1 Summarize

1.1 Definition

Individual automobile loan is a kind of loan issued by Jiutai Rural Commercial Bank to individual for purchasing automobile. Including the individual self- used automobile loan and individual commercial vehicle loan.

Self-used car is refers to the borrower applies for automobile loan to purchase, the automobile is not taken the profit as purpose; commercial vehicle refers to the borrower applies for automobile loan to purchase, the vehicle is taken the profit as purpose, including truck, large and medium passenger car，city taxi, and other business vehicle; second-hand vehicle refers to the vehicle from handled the automobile entering to the registering to the regulated scraping age limit one year ago and having ownership right changing and the vehicle to handle the transfer ownership procedures.

1.2 Principle

1. Individual automobile loan is carried out the principle of “loan guarantee, part of self-collected, special money for special use”.

2. Cooperation automobile dealer will be based on the intelligence grade, fund strength, operation status, market occupation rate and other comprehensive situations, to select and determine cooperation relation and sign Individual Automobile Cooperation Agreement.

1.3 Object

The object of individual automobile loan is full of 18 years old, natural person of having complete capability for civil conduct.

1.4 Conditions

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

1. Having the local registered permanent residence or effective residence identity certificate, having fixed and detail address;

2. Having steady legal income source or having individual legal property for enough repaying the loan capital and interest;

3. Individual credit is better;

4. Could pay the regulated first term of payment;

5. Guarantee measures approved by Jiutai Rural Commercial Bank;

6. If the purchasing vehicle is commercial vehicle, the loanee should possess legal operation qualification;

7. If the purchased vehicle is second-hand vehicle, also should possess:

(1) The trading vehicle is limited self- use only, and needs to be the second-hand trade of operation organ of getting legal operation right;

(2) Having real and effective second-hand automobile buying and selling contract, agreement or letter of intent

(3) The property right of the buying second-hand vehicle is clear, could be come into the market for circulation;

(4) The use age limit of the buying vehicle is not exceeded 5 years, and when apply for the loan, the vehicle is still in the valid period of annual check, transaction price and evaluation price is not lower than 50000 Yuan;

8. The other conditions demanded by Jiutai Rural Commercial Bank.

1.5 Amount

The purchasing vehicle of borrower is for self-use, and the loan limit is not exceeded 70% of the price of the purchasing vehicle; the purchasing vehicle is commercial vehicle, the loan limit is not exceeded 60% of the price of the purchasing vehicle; among it, the loan limit of commercial truck is not exceeded 50% of the price of the purchasing vehicle; the purchasing vehicle is second-hand vehicle, the loan limit is not exceeded 40% of the price of the purchasing vehicle.

For the new automobile to say, the automobile price refers to real transaction price (not including all kinds of additional tax, costs and insurance cost and so on) is lower with the published price of automobile manufacturer; for the second-hand refers to real transaction price( not including all kinds of additional tax, cost and insurance cost and so on) is lower with evaluation price of the loaner.

1.6 Period

The loan period of individual automobile loan is generally 2 years, the longest is not exceeded 3 years (including 3 years).

The purchasing vehicle is for self-use, the loan period (including postponed period) is not exceeded 3 years; the purchasing vehicle is for commercial use or the secondhand vehicle, the loan period (including postponed period) is not exceeded 2 years.

The automobile loan in accordance with the loan postponed period could be postponed one time, but the longest postponed period is not exceeded the half of the original loan period.

1.7 Guarantee

Apply for individual automobile loan, the borrower must provide certain guarantee measures, including pledge, taking the purchasing vehicle of loan as mortgage, house mortgage and so on. Do not accept the guarantee mode of only taking the vehicle as mortgage to apply for commercial loan.

1.8 Interest rate

Interest rate of individual automobile loan is according to the same term loan interest rate regulated by the People’s Bank of China to carry out, and could be floating in the regulated range.

Individual automobile is carried out repaying method of the same amount of capital and interest, 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, the interest is also paid completely when the capital is paid and other repaying modes.

2. Operation procedure

2.1 Acceptance

2.1.1 Acceptance department and staff

Individual credit operating division is the acceptance department of individual automobile loan application, and appoints the handling operator to accept business.

2.1.2 Acceptance procedure

1. Provide consultation

The handling staff should warmly and actively receive the borrower of applying for loan, introduce the individual automobile loan object, conditions, limit, period, interest rate, insurance (including guaranty insurance of installment payment), repaying mode, processing of breaking agreement, handling procedures to the borrower, as well as all kinds of costs the borrower needs to undertake and so on, explain the related regulations, clearly inform the borrower and guarantor should give assistance when having credit investigation.

2. Preliminary examination of qualification, condition

After the handling staff accepts the application intent of the borrower, to have preliminary examination to the borrower, and based on the following situations of the borrower, to determine the credit grade of the borrower carefully:

(1) Occupation, income, residence and stability of borrower;

(2) Repaying capability and credit record of borrower;

(3) Family month income level and stability.

If the loanee belongs to the range of loan object, and basically in accordance with the loan conditions, could have negotiation at loan limit, period, and loan mode. After consensus should demand the borrower take the first term fund of purchasing vehicle to deposit into our bank in full amount or deposit into the deposit account opened at Jiutai Rural Commercial Bank by dealer approved by our bank. For not belong to the range of loan object or not be in accordance with loan conditions, refuse to provide loan, and complete propagandizing and explaining work.

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 department and staff

Individual consuming credit department of each handling bank is the main investigation department of automobile loan, to have investigation by the handling staff appointed by credit operation department.

2.2.2 Investigation content

The loan takes the mode of investigation on spot, the handling staff should have credit investigation and customer evaluation to the borrower (guarantor) concrete content including:

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

2. 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;

3. Check the credit and income status of borrower, whether could repaying the loan capital and interest on time;

4. 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；

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

2.2.3 Form loan opinion or investigation examination and approving report

1. After investigation by the operator, to intent 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 comprehensive evaluation situation of the loan bank to the borrower;

(2) Loan guarantee situation;

(3) Function and use of the purchasing vehicle of loan;

(4) Supply and demand situation of the purchasing vehicle of loan.

2. Investigation before loan should be controlled within 3 working days generally.

2.3 Examine, examine and approve

1. 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 procedures.

2.4.1 Sign contract and handle guarantee procedures

1. Sign contract

When the handling bank signs loan and mortgage contract with the borrower, should demand the borrower to take the first term of money of purchasing vehicle deposit into the account of the dealer.

After the both sides sealed on the contract and go to effect, the credit department issues Individual automobile Loan Notice to the dealer (attachment 5-5-2), the handling bank should demand to supervise and urge the dealer to assist the borrower to go the related department to handle of getting license plate and other procedures, and within the regulated period to take invoice of purchasing vehicle, registration prove papers of the vehicle and all kinds of payment vouchers to hand over to the handling bank.

2. Registration

To take the purchasing vehicle as mortgage, after the handling bank receive the invoice of purchasing vehicle, together with the loanee to go to the vehicle managing department to handle the automobile mortgage registration.

To take other property as mortgage or pledge, registration method could refer to the content of the concerned mortgage, pledge of the handbook of the article 2 of chapter 5 of Credit Guarantee.

3. Insurance

To take the purchasing vehicle as mortgage, the handling bank should ask the borrower to handle the vehicle damage insurance, theft protection, risk of spontaneous combustion, and third-party liability insurance and other insurance in the insurance company appointed by Jiutai Rural Commercial Bank, and must clear in the guarantee slip the first beneficiary is the loan handling bank. Insurance period could not be short of the loan period, in order to safeguard the insurance could not be suspended, the handling bank could demand the insurance company to receive certain amount of renewal of insurance.

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.

The handling bank could ask the insurance company to open a special indemnity account, after the mortgage vehicle being in danger, all the money compensated by the insurance company will come into the account, the handling bank will be based on the repaying real situation to decide the use of the compensated money (repaying the loan capital and interest or paying to the borrower).

If the insurance company agrees with the insuring installment payment guarantee insurance, the handling bank should ask the borrower to insure installation payment guarantee insurance, insurance beneficiary is Jiutai Rural Commercial Bank.

To take other property as mortgage or pledge, insurance method refers to the related content about mortgage goods, pledge goods of the handbook of the article 2 of chapter 5 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

1. Precondition

The loan contract already goes into effect, the mortgage goods (pledge goods) have been handled registration and insurance, pledge goods, document of title, invoice of purchasing vehicle and guarantee slip have been removed to the handling bank for keeping.

2. Loan payment and use

After the precondition is practicable, according to the appointed time to transfer the loan to the settlement account of the cooperation automobile dealer.

2.5 Management after loan

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

2.6 To set up credit papers information

2.6.1 Credit papers of individual borrower:

1. Name, address and effective contact mode of borrower;

2. Income level and credit situations of borrower;

3. Model, price and use of purchased vehicle;

4. Amount, period, interest rate, repaying mode and guarantee mode of loan;

5. Loan collection record;

6. The situation of getting loan from other financial organ of borrower;

7. For the issued individual commercial vehicle loan, should also increase the developing situations of commercial vehicle operation industry, commercial vehicle depreciation, insurance situations and other contents;

8. The needed other papers of preventing loan risk.

2.6.2 Credit papers of dealer

1. Name, legal representative identity and credit situations, operation address of dealer;

2. Copies of all kinds of business certificates and licenses;

3. Business cooperation agreement;

4. Copies and code of loan card approved and issued by the People’s Bank of China;

5. Agency qualification of the selling automobile of dealer;

6. The analyzing report of financial status and operation status of the dealer;

7. The needed other papers of preventing loan risk.

2.7 Bad loan administration

If the borrower is not repaying the capital and interest according to the contract appointment for continuous 3 terms, all not repaying loan of the borrower should be considered as bad loan.

If the borrower is not according to the regulated time and amount of the contract to repay in continuous 2 times, It will be taken the lead by the credit department, according to the contract appointment, for the loan of taking mortgage or pledge mode as guarantee, through handling mortgage or pledge right according to law, to take back the loan capital and interest.

2.8 Management of archives and papers

1. The handling bank should carefully keep the loan papers of the borrower according to the loan archives managing method of Jiutai Rural Commercial Bank, to carry out borrowing system, not allowed to reveal the commercial secret and individual papers of loan applicant.

2. The loan papers are including: application papers of borrower, approval forms, loan contract and related promise letter, all kinds of accountant vouchers, notices and so on.