Personal
loan pledged by certificates of deposit (CD) /treasury bonds
is a kind of business combining deposit and loan in which
the client gets a certain amount of Renminbi loan from the
bank by pledging undue certificate(s) of time deposit and
also repays the principal and interest accrued on schedule.
CDs used for hypothecation are limited to certificates of
time deposits issued by the savings outlets in the local
administrated area of the tier-one branches of and branches
under the Bank of China.
Prospective
Borrowers
Any
resident in China with full capacity for civil conduct,
holder of undue certificates of time deposit in local or
foreign currencies issued by the Bank of China or treasure
bonds, may apply for a personal loan pledged by CDs/treasure
bonds to the Bank. A borrower applying for personal loan
pledged by CDs/treasury bonds must also meet the following
conditions:
1. Being
a natural person with full capacity of civil conduct;
2. Having
local registered permanent residence or valid credentials;
3. Being
a holder of undue certificate(s) of time deposit or treasure
bonds issued by the Bank of China;
4. Other
conditions provided for by the lender.
Length
of Maturity
•
The length of maturity of a personal loan pledged by
CDs/treasury bonds may not exceed the due date of the
pledged CD . Besides, the longest maturity shall be one
year. If multiple certificates of personal deposit are
pledged, the length of maturity shall be set according to
the nearest due date. For automatic renewal certificates of
deposit, the length of maturity shall be set according to
the length of automatic renewal.
Lending
Rate
•
The interest rate for loans of the same grade
announced by the People's Bank of China applies to the
interest rate for personal loans pledged by CDs/treasury
bonds. The interest rate shall not float beyond the ceiling
rate specified by the People's Bank of China. If the length
of maturity is less than six months, the interest rate shall
be that for the six month loan. For repayment before
maturity date, the interest shall be calculated according to
the originally set interest rate and the actual number of
days of borrowing. In case the People's Bank of China
adjusts the interest rate, the contracted interest rate is
still adopted within the length of maturity.
Lending
Purpose
•
Borrowers may use the loans for purchases of houses,
cars and expensive consumer durables, for house
refurbishing, vacation and travel, education and other
consumer demands, as well as for working capital demand in
normal operations.
Credit
Limit
•
The minimum amount of a personal loan pledged by
CDs/treasury bonds is RMB1,000. The amount of the loan shall
in principle not exceed 90% of the face value of the pledged
CD (for deposits in foreign currencies, calculated in
Renminbi translated at the current day buying rate of
foreign exchange [bank note]). The maximum borrowing limit
of a single loan shall in principle not exceed RMB3,000,000.
Loan
Application
The
application for a personal loan pledged by CDs/treasury
bonds shall be supported by the following materials:
1. An
application for personal loan pledged by CDs/treasury bonds;
2. Presentation
of valid original credentials of the borrower,
pledgor(referring to I.D. card, residence booklet and other
valid residence certificates), and also provision of their
duplicates;
3. Valid
original certificate(s) of personal time deposit issued by
the Bank of China;
4. Signature
or password for the certificate(s) of deposit held by the
borrower;
5. Other
documents of certification or materials required by the
lender.
Loan
Repayment
•
The borrowers may use cash or deposits with the Bank of
China for debt service. With the consent of the lender, the
borrowers may repay the principal and interest of the loans
ahead of schedule.