【Introduction】 【User's Guide】

【Introduction】

The term Personal Business Start-up Loan refers to a guaranteed RMB loan granted by IB to borrowers to facilitate cash flow in production and operating activities, the purchase (install or repair) of light-duty equipment (machinery) and the running of franchise chain business.

【User's Guide】

Eligibility

Personal business start-up loans are granted to self-employed people holding non-corporate business licenses, partners of companies and private business owners.
Applicants of personal business start-up loans must meet the following requirements:
1. The applicant must be a natural person with full civil capacity under the age of 60;
2. The applicant must be in possession of the business license, tax registration certificate and related industrial licenses issued by the administration of industry and commerce;
3. The applicant must be engaged in legal production and operating activities for products with development potential or that are marketable. The applicant must be able to repay the principal and interest of the loan in installments on time.
4. The applicant must have creditability, abide by laws and regulations, be free of bad credit or debt records and be able to provide mortgage, pledge or guarantee accepted by IB;
5. The applicant is required to have permanent residence and site of business in the place where application is submitted;
6. The applicant is required to open a settlement account with IB and use such account for regular settlement;
7. The applicant is required to adhere to other terms and conditions set by IB.

Term, Line & Rate

1. The amount of personal business start-up loans cannot not exceed 70% of the sum required to facilitate cash flow in production and operating activities, purchase (install or repair) small-sized equipment (machinery) and run franchise chain business;
2. Generally the tenure of personal business start-up loans is 3 years. The maximum tenure is 5 years. The tenure of loans made to facilitate cash flow in production and operating activities should not exceed 1 year;
3. The interest rate set by the PBC applies to personal business start-up loans and is subject to fluctuation within specified limits.

Loan Repayment

For loans with tenure shorter than one year (including one year), principal and interest should be repaid when the loan matures.

For loans with tenure longer than one year, borrowers may choose straight-line repayment schedule, reducing-balance repayment schedule or other repayment modes after negotiating with IB.