Name
Personal Loan for Commercial Car
Introduction
Personal Loan for Commercial Car is a kind of car loan issued by Bank of China to natural-person borrowers who want to purchase automobiles with the purpose of gaining profits by legal manufacturing and operating.
The commercial automobiles purchased and operated by borrowers only refer to first-hand commercial automobiles. Concerning the use of the automobiles purchased by borrowers who apply for the loans, the commercial automobiles are mainly divided into passenger buses, freight trucks and technical vehicles.
I. Loan Term
1. Generally, the term of loans for passenger buses should be no longer than three years, and for those in line with corresponding conditions, the term should be no longer than four years at most.
2. The term of loans for freight trucks and technical vehicles should be no longer than two years in general, and for those in line with corresponding conditions, the term should be no longer than three years at most.
II. Loan Quota
1. In principle, the quota of passenger bus loans shall be limited within 60% of the passenger bus price.
2. In principle, loans for freight trucks and technical vehicles shall be limited within 50% of the wagon price.
III. Interest Rate
Based on the length of loan term, the corresponding interest rate published by the People's Bank of China should be adopted, and be floating upward from the benchmark interest rates published by the People's Bank of China.
IV. When applying for the loans, you are required to provide the following documents:
A. Loan Application Form;
B. Original and copy of the ID cards, Hukou book, or other valid residence certifications of the applicant and the applicant's spouse;
C. Proofs for employment and income, as well as proof of family status (including but not limited to the proofs issued by the applicant's employer, neighborhood committee, and village committee, etc.);
D. Automobile purchase agreement or contract signed with the dealer;
E. Certificates or documents needed for guarantee, including but not limited to the following documents:
1. Mortgage (pledge) item list, mortgage (pledge) agreement from the person with disposal rights (including property co-owner);
2. Ownership or usufruct certificate of the mortgage (pledge) items issued by authority department, certificate of evaluation in written form, and insurance agreement issued by departments identified by Bank of China;
3. Pledged items must provide ownership certificate;
4. Documents signed by the guarantor who promises to undertake the guarantee of joint liabilities, as well as relevant certificates of credibility.
F. Certificates of the operating range, previous and current operating situation (including but not limited to rental agreement, contract agreement, and transportation receipts, etc.);
G. Certificate of applicant's capability of the down payment of the automobile;
H. Statement on the purpose of the purchased automobile and corresponding statement on earning forecast;
I. Other documents required by Bank of China.
V. Loan Guarantee
The natural person guarantee is not accepted by Bank of China, but you can choose one of the following ways of guarantee:
A. Automobile mortgage and legal person guarantee of automobile dealer, guarantee company or automobile manufacturer;
B. Real estate mortgage;
C. Pledge of deposit receipt or other securities which are in line with the rules of Bank of China;
D. Other ways of guarantee approved by Bank of China.
VI. Loan Insurance
Insurance for the mortgage items should be purchased as required by Bank of China. The insurance term may not be shorter than the loan term, and the insurance amount may not be lower than the sum of loan principal and interest. Bank of China has the priority of insurance compensation. The insurance policy may not set any restriction which is injurious to Bank of China's rights. If the purchased automobile is regarded as the mortgaged item, you are required to cover the following insurances at least:
1. Motor vehicle damage insurance;
2. Burglary, theft and robbery insurance;
3. Third party liability insurance;
4. Spontaneous combustion insurance;
5. Free of deductible liability insurance;
6. If purchasing passenger bus, the borrower must cover passenger liability insurance;
7. Other insurances required by Bank of China.
VII. Loan Issuance
After the Mortgage/Pledge Contract or the Guarantee Contract takes effect and corresponding mortgage/pledge formalities are completed, Bank of China shall transfer the loans into designated dealer's account, and supervise the utilization of loans as authorized.
VIII. Loan Repayment
Personal Loan for Commercial Car must be repaid by monthly matching the principal repayment or matching the principal and interest repayment, instead of lump-sum repayment of principal with interest at maturity.
1. The method of loan repayment and the plan for the repayment of principal with interest should be clearly prescribed in the Loan Contract;
2. Customers can choose the repayment method as it is required, but only one repayment method can be chosen for each loan. After the contract is signed, the repayment method may not be modified without the approval of Bank of China.
Process
Since there are a lot of documents required for loan application; if you have any other questions, please consult the local branches of Bank of China with the brand mark of "Ideal Home", or just call 95566.
Kind Reminder
Loan Rescheduling cannot be conducted for commercial car loans.
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