Introduction        Features        User's Guide

【Introduction】

Policy-pledged Loans refer to a type of credit service offered by the Industrial Bank. Specifically, the borrower pledges an insurance policy (for which he/she is both the policy holder and the beneficiary) from an insurance company recognized by the Industrial Bank in return for a loan, which should be repaid with interest as agreed when the term is due.

【Features】

Policy-pledged Loans enable the policy holder to realize the liquidity of the insurance funds in a policy whist maintaining the rights and interests prescribed in the insurance contract. This is a valuable form of personal financing.

【User's Guide】

Application Eligibility

1.Applicants are required to be citizens of the People's Republic of China (excluding Hong Kong, Macau and Taiwan citizens) aged from 18 (inclusive) to 60 (inclusive) years old, and that possess the necessary civil capacity;

2. Applicants are required to have the capacity to repay loans and have a sound credit record;

3. Applicants shall provide insurance policies that comply with the requirements of the Industrial Bank as a pledge;

4. Applicants are required to adhere to other terms and conditions stipulated by the Industrial Bank.

Pledged policies should also satisfy the following conditions:

1. Policies must be issued by an insurance company that has a cooperation agreement with the Industrial Bank;

2. Policies should be savings policies or investment and dividend policies;

3. Policies can be cancelled or cashed at any time;

4. Insurance gains are expected at the time of the pledge, namely, policies have cash value;

5. No ownership disputes, no loss has been reported, not frozen/suspended by law;

6. Other terms and conditions stipulated by the Industrial Bank.

The term Cash Value refers to the cash amount of the policy verified by the insurance company and cashable when the application for a loan is submitted (following the deduction of relevant taxes etc).

Loan Limit, Tenure & Interest Rate

1. A Policy-pledged loan shall not exceed 90% off the cash value of the policy in question as confirmed by the insurance company, namely, the loan pledge rate cannot exceed 90%;

2. The tenure of a policy-pledged loan is one year at most, and shall not exceed the term of the policy in question;

3. The benchmark loan interest rate of the relevant class in period in question set by the People's Bank of China applies to policy-pledged loans, and is subject to fluctuation within specified limits.

Loan Repayment

Principal and interest due shall be repaid on a lump-sum basis by means of equal principal repayment, or in such a manner as accepted by the Industrial Bank.

Documents Required

1. Application Form for Personal Pledge Loan from the Industrial Bank;

2. Valid proof of identity and supporting documents of residence;

3. Originals of policies to be pledged;

4. Receipts of insurance premium payment;

5. Other required documents.

(The information above is for reference only. Please refer to the specific regulations of your local IB branch for details. Please consult your local IB organization before making an application.)