1 Summarize

1.1 Definition

Loan of individual house decoration is a kind of RMB loan issued by Jiutai Rural Commercial Bank to individual customers for decorating self-used residence.

1.2 Object

The object of individual residence decoration loan is full of 18 years old, natural person of having full capacity for civil conduct.

1.3 Conditions

The borrower must possess the following conditions at the same time:

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

2. Credit is better, having steady economic income, possessing capability of repaying loan capital and interest on time;

3. Could provide guarantee mode approved by Jiutai Rural Commercial Bank;

4. Could provide family Decoration Engineering Contract signed with decoration enterprise, or Contract of Purchasing Family Decoration Materials, Contract of Purchasing kitchen and Bath Device signed with the supplier of decoration materials or provides budget statement of family decoration;

5. The other conditions regulated by Jiutai Rural Commercial Bank.

1.4 Intended use

Residence decoration loan could be used to pay the project funds of house decoration and maintenance engineering, funds of related decoration materials and kitchen and bath device and so on.

1.5 Amount

The highest individual house decoration loan is not exceeded RMB 1 million Yuan (including 1 million Yuan). Among it: to take mortgage mode as guarantee, loan limit is not exceeded 60% of the value of mortgage goods; to take pledge mode as guarantee, the loan limit is not exceeded 90% of the value of pledge goods.

1.6 Period

The longest period of individual house decoration loan is not over 3 years (including 3 years). Among it, the loan of decoration house is not self-living house, the longest loan period is not over 2 years (including 2 years).

1.7 Interest rate

The interest rate of Individual residence decoration loan is according to the same term interest rate regulated by the People’s Bank of China to carry out, and could be come-up in the range regulated by Jiutai Rural Commercial Bank.

 

2 Operation procedures

2.1 Accept

Individual credit operation department of the various handling banks are the acceptance department of individual house decoration loan application, and appoint operator to accept business.

The operator demands the borrower to fill Individual Residence Decoration Loan Application Letter, to put forward official loan application to the handling bank, at the same time demands the borrower to provide the following papers:

1. Effective, original identity card and copies of the borrower, as well as the local effective residence certificate;

2. Related income proof papers of the borrower, including salary income proof, receipt of tax payment, deposit prove of public accumulation fund, renting out prove of self-used 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;

3. Decoration Contract, Contract of Purchasing Family Decoration Materials, Contract of Purchasing kitchen and Bath Device signed with the decoration enterprise, dealer, and so on;

4. Copies of business license and qualification certificate of the decoration enterprise;

5. The proves of mortgage goods, pledge right inventory and agreed with mortgage, pledge by the person of having right of disposition, mortgage goods also needs to present ownership right or right of use certificate, evaluation, insurance document, pledge right also needs to provide document of title, document of agreed with guarantee of the guarantor. To take family property as providing guarantee, spouse should issue the written papers of agreeing with guarantee;

6. Deposit proof of self-owned fund;

7. The other documents the handling bank considered as needed to provide.

2.2 Investigation

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

2.2.1 Investigation before loan

The loan takes the mode of investigation on spot, content including:

1. Check whether the intended use of loan is true;

2. Check whether the papers provided by the borrower are complete;

3. Check whether the original papers provided by the borrower  are true and effective, whether the original is coincidence with the copies, whether it is coincidence between the papers;

4. Check the credit and income status of borrower, whether could repaying the loan capital and interest on time, whether the guarantor has guarantee capability;

5. Check whether the ownership right of mortgage goods or pledge goods belongs to mortgager or pledgor, whether already set up mortgage as well as other situations；

6. Whether the other matters listed in application letter are true.

2.2.2 Form written investigation report or investigation papers

1. After investigation by operator, to preparing to provide loan, should consider the following factors comprehensively, reasonably determine the loan limit, loan period, loan interest rate, guarantee mode and repaying mode and other matters:

(1) The credit evaluation grade situation of the loan bank to the borrower;

(2) Loan guarantee situation.

2. After finished investigation by the loan operator, needs to write investigation report，put forward the loan opinion; the operator is in charge of the above papers, authenticity of the data, legality, validity, veracity.

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

The credit operator is based on the final examining and approving opinion of the loan, consults the loan conditions with the borrower, after the borrower agrees, signs Individual Consuming Loan Contract and Guarantee Contract, handle mortgage (pledge) registration, insurance, loan payment and other procedure.

2.4.1 Sign contract and handle guarantee procedure

1. Sign contract

To fill in loan and guarantee contract，signature and other concrete demand, please refers to the concerned regulations of Credit and Loan Legal Instrument.

2. Registration

To take other property as mortgage or pledge, registration method refers to the content of related mortgage, pledge registration of Credit and Loan Guarantee.

3. Insurance

To take the decoration house as set-up mortgage or pledge, the handling bank should ask the borrower to handle house property and other insurance in the insurance company appointed by Jiutai Rural Commercial Bank, and must clear in the guarantee slip the first beneficiary is loan handling bank. Insurance period could not be short of the loan period.

During mortgage the borrower is not allowed to cut off and cancel the insurance at any reason, during insurance, if it happens the damage out of the range of insurance responsibility, the borrower is in charge of all the responsibilities.

To take other property to set-up as mortgage or pledge, insurance method refers to the related content about mortgage goods, pledge goods insurance of Credit and Loan Guarantee.

4. The costs of evaluation, insurance, registration, notarization of mortgage goods, pledge right will be all undertaken by the borrower.

2.4.2 Drawings

Precondition is that the mortgage goods have been handled registration and insurance, pledge right and guarantee slip have been removed to the handling bank for keeping.

2.5 Inspection

2.5.1 Inspection time limit

After the loan issued, the handling bank should be according to the related regulations of loan management to have supervisory control to the situation of repaying capital and interest on time to the individual borrower. To having not repaying the loan on time, the handling bank should inform the borrower to return the expiring loan; exceeding the time limit over 1 month, the handling bank should realize and analyze the exceeding reason, and take the measures of telephone collection, written collection, visiting collection, informing guarantee side, preparing to handle mortgage goods or pledge goods and so on.

2.5.2 Inspection content

1. Inspection management of loan situation:

(1) Whether the borrower is according to the contract appointment to use the loan and repaying the loan capital and interest on time;

(2)Whether the borrower’s qualification and repaying capability have happened the important changes;

(3) Keeping and value changing situation of loan mortgage goods or pledge goods;

(4) The changing situation of guarantee qualification and guarantee capability of the guarantor.

2. Inspection management of replacing keeping guarantee goods:

The handling bank should properly keep all kinds of original of the certificate of guarantee goods ownership, managing department should have inspections to the guarantee goods non scheduled.

2.6 Recover

2.6.1 Repaying mode

Individual residence decoration loan carries out repaying method of same amount of capital and interest, same amount of principle capital and other appointed repaying mode. Repaying cycle could be calculated by month or by season. Among them, the loan period is within 1 year (including 1 year), also could be carried out repaying capital and interest in one time when expiring, interest is cleared along with the capital and other repaying mode.

2.6.2 Recovering ahead of time

1. The borrower repays all the loan ahead of time actively 

After agreed by the handling bank, the borrower could repay the loan ahead of time actively. The staff of credit and loan demands the borrower should apply for repaying ahead of time before 10 days of preparing to repay.

2. Demand the borrower to repay the loan ahead of time

According to the appointment of contract, during loan, the borrower has one of the following situations, the handling bank should demand the customer to repay the loan ahead of time:

(1) Refuse to accept the inspection of the handling bank after loan;

(2)Providing document, papers are not true, refused to correct, gravity of circumstance;

(3) The warrantor breaks the guaranty contract or losses to undertaking the capability of joint guarantee responsibility, the mortgage goods because of damage are not efficient to pay off the loan capital and interest, pledge goods are reduce clearly and reflect realizing of pledge right, but the borrower is not according to the demand to practice new guaranty or new mortgage (pledge);

(4) The borrower dies during the loan, pronounces missing, or having no inheritor, legatee after losing the capability for civil conduct, or legal inheritor, legatee refuse to carry out the loan contract already signed by the borrower.

2.6.3 Postpone

The individual residence decoration loan is not allowed to be handled the postponed period.

2.7Bad loan administration

Reference to the regulations of the article 3 of chapter 2 of the handbook of Badness Credit Assets Operation Management to handle.

2.8 Archives and Papers Management

Refers to the regulations of the article 3 of chapter 3 of the handbook of Credit Business Archives Management to handle.