts for 12% of total loans;
bank loans and corporate liquidity ratio of own capital, state-owned
industrial enterprise average of 58:42 , state-run business (including
foreign enterprises) average 89:11. Bank lending is also an important
source of funds collective enterprises.
Loans - Object

Industrial and Commercial Bank of China
China's bank loans, said its loans to the object, including working
capital loans, loans for technological transformation, infrastructure
loans, overhaul lending, settlement loans, agricultural futures down
payment loans, revolving loans for agricultural production and
agricultural equipment loans, other a small number of mortgage loans and
bills discounted.
With the reform of China's banking system, Bank of China after the
central bank functions in a special exercise, no longer directly on the
unit and individual loans, loans on units and individuals by professional
The specialized banks in the loan business on the basic division of labor
as follows: Industrial and Commercial Bank of China is responsible for
state-run industry and transportation, state commercial short-term
working capital loans and equipment loans for all, and the urban
collective and private economies of the loan; Agricultural Bank of China
is responsible for Agriculture, forestry, animal husbandry, and fisheries
of various industries and rural commercial and industrial loans; Bank of
China (1949 ~) is responsible for foreign trade enterprises and foreign
exchange loans of RMB loans; China Construction Bank loans for
infrastructure; China Investment Bank is mainly responsible for the use
of the world raise bank loans and the other foreign.
Loans - Application
?First, the subject accounting companies (banks) by the granting of loans
to various customers, including the pledge loans, mortgage loans,
guaranteed loans, credit loans.
Enterprises (banks) by the granting of a credit nature of syndicated
loans, trade financing, agreement overdraft, credit card advances,
transferred loans and advances, etc., in the subject accounts; also can
be set separately, "Syndicated Loan", "Trade Finance"
"Agreement overdraft", "credit card advances,"
"transfer credit", "advances" and other subjects.
Business (insurance) policy holders as security for loans can be the
subject changed to "1303 policy holders as security for loans"
Enterprises (pawn) the pledge loans, mortgages can be the subject changed
to "1303 as security for loans", "1305 Mortgage"
Enterprise commissioned by the bank or other financial institutions
lending money to other units, could be the subject changed to "1303
entrusted loans" subject.

Second, the subject may loan, customers are "principal",
"interest adjustment", "impaired", and so detailed

Third, the loan deal with major accounts.
(A) business loans, the loan contract shall be the principal, debit the
subject (principal), the actual amount paid, credited to
"deposits", "deposit central bank money", etc, there
should be different , debit or credit to the subject (interest
?The balance sheet date, should the loan principal and contract interest
rate contracts to determine interest receivable, debit, "interest
receivable" subjects, according to the amortized cost of loans and
real interest rate to determine the interest income, credit
"Interest income" subject, according to the difference between
the debit or credit of the subject (interest adjustment). Contract
interest rate and real interest rate difference is relatively small, the
contract can also be used to determine interest rates.
?Recovery of loans, the amount should be returned to customers, debit
"deposits", "deposit central bank money", etc,
according to recover the amount of interest receivable and credit
"interest receivable" subjects, according to the return of the
loan principal credited to the subject (principal), according to the
difference credited to "interest income" subject. Adjust the
existing balance of interests should also be carried forward.
?(B) the balance sheet date to determine the impairment of loans,
according to the amount should be written down, debit, "Impairment
of Assets" and credit "loan loss reserve" account. At the
same time, should be the subject (principal, interest adjusted) balance
to the subjects (impaired), debit the subjects (impaired), credited to
the subject (principal, interest adjustment).
?The balance sheet date, the cost should be amortized loans and real
interest rates, interest income calculated and determined, debit
"loan loss provisions" shall be credited to "interest
income" subject. Meanwhile, the contract will be the principal and
interest rate contracts to determine the amount of interest payable for
the registration sheet.
Recovery of impaired loans, the amount actually received shall debit
"deposits", "deposit central bank money", etc,
according to loan loss provisions related to the balance, debit
"loan loss reserve" account, the balance of the related loans
credited to the subjects (impaired), according to the difference between
the credit, "Impairment of assets" subject.
For really can not recover the loan, according to management authority,
upon approval to be written off as bad debt, debit "loan loss
provisions" shall be credited to the subjects (impaired). According
to management, resale rights, upon approval sheet for the interest
receivable and reduce the balance-sheet "for the interest
receivable" account value.
And write-offs of loans identified and later recovered, according to the
original reseller of impaired loans, debit the subjects (impaired),
credited to "loan loss reserve" account. According to the
amount actually received, debit "deposits", "deposit
central bank money", etc, under the resale of the impaired loan
balance, credited the subjects (impaired), according to the difference
between the credit "Impairment of assets" subject.
4, the end of this course is a debit balance, reflecting the company has
not yet recovered by the granting of the amortized cost of loans.
Loans - the basic requirements
1. Borrowers: the age of 18 years to 60 years of age with full civil
capacity of the Chinese citizens.
2. Loan amount: CCB approved borrowers pledge, mortgage, third-party
guarantee or credit with certain qualifications, the bank approved the
borrower's pledge corresponding amount, mortgage amount, guarantee amount
or credit limit. Pledge amount does not exceed the borrower's pledge to
provide the right credentials for 90% of face value; mortgage amount does
not exceed the value of collateral assessment 70%; credit line and
guarantee amount under the borrower's credit rating to determine.
3. Loan period: valid for a maximum mortgage limit of 5 years; pledge
amount on the expiry of due date of not more than the right to pledge a
maximum of not more than 5 years; amount of credit and guarantee valid
for 2 years. Amount of the loan contract is valid from the date of entry
into force. Pledge of the borrower to apply the amount, mortgage amount,
guarantee amount, or two or more lines of credit in the amount, the
Construction Bank in accordance with the shortest duration of the
approved amount of amount of loans to borrowers the amount for personal
consumption period. Period after the closing credits are not allowed to
expend the remaining amount.
4. Lending rate: in accordance with the provisions of the bank's loan
5. Secured by: CCB approved by mortgage, pledge, third-party guarantee or
6. The need for application materials:
(1) the borrower's original and valid ID copy;
(2) local permanent residence or a valid proof of residency status
(3) The ability of borrowers to repay loans that material. If the county
where the borrower to prove income, borrowers pay tax bills, insurance
(4) the borrower received the pledge, mortgage amount required for the
right to pledge, mortgage inventories and ownership documents, ownership
of persons and property owner agreed to pledge, mortgage of the written
(5) the amount the borrower was required to ensure that the guarantor
agrees to provide written guarantees.
(6) proof of the guarantor's credit.
(7) Social accepted assessment issued by the department's assessment of
(8) China Construction Bank and other documents and information provided
Loans - Methods
1. Go through channels: Construction start-up through the branches of
personal car loans personal car loan business process, in some cities,
China Construction Bank, established professional automotive financial
services center handled personal car loans, personal loans are car loans
center accepted professional organizations.
2. Apply process:
¢Ù accepted. Construction workers handling introduced to customers the
amount of loans for personal consumption conditions, duration, interest
rates, guarantees, payment methods, handling procedures, and breach of
contract management and the need for borrowers to bear the cost, etc., on
the borrower's loan conditions preliminary eligibility and application
¢Ú investigation. Investigators according to relevant regulations, to
take reasonable means to the customer to submit materials to investigate
the authenticity of the content, rate the applicant's repayment capacity
and repayment will.
¢Û approval. Approval by the right person according to the customer's
credit rating, mortgage situation, pledge the situation and guarantee
that the final approval of the customer to determine the amount and the
amount of integrated credit period.
¢Ü release. In the implementation of the loan conditions. Customer demand
in accordance with paragraph at any time apply to the bank the amount
¢Ý post-loan management. The loan shall be in accordance with the
relevant provisions of loan management and guarantee the borrower's
income, the use of loans, credit (quality) value of the objects change
custody status and performance of the supervision and inspection,
inspection results should be recorded in writing and on file. Way to
implement security or credit should guarantor or the borrower's ability
to monitor credit and compensation, and require the borrower and the
guarantor to provide assistance.
¢Þ loan recovery. The loan contract, according to both lenders and
borrowers in the repayment plan, repayment date, the account from the
agreed repayment deducted. Loan borrowers can also go to ICBC business
office to repay the loan.
Loans - types
First, mortgage loans
1, collateral: the borrower himself or a third person's own property as
housing, already have "real estate license."
2, mortgage process:
(1) holding title deed to the property the premises of the Housing
Authority asked the county where the property can apply for registration
of real estate mortgages;
(2) can be handled by the exact answer to the "property card"
and related personal information to the CCB management agency Personal
Comprehensive Consumer Loan Mortgage loan application process;
(3) CCB property assessment agency designated to provide the applicant's
own assessment of property and real estate assessment report submitted by
assessing the value of 3 ¡ë to charge a fee;
(4) China Construction Bank to help applicants apply for property
insurance, loan approval procedures and the appropriate procedures, the
maximum credit line of not more than 70% of assessed value, and the
examination and approval of contracts and mortgage contracts loans;
(5) real estate license holders borrower, loan contract to the county
where the premises of the bureau in real estate mortgage registration,
authority costs borne by the borrower;
(6) mortgage registration completed, the CCB before lending to borrowers
in the personal savings account.
Second, collateral loans
1, pledge of property: the borrower himself or a third person the rights
of the legitimate holders of certificates, including:
(1) securities. Including the Beijing Branch of the agency issuing
financial bonds, AAA grade corporate bonds, government bonds (laws and
regulations can not be other than a pledge);
(2) Beijing Branch of the agency issuing the certificated treasury bonds
(issued after 1999);
(3) Beijing Branch of the individual issued the foreign currency deposit
receipts and periodic one passbook;
(4) Beijing branch approval of other legal, valid certificate authority.
2, pledge process:
(1) certificate holders the right to a personal management agency for an
integrated consumer loan collateral loans;
(2) verify the pledge of documents of title, and eligible for pledge
(3) CCB receipt of documents of title pledge to carry out procedures for
loan approval, loan amount no more than the right to pledge 90% of
voucher denominations and with the approval of a loan applicant agreed to
sign the loan contract and the pledge contract;
(4) China Construction Bank loans to borrowers personal savings account.
Third, combination loans
Borrowers can draw the right mortgage or pledge certificate for
individuals with a comprehensive consumer loans, lines of credit secured
by two methods allow the cumulative amount of loans, loan process ibid.
Fourth, credit
1, borrowers apply for individual credit in my comprehensive consumer
loans, the CCB to determine the creditworthiness of the borrower under
the credit line of up to 600,000 yuan.
2, loan applicants to provide information (are able to provide the
following information is provided);
(1) valid ID card, residence booklet, military officer.
(2) where the certificate of credit investigation letter, including
vocational nature, staff stability.
(3) Personal Consolidated income proof.
(4) individual work permits and payroll records or pay on behalf of the
(5) University diploma, professional title certificate.
(6) real estate license or a rental contract that the housing situation.
(7) marital status and children cases.
(8) The recent water, electricity, gas, telephone charges and any proof
of a bill or neighborhood.
(9) with CCB-related conditions and other personal loans that business.
(10) Personal Dragon card and the last six months of the bill.
(11) other financial assets that (such as stocks Jiaoge Dan, savings,
personal insurance, funds, bonds, etc.)
(12) according to the customer the actual situation, the need for other
3, client manager according to the borrowers credit ratings to determine
credit lines and the corresponding period for loan approval procedures,
loan amount does not exceed the corresponding amount of the credit rating
to allow issued, issued with the approval of the applicant agreed to sign
the loan contract.
4, China Construction Bank loans to borrowers personal savings account.
Loans - Bank loans (BankLoans)
What is a bank loan
Bank loans by banks in accordance with national policies to a certain
degree of interest rates to finance loans to those in need of funds and
the return of an agreed period of economic behavior.
Classification of bank loans
According to different criteria for the classification, bank loans with a
variety of different types. Such as:
Different terms of payment can be divided into short-term loans, medium-
term loans and long-term loans;
Different ways according to repay can be divided into demand loans, term
loans and overdrafts;

Different purposes or objects by loans can be divided into commercial and
industrial loans, agricultural loans, consumer loans, loans, securities

Loan guarantees under different conditions, can be divided into bills
discounted loans, mortgage notes, commodities mortgage loans, credit
Different sizes according to loan amount can be divided into retail and
wholesale loans and loans;

Different ways according to the agreed interest rate, can be divided into
fixed-rate loans and floating rate loans, and so on.

Moreover, in different countries and different development stages of a
country, divided up according to various standard types of loans also
have differences. If the United States, mainly ordinary business loans
loan limit, working capital loans, lines of credit commitments, such as
several types of loans, while the British commercial and industrial loans
to use more discounting of bills, credit accounts and overdraft accounts
in the form.
Loans - Anglo-American countries, types of bank loans
(1) General lending limit and the backup loan commitments. General
lending limit is a kind of informal agreement bound form of loans.
Corporate demand for funds is based on the characteristics of seasonal
and regular, with the Bank entered into an informal agreement, agreed to
a bank within the specified period the maximum amount of business loans,
and credit lines in this period, the Company may at any time to obtain
bank loans. Enterprises must apply for credit lines to explain the recent
financial situation of banks, banks and credit under the company's own
operational requirements and the implementation of the agreement to
decide whether credit. Standby loan commitment is more formal and legally
binding contractual agreement, the loans. Enterprise and Bank entered
into a formal loan agreement, banks are committed within a specified
period and limit loans to businesses and to require the enterprises to
pay commitment fees to banks.
(2) working capital loans and project loans. Working capital loans is
based on the enterprise product cycle is long, more reserves of raw
materials, capital and slow return of the characteristics of the progress
to determine the term of the loan sales and the amount of the loan.
Project loans are high risk and high cost of large construction projects
targeted loans, which is characterized by large amounts of high-risk,
high interest rates, with the rationality and feasibility of the project
as the basis for determining loan or loan debt recovery cable for the
project, rather than companies and enterprises. For large projects,
usually by the combination of a number of banks in order to form a
syndicate of banks or syndicated loans, in order to diversify risk.
(3) bill discount. Compared with the general loan discount notes, which
characterized in:

¢Ù third parties. Bills discounted notes for the object is man-made
object rather than the borrower;

¢Ú line of credit. Discounted amount of the loan only with the
denomination bills, the discount rate and the duration of the remaining
bills, without borrowing, the borrower financial condition and other

¢Û funding modalities and duration of reflux. Bills discounted bills can
be handled through the rediscount rediscount and advance recovery of
¢Ü risks and benefits. Bills discounted with more reliable assurance of
liquidity and risk spreading mechanism, but lower than the general loan
(4) credit accounts and overdraft accounts. Credit account is mainly used
to arrange bank loans installments a convenient form. Overdraft account
is to open a current account in the bank to provide loans to customers
the convenience of the form.
Loans - the type of bank loans
June 1996 issued by the Bank of China, "General Rules on Loans"
in the loan are as follows:
(1) self-loans, entrusted loans and certain loans. Self-loans, the lender
is a legitimate way of raising funds own the loans, the risk borne by the
borrower by the lender to recover the principal and interest. Entrusted
loans, is by government departments, enterprises, institutions and
individual clients to fund the loan (the trustee) to determine the loan
according to the principal object, purpose, amount, term, interest rates
paid on behalf of, monitoring the use and to help recover the loan. The
lender (the trustee) only charge a fee, do not take credit risk. Specific
credit means loans by the State Council for approval and possible losses
take appropriate remedial measures, instructed state-owned commercial
bank loans.
(2) short-term loans, medium-term loans and long-term loans. Short-term
loans, is the term of the loan within a year (including one year) loans.
Medium-term loans, is the term of the loan in one year (excluding one
year) to five (with five years) loans. Long-term loans, is the term of
the loan in five years (excluding five years) than loans.
(3) credit loans, secured loans and bills discounted. Credit refers to
the borrower's credit loans. Secured loans, is guaranteed loan, mortgage,
pledge loans. Guaranteed loans are defined as the "Guarantee Law of
the PRC" means the guarantee provided by a third party committed to
the borrower can not repay loans, according to the agreement or take
responsibility for general joint responsibility to ensure the loans.
Mortgage loans are defined as the "Guarantee Law of the PRC"
means the provisions of the mortgage to a borrower or a third person's
property as collateral for loans. Pledge loans are defined as the
"Guarantee Law of the PRC" means the provisions of the pledge
by the borrower or a third person's personal property or property rights
as the quality of the loans. Bills discounted, is the lender to the
borrower to buy commercial paper outstanding payments of the loan.
Loans - Bank loans interest rate policy the four provinces
Four provincial bank loan interest rate policy: the period should be
reasonable plans to use paragraph length
Strategy 1: shop around carefully choose bank
At present, banks highly competitive, each in order to win more market
share, will be in accordance with state regulations loan rate loan rate
range adjustment. Therefore, demand for funds in the loan, in order to
"shop around" to choose a low interest rate bank loans.
For example, the same loans to 100,000 yuan, loan period of one year, an
implementation of the benchmark interest rate, an implementation of the
floating interest rate of 20%, if you choose the latter, 1,000 yuan a
year would pay an extra interest.
Strategy 2: select the right plan a reasonable period of
Funding requirements for those who need to use models of the time there
are long, short. Therefore, in order to avoid bogus sales interest, bank
loans, it should be a reasonable plan period with a section length.
Similarly, loans, credit grade choose the longer term interest rates will
be higher. Select grade that the longer the term of the loan, even if the
loan will be interest on the same day different.
For example, the current short-term interest rates six months and one
year is divided into two grades, and provides for the implementation term
of the loan within six months, six months on the grade of interest rates,
more than half a year to be performed less than one year rate of grade.
If the funding needs of those loans will be 7 months, although more than
half a year only 1 month of time, but in accordance with the provisions
of the current interest-bearing loans, can only run one-year lending
rate, which virtually increases the demand for those funds interest on
the loan burden.
Strategy 3: understand the preferred way of spread
At present, the banking sector in the way business loans, mainly credit,
guarantee, pledge, mortgage, and several forms. Correspondingly, the bank
lending interest rates in the implementation of the floating interest
rate will be different. As long as the same application period, then the
same amount of the loan, if you choose the wrong loan could take on more
loans will be interest, so that my money or more in vain.
Therefore, demand for funds in the bank loan to pay attention and
understand the different loans under the interest rate spread is very
important. For example, now banks with the lowest interest rate loans are
loans for bill discounting and pledging that if their conditions allow,
that the form of loans through these two certainly appropriate.
Strategy 4: Loan Agreement entered into caution
Now, a lot of demand for funds in the bank loan agreement when it is very
random. In fact, this unrestrained behavior shows a lack of good
financial management in their consciousness, often it will pay an extra
interest in the loans, causing an artificial "high interest
rates." Because some banks will make loan capital requirements of
interest in the virtually bogus sales. For example, the retention of
withholding loans and deposits interest loans.
The so-called retention deposits that demand for funds by lending to
banks to obtain loans, to bank from the loan principal in the retention
part of the deposit to the bank account to restrict the demand for funds
in the loans to repay principal and interest when due on schedule.
However, capital requirements are concerned, the loan principal to be
discounted to pay the interest on the mean. The so-called withholding
interest loans that some banks to ensure that the loan interest on time
to return, in the loan from the lender when the loan principal in the
pre-deducted interest on all loans. As the demand for funds in this way
those who make less money available for loans, has increased the demand
for funds objectively's financing costs.
New commercial bank lending rates
Project annual interest rate (%)
Project interest rate%
First, short-term loans
Six months (inclusive) 4.86
Six months to one year (inclusive) 5.31
Second, long-term loans
One to three years (including) 5.40
Three to five years (including) 5.76
More than five years 5.94
Third, the discount to rediscount rate plus point for the lower limit

Shared By: