Interim measures for the administration of personal loans

    (February 12, 2010 China's Banking Regulatory Commission [2010] 2nd release come into force on the date of promulgation) Chapter I General provisions

    First to standardize the personal loan service of banking institutions, strengthen prudent management of personal loan business, promote healthy development of personal loans, according to the People's Republic of China Banking Regulatory Act and the People's Republic of China commercial bank law and other laws and regulations, these measures are formulated.

    Article People's Republic of China territory by the China Banking Regulatory Commission approved the establishment of banking institutions (hereinafter referred to as the lender) to operate a personal loan business, should comply with these measures.

    Article personal loans mentioned in these measures refers to the lender paid to eligible natural persons for personal consumption, production and management purposes, such as foreign currency loans.

    Fourth personal loans should follow law compliance, prudent management, the principles of equality, free, fair and honest.

    Article fifth personal loan process lender shall establish effective management mechanisms, developing loan management system and operation of each loan, clear the loan object and scope of risk management implementation differences, establish loan operation of assessment and accountability mechanisms.

    Sixth lenders should be by region, variety, customer group dimension, such as a personal risk limit management system.

    Seventh use of personal loans shall comply with laws and regulations and relevant policies of the State, the lender shall not be released without the specified uses of personal loans.

    Lenders loan funds management should be strengthened, and effectively guard against personal loans business.

    Eighth personal loan terms and interest rates should conform to the relevant regulations of the State.

    Nineth lender shall establish the borrower a reasonable amount of debt-service ratio control, combined with the borrower's income, debt, expenditures, loans, guarantees and other factors, determines the loan amount and term, control each repayment does not exceed the amount of the borrower repayment ability.

    Tenth in accordance with these measures of China Banking Regulatory Commission to supervise personal loans business.

    Chapter receiving and investigating

    11th personal loan application should have the following conditions:

    (A) the borrower is to have full civil capacity of People's Republic of China citizens or in line with relevant regulations of the State of natural persons abroad;

    (B) the loan purpose clearly legitimate;

    (C) reasonable loan amount, term and currency;

    (D) the borrowers ' repayment attitude and ability to repay;

    (E) good credit status of the borrower, no significant adverse credit records;

    (Vi) other conditions required by lenders.

    12th should be required by the lender to the borrower in writing applications for personal loans, and require the borrower to provide evidence to prove that the information on loans.

    The 13th after the lender accepts the application for borrowers, should perform the duties of due diligence, loan application content and circumstances of the individual authenticity, accuracy, and completeness of investigation, survey and assessment opinions formed.

    14th loan investigation including, but not limited to, the following:

    (A) the basic situation of the borrower;

    (B) the income of the borrower;

    (C) purpose;

    (D) the source of repayment, repayment ability of the borrower and repayment;

    (E) willingness to surety, guarantee or inward (MS) delay value and liquidity.

    15th lending survey should be based on field surveys, indirect survey as a supplement, take on-site verification, telephone enquiries and information way and method.

    16th article, without prejudice to the borrower by the lender the legitimate rights and interests and under the prerequisite of controllable risk, lending survey some of the specific issues in prudential trust third parties to handle, but it must be explicit qualification of third parties.

    Lenders not lending survey of all matters entrusted to a third party.

    17th the lender shall establish and strictly enforce the loan interview system.

    Through electronic banking channels low-risk mortgage loans, the lender should at least take effective measures to establish the borrower's true identity.

    Chapter III risk assessment and approval

    Loan review 18th loan investigation legality, propriety, accuracy, to undertake a comprehensive review, focus on the due diligence investigation and borrowers ' ability to repay, credit, warranties, resist (MS) charge rate, the degree of risk, and so on.

    19th loan risk evaluation should be based on the analysis of cash income for the borrower, quantitative and qualitative analysis, comprehensive and dynamic the loan review and risk assessment.

    Lenders should establish and improve the credit history of the borrower and evaluation system.

    20th the lender shall be based on prudent principles, perfecting the system of delegated management, standardizing approval procedures, clear loan approval authority, the implementation of trial separation and authorized loan approval, ensuring that the loan approval in accordance with authorized independent approval of loans.

    Article 21st unapproved applications for personal loans, the lender should inform the borrower.

    22nd lender according to the major economic changes, significant increase in default rates and other unusual circumstances, analysis to evaluate the loan approval process, timely and targeted adjustment approval policies, strengthen the management of the loans.

    Fourth chapter agreement and release 23rd the lender shall enter into a written contract with the borrower, and required guarantees should also sign a guaranteed contract.

    The lender shall require the borrower to sign a loan contract and other relevant documents, but excluding electronic banking channels for the loans.

    24th a loan contract shall be consistent with the People's Republic of China contract law provisions expressly agreed upon the parties ' good faith commitment and use of loan funds, payment object (scope), payment amount, payment terms, payment methods, etc.

    Loan contract terms should be set up and clear the borrower does not perform the contract or negligent in performing the contract should be liable for breach of contract.

    25th the lender shall establish a sound contract management system, and effectively guard against legal risk in personal loans.

    Uses a standard clause in the loan contract, and shall safeguard the legal rights of borrowers and be publicized.

    26th the lender shall, in accordance with the People's Republic of China real right law and the People's Republic of China security law and other relevant provisions of laws and regulations, standardizing security processes and operations. Mortgage registration according to the contract, the lender should be involved.

    Lenders authorize third parties to carry out, and registration of collateral should be verified.

    Guaranteed unsecured personal loans, the lender should be completed by at least two credit officers.

    27th lenders should strengthen management of loans issued, following the principle of separation of credit and lending, the establishment of an independent loan management department or post, responsible for providing loan conditions, personal loans that meet agreed criteria.

    Article 28th after the entry into force of the contract, the lender should be contracted loans in a timely manner.

    Fifth chapter payment management

    Lenders to 29th article shall be agreed upon in the contract, by the lender Trustees paid or independent of the borrower to pay the way for loan funds to pay for management and control.

    Entrusted by the lender to pay means according to the borrower by the lender's money withdrawal application and paying delegates will loan payments to borrower transaction objects that meet the contractual stipulation.

    Autonomy refers to the lender to pay the borrower according to the borrower's withdrawal request to loan funds disbursed directly to the borrower's account, and independently by the borrower payments to borrowers who meet the stipulation of the contract transactions.

    30th personal loan funds should be entrusted with the means of payment transactions to the borrower by the lender paid, except in the cases provided for in this article 33rd.

    31st trustee paid by lender, the lender should be presented when using loan, require the borrower to pay the application and authorize the lender loan funds payable according to the contract.

    Prior to loan disbursement of funds approved by the lender the borrower transaction data and document compliance with contract conditions, confirmation of details after payment records.

    Upon completion of the 32nd lender Trustees paid, shall provide a detailed record of capital flows, aggregate saving vouchers.

    33rd personal loan, one of the following circumstances, the lender agreed to pay can be taken independent of the borrower:

    (A) the borrower cannot determine in advance the specific transaction object and the amount is not more than 300,000 yuan;

    (B) the borrower objects do not have conditions for effective use of non-cash settlement of transactions;

    (C) loans for production and management of funds and the amount of not more than 500,000 yuan;

    (D) other circumstances as stipulated by laws and regulations.

    34th independent payment by the borrower, the lender should be prior agreement with the borrower in the loan contract, periodic report or inform the lender requires the borrower loan payments.

    Lender through accounts analysis, document examination or field survey, verification of conform to the agreed use of loan payments.

    The sixth chapter post-loan management

    After 35th personal loan payment, the lender should adopt effective methods on the use of loan funds, the borrower's credit and change tracking and monitoring and analysis on security, ensure the safety of loans. Article 36th lenders should distinguish between the personal loan amount, object, and so on, determine the appropriate modalities, content and frequency of loan checks.

    Lenders loan check the functions of the internal audit sector quality spot checks and evaluation.

    37th article should be tracked regularly analyzes and evaluates the borrower by the lender to perform a contract for loan of content and as a basis for follow-up in cooperation with the borrower's credit rating.

    38th lenders should be in accordance with laws and regulations and agreed in the loan contract, contractual commitments to borrowers is not providing truthful and complete information and use is not in accordance with the contract, payment and other actions held accountable for breach of contract.

    39th as the lender, a personal loan could be extended.

    Within one year (inclusive) of personal loans, extended term total may not exceed the term of the loan; a year of personal loans, extended term today added to the original term of the loan shall not exceed the maximum loan under the loan terms.

    40th lender shall, in accordance with a contract for loan, loan principal and interest.

    For loans that are not in accordance with the contract for loan repayment, the lender shall take measures to collect, or restructuring the agreement.

    The seventh chapter legal liability 41st loans in violation of regulations in these measures of individual loans, the China Banking Regulatory Commission shall be ordered to correct within.

    Lenders, one of the following circumstances, China Banking Regulatory Commission, may be taken as the People's Republic of China banking supervision law of the 37th article of the regulation:

    (A) due diligence of the investigation, review of the loan;

    (B) is not required to establish and implement the loan interview, the institution of a loan contract signed;

    (C) uses a standard clause in the loan contract is not public;

    (D) violations of the provisions of article 27th;

    (E) payment management does not meet the requirements of this approach.

    42nd lender has any of the following circumstances, measures of China Banking Regulatory Commission in addition to the 41st to take regulatory measures, also under the People's Republic of China Banking Regulatory Act, 46th, 48th, stipulates punishment for it:

    (A) the issuance of personal loans that do not meet the criteria;

    (B) signed the loan contract does not comply with these rules;

    (C) violations of the provisions of article seventh;

    (D) all the matters entrusted a third party lending survey;

    (E) permission beyond or disguised beyond loans loans;

    (Vi) fiction inspired borrowers access to credit;

    (VII) for breach of contract for loan should the borrower found and not found, or is found but did not take effective measures;

    (VIII) other serious violations of the prudential rules as provided herein.

    The eighth chapter supplementary articles

    Article 43rd of deposit, bond or other financial products approved by the China Banking Regulatory Commission pledge personal loans, consumer finance companies, auto finance companies and other non-bank financial institutions issuing personal loans may refer to these measures.

    Banking institutions granting loans to farmers for productive and other countries there are specific policy provisions of special types of personal loans to suspend the implementation of this approach.

    Credit card debt, these procedures do not apply.

    44th individual industrial and commercial households and rural contracted operation households to apply for personal loans for production and the amount is more than 500,000 yuan, as stipulated in the loan application loan management.

    Article 45th lenders personal loans business management should be developed in accordance with these measures rules and procedures.

    Article 46th explain these measures by the China Banking Regulatory Commission. 47th purposes herein from the date of publication.