Auto loans refer to Renminbi consumer loans granted to individuals or legal persons to finance the purchases of cars.

Prospective Borrowers

•     Individuals: with full capacity for civil conduct; with stable occupation and capacity of debt service, and good credit standing; able to provide valid property for mortgage or pledge, or having individual or institutional guarantor with full repayment capacity by subrogation; able to afford the down payment for the car purchase.

•     Legal persons: with legal person status and loan repayment capacity; having proceeds for the down payment for the car purchase that are not less than the prescribed amount placed at the designated bank; having guarantee approved by the lender, etc.

Length of Maturity

•     The longest period not exceeding five years.

Lending Currency

•     Limited to Renminbi for now.

Credit Limit

•     The down payment being 20% of the car price, the amount of borrowing may not exceed 80% of the car price;

Lending Rate

•     It is adopted according to the corresponding lending rate announced by the People's Bank of China.

Loan Application

Materials required in a car loan application:

•     For an individual: an application for borrowing; valid credentials; certificate of occupation and income, certificate of the debt service ability approved by the creditor; car purchase contract or agreement signed with the designated dealers; documents of certification required for guarantee.

•     For a legal person: an application for borrowing, legal person license, certificate of legal person code, and documents of certification of the legal representative, financial statements for the previous year and recent period, borrowing card or borrowing permit granted by the People's Bank of China, car purchase contract or agreement signed with the designated dealer; and all documents of certification required in the guarantee.

Loan Repayment

•     Payment of equal amount of principal or of principal and interest by a monthly installments, the borrower and the lender may choose a repayment pattern by consultation. The borrower shall deposit prior to monthly repayment date provided for in the loan contract sufficient monthly installment in its account so that the bank can directly deduct the repayment of the loan principal and interest. With the consent of the lender, the borrower is permitted to effect an early payment in part or in full.