Product definition:

It refers to the petty loans issued by Jiutai Rural Commercial Bank to the borrowers, relying on the financial sector’s fund releasing platforms for the direct subsidies to grain producers and for farmer’s comprehensive direct subsidies, with the direct subsidies (including direct subsidies to grain producers, farmer’s comprehensive direct subsidies and other direct subsidies) that the peasant households shall receive during the subsequent years as pledge guarantees, for which the loan volume shall be checked and ratified in consideration of capital and interest repaying rate.

Prospective borrowers:

The peasant households who are beneficiaries of the national direct subsidy policy, without poor credit records in the credit reference system of People’s Bank of China.

Conditions of loan:

1. Residents in the servicing area of Jiutai Rural Commercial Bank, in good health, being honest and trustworthy, with legal and steady income source;

2. Beneficiaries of national direct subsidy policy, who are willing to use their direct subsidies during the subsequent years as the pledge guarantee;

3. There exists no dispute over the ownership of direct subsidy;

4. The production and operation activities accord with national laws and regulations and industrial policies;

5. In principal, the age of male borrower plus loan period shall be ≤ 60 years old and the age of female borrower plus loan period shall be ≤ 55 years old. This condition can be properly relaxed.

Loan interest rate:

Accord with “Pricing Administrative Methods on RMB Loan Interest Rate of Jiutai Rural Commercial Bank of Jilin Province”.

Loan period:

The loan period shall be determined through consultation with the borrower, in consideration of the factors such as the line of credit, intended use of loan, repaying capability, production and business operation period and the remaining land contract period, which shall be divided into half a year, 1 year, 1.5 years, 2 years, 3 years, 5 years and 10 years.

Loan volume:

The loan volume shall be ≤ the amount of last direct subsidy X magnification times (maximum 10 times) X pledge rate (maximum 50%).