Bank of China is active in mortgage lending so that more Beijing residents can afford a house. Over the years, home mortgage loan has always been a priority for the bank. Continuous efforts have been made to develop innovative financial products, such as personal home decoration loans and second-hand housing mortgage loans, to facilitate house buying, house decoration and household articles consumption. As a result, more Beijing residents are able to own a house and enjoy peace and happiness. By the end of the first quarter of this year, Bank of China Beijing Branch has issued 37, 005 personal home loans, totaling RMB 21.429 billion. By offering personal home loans, Bank of China enhances the residents' housing consumption capacity, which helps improve residents' living conditions and advance the housing industry in Beijing.
While developing consumer credit business, Bank of China continues to develop personal home loan business. It improves the loan process, standardizes home loans and actively supports the residents to buy their own residential houses. With the development of Beijing real estate secondary market, Bank of China gradually strengthens financial support to buyers of ordinary residential housing for personal use, helps build a more mature second-hand housing mortgage loan market and actively promotes personal home decoration loans. The bank provides appropriate loan and financing services for home decoration.
Currently, Bank of China plans to further perfect the home loan submortgage, and streamline business procedures to better satisfy borrowers' requirements. Bank of China launches discount-interest loan business at a right time. Bank of China Beijing Branch uses its own funds to disburse the home loans in full amount to the borrowers who meet the requirements stipulated in Trial Measures for Personal Housing Discount Secured Loans of Beijing Housing Funds Management Center. The Center provides a certain percentage of loan discount interest to the borrowers by government housing funds, and the commercial loan guaranteed by Beijing Housing Loan Guarantee Center. This loan is an innovative business that integrates the advantages of commercial home loan and provident fund loan, and simplifies the intermediate procedures through close cooperation of three parties. First, the house buyers use provident fund to apply for full loan from Bank of China at the commercial loan interest rate, and the Fund Center provides a certain percentage of loan discount to the provident fund contributor. The Loan Guarantee Center provides the borrowers with guarantee of repayment within the loan period, enabling them to enjoy more reliable repayment guarantee, thus reducing the risk of growing repayment pressure caused by accidents. The policy discount interest business of personal home secured loans boasts many advantages such as discount, low cost, simple procedures, more professional guarantee, and more security.
Paying attention to changes in the market and the requirement of customers, Bank of China Beijing Branch has made great innovative achievement in consumer credit business. Since the consumer credit business was launched in 1999, the variety of retail loans has been constantly enriched. Currently, there are a total of 8 categories and 18 business types. The credit scale has also been expanding. By the end of March 2004, the total balance of retail loans is RMB 24.833 billion. The total loans in the first three months reached RMB 3.548 billion, a year-on-year increase of RMB 2.1 billion.
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