Product definition

Fixed assets loan refers to the domestic and foreign currencies loan offered by the loan bank to the legal persons of enterprises (public institutions) or other organizations that can become borrowers according to national regulations to make investment in fixed assets.

Use of loan

To be used by the borrower as domestic or foreign currency investment in fixed assets project.

Application requirements

(1) The borrower shall be approved by and registered with industrial and commercial administrative department or competent authorities;

(2) The borrower shall have good credit status and no significant poor record;

(3) If the borrower is the legal person of a newly established project, of which the controlling shareholders shall have good credit status without significant poor record;

(4) If the state has requirements on the investment subject qualification and experience in managing, they must be met;

(5) The use of loan and repayment source are clear and lawful;

(6) The project accords with the industrial, land and environment protection policies of the country, and has fulfilled the legal management procedures on fixed assets investment according to regulations;

(7) Accord with the national regulations on the capital system of the investment project;

(8) Other conditions required by the loan bank.

Loan amount

The loan amount shall be determined in consideration of the patterns of lending, the capital demand of the borrower’s production operation and the value of the guarantee.

Loan period

1. As for the large and medium-sized projects (total investment amount is over 500 million Yuan) of basic industry and infrastructural construction, the loan period shall not exceed 12 - 15 years, small project not exceed 8 years.

2. The large and medium-sized industrial projects shall not exceed 8 years and small project not exceed 5 years (the standard of large, medium-sized and small industrial projects shall be implemented in accordance with the relevant regulations ).

3. The loan period for other non-industrial projects, except for basic industrial and infrastructural construction projects, shall be no longer than 10 years.

4. As for special projects, the loan repayment period shall be determined reasonably according to the specific situations of the project.

Mode of repayment

The loan within one year period shall take the mode of sum repayment of principal with monthly or quarterly interest settlement; the loan over one year period shall take the mode of monthly or quarterly interest settlement, average principal and interest/principal or installment repayment of loan principal.