Fixed asset loan

Business Overview

The loan for fixed asset project refers to the home-currency and foreign-currency loan granted by our bank to the borrower for such fixed asset investment projects as new construction, extension, transformation, development and procurement.

Application requirements

1.        Registered with the approval of the department in charge of industry and commerce, or set up with the approval of competent authorities;

2.        Complete operation and management system, sound financial status, high qualification of the core management staff;

3.        Good credit, having the ability to repay the principal and interest of the loan on time;

4.        Valid loan card, opening the basic account or general account at the Bank. If the foreign exchange loan is applied for, the import certificate or registration document must be available;

5.        Provide the valid guarantee accepted by CGB;

6.        Other conditions defined by the Bank.

The project for which the borrower applies for the loan shall meet the following conditions

1.        Comply with the national industrial policy, credit policy and the policy of the Bank;

2.        Project proposal, feasibility study report (including the assessment comments of experts) as approved by competent authorities according to provisions and written reply documents, etc.;

3.        The project to which the loan is granted has the proportion of capital as defined by the State;

4.        The technology and equipment adopted are advanced and suitable;

5.        The supplementary measures are implemented. The required raw materials, fuel and power have reliable sources. The “three-waste” treatment and environmental protection measures are implemented. Normal production is possible after the project is completed;

6.        The products are well sold and competitive in the market and have good economic benefits. Reliable sources of funds are available to repay capital with interest.

Loan term

It normally does not exceed 10 years

Documents required for applying for the loan

1.        Application form for loan;

2.        Annually audited business license of the business entity or institution, corporate code certificate, tax registration certificate, certificates of the legal representative;

3.        Valid loan card. If the foreign exchange loan is applied for, the import certificate or registration document must be available;

4.        The financial audit report of the last three years audited by the accounting (auditing) firm (balance sheet, profit-and-loss statement, chart of cash flow) and the financial statements in recent period.

5.        The valid shareholder meeting resolution (or resolution of board of directors), authorization letter and shareholder profiles shall be provided according to the Articles of Association;

6.        Project proposal, feasibility study report (including the assessment comments of experts) and written reply documents, etc.;

7.        Report on the preliminary preparation for the project;

8.        Proposal on raising the capital in cash, other constructes funds, production and circulating funds, and certification documents confirming the sources of funds;

9.        If collateral or pledge is used, the list of things mortgaged, ownership certificate, appraisal certificate and certificate showing the owner’s consent to pledge or mortgage shall be provided. If guarantee is used, the credit certification data of the guarantor shall be provided. Please refer to the relevant provisions for the working capital loan;

10.     Other documents defined by the Bank.