Product definition

The working capital loan is a domestic or foreign currency loan offered by the loan bank to business entities and other organizations that can become borrowers according to national regulations, to be used in the daily production operation by the borrowers.

Use of loan

The loan bank shall agree on the clear and legal use of loan with the borrower. The working capital loan shall not be used in investments in fixed assets and stock right, and shall not be used in the fields and purposes which are forbidden by the state to produce and to operate. The working capital loan shall not be embezzled and the loan bank shall inspect and supervise the operating condition of the working capital loan according to contract.

Application requirements

(1) The borrower’s entity was established according to law;

(2) The use of loan is clear and lawful;

(3) The production operation of the borrower is lawful and compliant;

(4) The borrower has the capacity to operate continuously, with legal repayment source;

(5) The borrower has good credit status, without significant poor credit record;

(6) Other conditions required by the loan bank.

loan amount

In principle, the amount of working capital loan shall not exceed the average value of the annual incomes of the recent 3 years.

Loan period

The loan period shall be determined reasonably within the chargeable periods defined in the document of approval or charge license. In principle, the loan period shall be controlled within one half of the remaining chargeable period.

Mode of repayment

A lump-sum repayment of principal at maturity, with monthly interest settlement; average principal and interest or average principal; as for the loan period over one year, an installment payment plan is needed.