Product definition:

In entrusted loan business, the loan capital is provided by the consignor for which the consignee shall be in charge to issue the loans and to supervise their utilization and to assist to recover the loans on behalf of the consignor, according to the prospective borrowers, usages, amount, periods and interest rates stipulated by the consignor.

Loan subjects:

The subjects of entrusted loan business include consignor, consignee, borrowers and guarantors.

1. Consignor refers to the entity and individual providing the loan capital. In this text, the consignor refers to government sectors, enterprise and public institutions, other economic organizations etc.  At present, the loan business entrusted by individuals or individual businesses are not accepted.

2. The consignee is Jiutai Rural Commercial Bank Co. Ltd. of Jilin Province;

3. Borrowers refer to the legal persons of enterprises and public institutions, other economic organizations, individual businesses and natural persons that are defined by the consignor to get entrusted loans from consignee;

4. Guarantors refer to entities and individuals that are approved by the consignor to provide guarantee to the borrowers.

Entrusted loan business belongs to bank intermedium business and the consignee shall not take any loan risk. The consignee offers only entrusted loan services and collect service charges for the loans, not to make capital advances, not to introduce borrowers for the consignor, not to accept the entrusted loans without specific purposes and designated borrowers.

Loan principal:

Following the principal of equality, willingness, fairness, honesty and credibility.

Loan interest rate:

The interest rate of entrusted loan shall be determined independently by the consignor.

Charging standard:

The service charge on entrusted loan shall be paid by the borrower and be collected according to the modes described in “Entrusted Loan Agreement”.