Personal Housing Revolving Loan

The Personal Housing Revolving Loan (hereinafter "revolving loan") is a personal loan that can be withdrawn, repaid, and redrawn again for an unlimited amount of times within a specified period; it should also be within the credit limit determined based on the maximum mortgage placed on the housing financed by a personal housing loan you have obtained from ABC or any other financial institutions.

Benefits

1. Quick access to loans: Once approval is granted, the loan can be withdrawn and repaid at any time upon maturity. A single withdrawal within the credit limit is directly approved by the authorized approver of ABC. 

2. Interest preference: The revolving nature allows long use of short-term loans at low interest rate. Loans within the credit limit, for home improvement and other consumption purposes, are eligible for a discount up to 10% against the benchmark interest rate.

3. Long term of credit limit: The term of credit limit is up to 5 years, renewable upon maturity. 

4. Long term of individual loans: The term of an individual loan is up to 30 years.

Qualifications of the Borrower

1. Natural person who has full capacity for civil conduct, including citizens in the Chinese mainland as well as Hong Kong, Macao, Taiwan and foreign people who have residence permit in the Chinese mainland and meet relevant policies;

2. Up to 60 years of age;

3. Good credit record;

4. Stable income streams, meet requirements of external regulators and the head office on the ability to repay;

5. The collateral may be either completed or uncompleted housing. If the collateral is uncompleted housing, the borrower must obtain the title deed for the housing unit before applying for the housing loan within the revolving credit limit;

6. Other conditions required by ABC.

Term, Interest Rate and Limit

1. Individual loans within the term of the revolving credit limit are up to 30 years;

2. Interest rate is the rate of the same class and period prescribed by the PBOC, adjustable upwards or downwards according to particular circumstances, not less than 90% of the corresponding benchmark rate.

3. The loan amount is up to 70% of the collateral value;

• Maximum mortgage amount = collateral value × mortgage rate;

• Revolving credit limit = maximum mortgage amount – outstanding amount of the initial personal housing loan;

• Revolving credit limit increases as the outstanding amount of the initial personal housing loan decreases during the term of the revolving credit limit. 

Procedures

The borrower files an application and submits relevant documents →ABC enters into the maximum mortgage contract and the loan contract after approval is given → ABC issues the loan → The borrower repays the loan upon maturity

Documents Required for the Application

1. Valid identity certificate;

2. Certificate of household property and income;

3. Certificate and statement of revolving loan purposes;

4. Other documents required by ABC.

Repayment Options

Loans with a term of one year or less and within the revolving credit limit may be repaid in installments or in as a lump-sum upon maturity; loans with a term of more than one year are repaid in installments.

If more than one loan is drawn, the borrower may prepay any one or more loans as long as all loans are repaid normally.

Application Channels

Authorized outlets of ABC.