1 Summary

1.1 Definition

Our bank provides loan to satisfy the business fund demand for the retail customers. The customers of personal operation are mainly including the owner of small and micro businesses, individual business, peasant household. The period of the grade loan is usually not exceeded 3 years, to take mortgage goods, pledge goods or guaranty as guarantee.

1.2 Object

The object of personal operation loan is full of 18 years old, natural person of having full capacity for civil conduct.

1.3 Use

Use of personal operation loan is divided into 2 kinds of project operation loan and short term fund turnover loan, not allowed to issue the no appointed use of loan.

Project operation loan is suitable for personal operation fixed assets investment project or operation circulating fund and middle and short term of fund demands.

Short term of fund circulation loan is suitable for fund circulation demands of temporality and seasonality during personal production operation.

1.4 Conditions

The borrower of applying for personal operation loan should possess the following conditions at the same time:

1. Operator must possess full capacity for civil conduct, and is over full of 18 (including) years old;

2. Having steady economic income, possessing the capability of repaying loan capital and interest on time;

3. Customer credit grade must be over A grade (including), the customer credit grade of applying for loan of taking the warranty guarantee mode must be over AA grade;

4. Credit status is better, no illegal and undiscipline behaviour, no bad record; no bad record refers to inquire based on the personal credit information basic database of the People’s Bank of China ( that is to cause the following bank loan information record really because of spite reason of borrower:

(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 is 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. Concrete situation explanation could be reflected in the investigation report of the customer manager.

5. Having stronger operation managing capability; having fixed production operation location;

6. The engaging production operation activities are legal, accordance with the national industrial policies, having legal, steady income source, having the capability of repaying loan capital and interest on time;

7. For applying for circulating fund loan, must have over 50% of self-owned fund of the sum of project investment;

8. To engage special industry operation, needs to have Special Industry Operation Certification;

9. To take the warranty guarantee mode for loan, the business of stating clearly in engaging business license of operator is over full of 1 year;

10. The other conditions demanded by the loaner.

1.5 Amount

The issuing loan of taking the mode of providing warranty guarantee, the single customer loan is not exceeded 500000 Yuan in principle.

1.6 Time limit

The loan period is mainly as short term loan in 1 year (including), usually not exceeds 3 years; the longest period of personal short term circulating loan is not exceeded 1 year.

1.7 Interest rate

Interest rate of individual operation loan will be carried out according to the floating interest rate policy regulated by the nation.

2 Operating procedure

2.1 Borrower application

The customer having intention to handle individual operation loan, needs to put forward application to the loaner, and to provide the following papers faithfully:

1. Proof document of qualification, including but not limited the following one kind or several kinds:

Identity cards of borrower and spouse, marriage certificate, residence booklet or other effective residence certificate, original and copies.

2. Proof document of loan use, including but not limited the following one kind or several kinds:

(1) Purchases and sales contract, such as: purchasing goods contract, agreement or intention letter and so on.

(2) Proof document of production operation, such as: stock waybill, marketing bill, project feasibility analyzing report and so on.

3. Proof document of repaying source, including but not limited the following one kind or several kinds:

(1) Income certificate of family members, such as unit income proof, tax invoice, proof of house renting income, proof of sharing out bonus and so on;

(2) Proof document of property and liabilities, such as: self-owned house, car, deposit, securities, stock rights certificate, loan in bank and repaying situation and so on;

(3) Production operation situations, including tax paid proof as well as other operation income proofs or proof of repaying capability and so on.

4. The needed proof document of guarantee. The needed mortgage (pledge) goods detailed list for mortgage (pledge) goods guarantee, ownership right certificate, value proof, as well as mortgage (pledge) proof of agreed by the person of having handling right; warranty guarantee needs to provide document and related credit certificate papers of agreed to carry out joint responsibility warranty by warrantor.

2.2 Loan investigation

Loan investigation should investigate importantly the basic condition, loan use, repaying capability of the borrower, and forms detailed written investigation report based on the investigation content. Investigation before loan must be investigated by two customer managers and strictly to carry out face interview system. Both the two customer managers sign and seal on the loan papers. Papers provided by the borrower needed to copy on file, the copies must be stamped official seal and signed by borrower or papers provider, so as to prove the source of papers is legal, the content is true. Investigator should check the original papers and copies seriously, make out “accordance with the original” on copies, double sign by investigators.

Investigation content is mainly including:

1. Having examination and verifying to the credit of borrower, the important point of examination and verifying including but not limited to:

(1) Whether possesses operation qualification, including examination and verifying business license, tax registration certificate and other related certificate;

(2) Education background of borrower, experiences and capability of operation management, major operation outstanding achievement and social contact environment and so on;

(3) Having analyzing to property and liabilities situation, mainly to analyze overall properties, overall liabilities, net properties and so on;

(4) Having analyzing to profit capability, mainly to analyze profit sum, net profit amount, sales profit rate and so on;

(5) Having analyzing to cash flow, based on the operation and investment plan, forecasting future cash flow, especially is cash net flow of operation activities;

(6) Market prospect of operation project, developing potential, sale forecast and industry position and so on;

(7) Whether the operation project is belonged to the range of prohibited and limited by the nation.

3. Examination and verifying to the guarantee situation, the important point of examination and verifying including but not limited to:

(1) Whether the guarantee procedures are all in readiness:

Whether the property right of mortgage (pledge) goods are clear, whether has got agreeing of person of ownership right, whether set-up mortgage (pledge) goods are in accordance with law and regulations, whether handled mortgage (pledge) registration.

Whether warranty guarantee has got legal authorizing.

Guarantee capability analyzing:

To provide commercial buildings, shop as mortgage, must go to the spot to have investigation, to have analyzing combined with the position of mortgage goods, traffic status, surrounding environment, supporting facility, property management, house structure, house (building) ages and other situations, to have analyzing to the value of mortgage goods, cash ability, and having investigation to the influence of city plan to mortgage (pledge) goods within the mortgage period;

Whether the mortgage (pledge) rate is in accordance with the regulations;

Guarantee capability analyzing of guarantor.

2.3 Examination

Reference to the related regulations of examination of article 2 of chapter 2 of the hand book of Credit Business Basic Flow to carry out.

2.4 Examination and approving

Reference to the related regulations of examination and approving of article 2 of chapter 2 of the hand book of Credit Business Basic Flow to carry out.

2.5 Loan issuing

1. Sign contract and handle related procedures. After the loan application get approved, the loaner sign loan contract with borrower, sign guarantee contract with guarantor, and strictly carry out the face sign system. Mortgage (pledge) guarantee mode needs to handle registration procedures and insurance procedures.

2. The loaner should be according to the appointment of loan contract, to have management and control to the payment of loan fund through the mode of loaner authorized payment or  borrower acting on his own payment, to supervise the use of loan fund according to the appointed use.

2.6 Management after loan

1. The loaner should enhance the management of personal operation loan, to ensure the recovering of the loan on time, and complete evaluation work after loan.

2. After loan issued, customer manager should have inspection to borrower, mortgager, pledgor, guarantor, inspecting whether the family and economic status of borrower and guarantor have changing, physical condition of borrower, keeping situation of mortgage (pledge) goods, the borrower must be according to the contract appointment to use the loan, breaking the contract appointment, the loaner has the right to stop issuing loan and recovering part or overall loan ahead of time. For the part of not according to the contract appointment to use loan, according to the regulations of the People’s Bank to punish adding interest.

2.7 Bad loan administration

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

2.8 Achieves management

Reference to the regulations of article 3 of chapter 3 of the handbook of Credit Business Achieves Management to handle.