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Micro Loan

Date: 2016-04-15

Definition

Micro loan refers to loans in a small amount that Postal Savings Bank of China (“PSBC”) extends to a single borrower, including peasant household micro loan and merchant micro loan.

Peasant household micro loan refers to loans extended to peasant households to satisfy their funding needs for planting, breeding or other productive activities related to economic development in rural areas.

Merchant micro loan refers to loans extended to private business owners (including sole-proprietorship owner, individual partners of partnership business, and individual shareholders of limited liability company), individual industrial or commercial merchants and other micro or small enterprise owners engaged in production, trade etc. in urban and rural areas to satisfy their funding needs for production and operation.

Applicable Target

Natural persons aged 18-60 with full capacity for civil conducts

Variety

Secured peasant household loan; joint-guaranteed peasant household loan; secured merchant loan; and joint-guaranteed merchant loan

Lending Limit

RMB50,000 at most for peasant household loan and RMB100,000 at most for merchant loan (the limits may be higher in some areas and please refer to the local PSBC branch for specific information).

Lending Term

1-12 months, on a monthly basis. You may choose your favorable lending term according to your production or operation cycle, repayment ability etc.

Lending Rate

Specific interest rate is governed by provisions of the local PSBC branch.

Repayment Mode

Equal-amount repayment of principal and interests: the amount of principal and interests is spread equally throughout the whole term for monthly payment in an equal amount.  

Phased equal-amount repayment of principal and interests: you only have to repay interests within the grace period; and repayment is made as per the equal-amount repayment of principal and interests after the grace period.

One-off repayment of principal and interests: lending principal and interests are paid off in lump sum upon maturity.

Granrantee

You may choose either natural person guarantee or joint guarantee as the guarantee form.

You should see to it that your loan is guaranteed by one or two natural persons with compensation capability.

Joint-guaranteed peasant household loan requires guarantee provided by three to five peasant households, while joint-guaranteed merchant loan requires guarantee provided by a joint guarantor group consisting of three merchants.

Handling Channel

You may either go to our local branch that provides micro loan service in person to handle the business or log onto our online banking for submitting application online.

Time Limit

You may have our approval opinions in three working days at the soonest. Please contact our local branch for specific information.

Handling Procedure

File an application → field study → review and approve → sign the contract → extend the loan

Application Materials

Application Form for Petty Loan;

Original and copy of your valid identity certificate;

Your permanent residence register or evidences of living in the city for more than one year;

Other materials needed for getting a loan;

The following materials are required if you want to apply for a merchant petty loan:

1. Original and copy of business license that has passed the annual inspection (It may be exempted if the local industrial and commercial administration requires no business license for running the business); original and copy of franchise license issued by competent administrative department in case of franchise-based operation.

2. Certificate of property ownership or leasing contract (agreement) of the operating premise. If you cannot provide such legal document, a third party should be engaged to confirm the owner-lessee relationship. If there is no certificate of property ownership in rural areas, it may be exempted.

Service Features

Convenience, quickness, fast loan review and approval process, and approval results available in three working days at the soonest

“Sunshine Credit”: no any other surcharges except for lending interests;

“Incentives for repayment on time”: if you repay on time, you will have chance of interest exemption. You have two chances at most for one-year loan.

Tips

If you want to apply for a secured loan, you should go to our branch together with your guarantor. If you want to apply for a joint-guaranteed loan, you have to go to our branch together with all the members of the joint guarantor group.

Information above is only for your reference. In case of any change, please refer to our local branch for details. To save your time, please contact the local PSBC branch for particulars before you go through relevant formalities.