Loan process

1. Loan applications and approvals.

(1) loan application. Borrower needs a loan shall be submitted to the Central Bank or other Bank agency of direct applications, applicants should include the amount of the loan, borrowing, repayment and repayment as well as content.

(2) the credit assessment. Qualities of a leader should be based on the borrower by the lender, economic strength, capital structure, performance, economic and development prospects, evaluation of projects, evaluation of the borrower's credit rating.

(3) investigation and approval of loans. After the lender accepts the application for borrowers should be on the borrower's credit rating and borrowing of legality, safety, effectiveness and other investigations to verify the situation of mortgage, pledge, surety, determination of risk of loan. In these investigations, loans under separation, grading and approval of loan management system, to verify information provided by investigators, assessment, repeated loan risk, review comments, according to prescribed procedures and permission to approve loan applications.

2. Fulfilment of the contract.

(1) the loan contract. All lenders should sign a loan contract in their loan books, the contract shall at least include loan type, loan application, loan amount, interest rate, repayment terms, repayment options, basic content, should also be set out in detail the borrower and the borrower's rights and obligations, breach of contract and the parties consider it necessary to other matters as agreed.

(2) the contract of guarantee. Guaranteed loans should be the guarantor and lender sign a guaranteed contract, or surety in the loan contract stated and the lender agreed warranty, stamped with the seal of the guarantor (personal seal), and authorized by the sponsor or its legal representative, signed the names. Mortgages, mortgage loans should be by the mortgagor, the pledgor and lender sign a mortgage or pledge contract, are required by law to register and shall not omit the registration process.

(3) lending operations. The lender shall, as agreed in the loan contract, and according to grant loans on time. No matter for what reason, lenders are not lending according to the contract schedule, it shall pay breach; borrower not complying with the conditions of use stipulated in the contract of loan, it shall pay breach of.

(4) credit check and after recovery of the loans. Financial institutions in issuing loans, borrowers should be the implementation of a loan contract and the management to track and check the status of the borrower. At the expiry of the term, timely recovery of principal and interest on the loan. The borrower shall return in full and on time in accordance with the loan contract the loan principal and interest.

3. The supervision of bad loans.

(1) the 34th article of the General principles of loan notes that sluggish refers to bad loans and bad loans, loans and overdue loans. Which bad loan is refers to by Treasury about provides confirmed for cannot reimbursement, and as bad of loan; sluggish loan is refers to by Treasury about provides, late (containing extension Hou due) over 2 years still not returned of loan, or is not late or late discontent provides years but production business has terminated, and project has stopped of loan (not containing bad loan); late loan is refers to borrowing contract agreed due (containing extension Hou due) not returned of loan (not containing sluggish loan and bad loan),.

(2) loan quality. According to the Basel agreement on loan classification levels classification of credit assets and the rules of law stipulates that credit assets into normal, loss of interest, secondary, suspicious and 5 categories, three levels of secondary, after suspicious assets and losses to non-performing assets.

(3) registration of nonperforming loans. Bad loans are provided by accounting, credit Department data, the Audit Department is responsible for audit and in accordance with the regulations found, the lender shall quarterly report the bad loans of, submitted to higher authorities at the same time, submitted to the CBRC local branches of the people's Bank.

(4) the assessment of bad loans. Financial institutions ' bad loans, sluggish loans, overdue loans must not exceed prescribed by the China Banking Regulatory Commission and the Central Bank, financial institutions should their branches issued assessment of bad loans, sluggish loans and overdue loans of specific indicators, to urge departments to prevent loan risks.

(5) the collection of bad loans and bad loan write-offs. The credit departments of financial institutions is responsible for the collection of bad loans and audit departments are responsible for the inspection of the collection. Financial institutions must, in accordance with the relevant financial regulations the provisions of doubtful, and in accordance with the conditions and procedures for write-off bad loans bad reverse. Without approval of the State Council, the financial institution shall not be exempted from the obligations of the borrower to repay the loan without the approval of the State Council, no unit or individual is allowed to force lenders to forgive the obligations of the borrower to repay the loan.

4. Loans outstanding for the preservation and management.

(1) loans not because of the unilateral act of the borrower is destroyed. The borrower shall not be in violation of the law, through mergers, joint-stock transformation opportunities and methods to avoid bankruptcy or loan debt shall not take contract, lease or other methods to avoid loans that credit monitoring and repayment of the loan principal and interest obligations.

(2) credit restructuring. When the borrower's outstanding loan, the lender has the right to participate in mergers, bankruptcy or in the course of joint-stock system reform of the borrower's debt restructuring activities, participation in liquidation of the borrower or the creditors ' meeting, Center on how to require the borrower to repay the loan principal and interest, implementation of specific matters related to debt and enter into a written agreement.