1. Overview

1.1 Definition

Individual house mortgage loan, refers to various branches of Jiutai Rural Commercial Bank use the credit fund to issue to the borrowers of taking private house in the local loan bank as the loan of mortgage guarantee. Private house refers to the house, land managing department already issued effective certificate of the house ownership or the house property right has been determined, could circulate in the two-class market of house trade, the owner of the house has complete right to handle the individual house (including villa),commercial house.

1.2 Object

The object of individual house mortgage loan is full of 18 years old, the natural person of having complete capability of civil product.

1.3 Conditions

The borrower of applying for individual house mortgage loan must possess the following conditions at the same time:

1. Having legal and effective identity certificate, having the local registered permanent residence or effective residence proof;

2. Having steady, legal income source, having the capability of repaying loan capital and interest on time;

3. Credit is better, no illegal and undisciplined conduct, no bad record; Bad record refers to based on the inquiring in the individual credit information data base of the People’s Bank of China (that is credit reference system of the People’s Bank), and the other individual credit data base approved to set up by credit reference main managing department, really because of spite reason of the borrower to cause the following bank credit information record:

(1) In installation repayment to default loan capital or interest for continuous 3 terms (including) or accumulative total above 6 terms (including);

(2) In one time repaying when expiring to default loan capital and interest time above 90 days (including).

If after investigation, the customer is really not because of spite reason to cause debt, could have adjustment by the credit operation department to consider the concrete situations and have explanation in the investigation report;

4. The property right of the mortgage house is clear, could come into the house market for circulation, the house age should not exceeds 20 years in principle, and not in the range of removing and risk house of not allowed to use after verification, not exist the dispute of rights and interests;

5. The borrower could provide the effective guarantee approved by our bank;

6. The other conditions regulated by the loan bank.

1.4 Amount

The highest loan limit is 60% of evaluation value of the mortgage goods, concrete limit should be based on the repaying capability and credit record of the borrower to determine.

1.5 Time limit

Individual mortgage loan is mainly a short time of 1 year period, the longest period is not over 3 years; No matter take the commercial buildings or residence house as mortgage, the mortgage limit could not exceed the left using period of the mortgage house.

1.6 Loan guarantee

The borrower takes self-owned house or other’s house as mortgage, the house of mortgage must be handled mortgage registration procedure at property department, or could be handled the sealing up procedure. Mortgage house acts as the anti-guarantee mortgage goods of the guarantee company, the guarantee company provides guarantee intention letter and issuing fund notice to our bank, and signs warranty contract with our bank.

1.7 Interest rate

The loan is carried out floating interest rate, floating ratio is not lower than 30%, standard interest rate will be adjusted with the adjustment of the country, the floating ratio is no changing. Standard interest rate is the same term and same grade loan interest rate issued and performed by the People’s Bank of China.

1.8 Kinds

Business of individual mortgage loan is including: business of individual commercial buildings mortgage loan and individual residence mortgage loan, the loan used for consuming will be put into individual consuming loan for business accounting,; the loan used for the production operation of the borrower will be put into individual operation loan for business accounting.

1.9 Intended use

Individual house mortgage loan is used for individual consuming, production operation and so on; The loan is not allowed to use for equity capital investment; not allowed to use the loan to engage in investment of stock, future goods, financial derivative products; not allowed to use to the investment of legal enterprise and other risky investments activities, not allowed to use the loan to the field and use of production, operation forbidden by the nation; the loan bank could not issue the loan of no appointed use.

2 Operating procedure

2.1 Acceptance

The borrower applies for individual house mortgage loan, should put forward written application to the loan bank and hand in the following papers:

1. Loan application letter;

2. Legal, effective, original identity card and copies, if the borrower has married, need to provide martial certificate, original effective identity card and copies of spouse, if the borrower has not married or divorced, needs to hand in the original single proof or divorce certificate (court written judgment) and copies;

3. Proof of steady salary income or proof papers of other income including (detail account of business income, receipt of tax payment, deposit prove of public accumulation fund, renting out prove of self-owned house, operation income prove and so on, takes the family income for repaying loan, should also provide the identity of other family members and income prove papers);

4. Prove document of intended use of loan (including but not limit buying and selling contract, purchasing contract, agreement etc.);

5. House property right certificate and land use certificate (commercial buildings provide) used for mortgage by the borrower;

6. House of already renting out needs to provide promising file of tenant;

7. Other certificate documents and papers demanded to provide by the loan bank.

2.2 Investigation

Investigation before loan is for all the documents provided by the borrower, authenticity of the papers, legality, integrity，feasibility and the conduct, credit, repaying capability, practicable situation of guarantee means and so on of the borrower  to have investigation and evaluation.

1. Investigate whether the papers provided by the borrower are true;

2. Investigate whether intended use of loan is true;

3. Investigate whether it is accordance between the actual situation and loan application letter of the borrower;

4. Investigate credit and income status of borrower, whether could repay the loan capital and interest on time;

5. Having investigation to mortgage goods on the spot, check the ownership of mortgage goods whether is true, whether has already set up guarantee, could not only take the evaluation report provided by the evaluation department as the criterion;

6. Other situations needed to investigate.

Before loan the investigator must at least has an interview 1 time with the loan applicant directly, interview could be carried out at the same time of accepting the loan application, and form loan interview record, interview record should be signed by investigator and borrower face to face before loan and on file as the base of loan examination and approving.

2.3 Examine, examine and approve  

1. Compliance examination

Reference to the concerned regulations of examination of the handbook of the article two of chapter two of Basic Procedure of Credit Business to carry out.

2. Examine and approve

Reference to the concerned regulations of examining and approving of the handbook of the article two of chapter two of Basic Procedure of Credit Business to carry out.

2.4 Issue

1. Sign contract

To the loan application examined and approved and agreed, the operator should inform borrower and guarantor, to sign loan contract and guarantee contract. The text of loan contract should use uniformly Individual Operation Loan Contract of Jiutai Rural Commercial Bank or Individual Consuming Loan Contract of Jiutai Rural Commercial Bank, if has special demand to the single loan, it could be appointed in the other appointed items of the contract.

2. Registration

To take the house as mortgage, must handle mortgage registration procedure; to take the house as anti-guarantee goods, guarantee company should handle sealing-up or registration procedure.

3. Insurance

Commercial building mortgage should handle property insurance in principle, insurance period could not be short of the loan period, during mortgage borrower is not allowed to cut off or cancel the insurance.

After the loan conditions are practicable, the handling bank could handle the issuing and payment of the loan.

2.5 Management after loan

Reference to the regulations of the handbook of article 3 of chapter 1 of Inspection after Loan to handle.

After issuing of loan, the handling bank must enhance the management to individual house mortgage loan, to have at least one time inspection after loan every season, to ensure the loan recovering on time; individual house mortgage loan is not allowed to extend the time limit.

The content of inspection after loan is including the basic situations of borrower, credit status, the persistence status of mortgage goods, guarantee capability status of guarantee side and so on; mode of inspection is including telephone interview, face to face interview, inspection on the spot, inquiring related information system or getting customer’s information from the third side and so on; to the important risk matter discovered during inspection, the borrower has clearly the situation of breaking contract or the weakness of repaying capability, should report and take necessary risk prevention measures.

2.6 Archives management

The loaner should enhance the archives management of individual house mortgage loan, to have inspection on the archives custody situation, to prevent the damage loss of the archives, specially should inspect the integrity of loan contract, guarantee contract, loan papers provided by the borrowers, mortgage procedures and other important law documents.