China Banking Regulatory Commission, "Administrative Measures for Auto Loan (Draft for Soliciting Opinions)"


On January 21st, the China Banking Regulatory Commission’s Non-bank Financial Institution Supervision Department issued the “Announcement on Soliciting the Opinions on the Auto Loan Management Measures (Draft for Comment)” to the public, and announced the “Administrative Measures for Auto Loan (Draft for Soliciting Opinions)”. 》, The following is the full text:

Car Loan Management Measures (Draft for Comment, January 20, 2004)

Chapter 1 General Provisions

Article 1 To promote the healthy development of auto loan business, regulate the management of automobile loan business, prevent the risk of auto loan, and protect the legal rights and interests of both borrower and loaner, according to "The People's Republic of China Commercial Bank Law", "The People's Republic of China Contract Law" and "The Chinese People The "Republic of China Guarantee Law," "Loan Rules," etc., establish these Measures.

Article 2 The term "auto loans" as used in these Measures refers to the loans issued by the lender to the borrower for the purchase or sale of automobiles (including used cars), including personal car loans, dealer car loans and fleet car loans.

Article 3 The term "lender" as mentioned in the present Measures refers to the commercial banks, urban and rural credit cooperatives and non-operated auto loan businesses that have been legally established within the territory of the People's Republic of China, are approved by the banking regulatory authority of the State Council, and are authorized to operate RMB loans. Bank financial institutions.

Article 4 "Self-use car" as mentioned in the present Measures refers to a car purchased by a borrower himself through a car loan; a commercial vehicle is a vehicle purchased by a borrower for commercial operation to obtain economic income, including various transportation vehicles, construction machinery vehicles, etc. .

Article 5 The method of calculating the interest rate and the method for calculating the interest rate of a car loan shall be negotiated between the borrower and the lender in accordance with the People's Bank of China Interest Rate Policy.

Article 6 The loan term of a car loan may not exceed 5 years at the longest, and the loan term for a single car inventory loan may not exceed one year. Car loans that meet the conditions for loan extension can be renewed once, but the extension period cannot exceed half of the original loan term.

Chapter II Personal Car Loans

Article 7 The term "personal auto loans" as used in these Measures refers to the loans issued by the lender to individual borrowers for the purchase of automobiles, including personal auto consumption loans and personal commercial vehicle loans.

Article 8 A lender shall establish a credit rating system for individual borrowers, and carefully determine the credit rating of individual borrowers based on the following conditions of individual borrowers:

(a) The borrower’s occupation, income, residence and stability;

(B) Borrower's Repayment Ability and Credit History

(iii) Family monthly income level and its stability;

(4) Other factors that the lender thinks necessary.

Article 9 The lender shall comprehensively consider the following factors and reasonably determine the loan conditions for the borrower, including the loan amount, term, interest rate, and the principal and interest payment method, etc.:

(1) The credit rating of the borrower by the lender;

(b) loan guarantees;

(iii) the performance and use of vehicles purchased from borrowing;

(d) Development of the automotive industry and supply and demand in the automotive market.

Article 10 The lender must establish the borrower's credit file and update it in a timely manner. The borrower's credit file should at least include the following:

(a) The borrower's name, address and effective contact details;

(b) The borrower's income level and credit status;

(iii) The model, price and purpose of the purchased car;

(iv) The amount, term, interest rate, repayment method and guarantee of the loan;

(5) The borrower obtains loans from other financial institutions;

(6) Loan collection records;

(7) Other information needed to guard against loan risks.

Article 11 When a lender issues a commercial vehicle loan, it shall add the development status of the commercial vehicle operation industry, the depreciation of the commercial vehicle, and the insurance status to the borrower's credit file.

Chapter III Dealer Auto Loans

Article 12 The lender shall establish an independent credit file for each distributor borrower and update it in a timely manner. The dealer credit file should contain at least the following contents:

(1) The name of the dealer, legal representative and business address;

(B) copies of various business licenses;

(3) Dealers purchase insurance, commercial credit and financial status;

(4) The loan card (number) issued by the People's Bank of China;

(5) The type, price and purpose of the purchased or sold car;

(6) loan guarantee status;

(7) Other information required to prevent loan risks.

Article 13 A lender shall establish a dealer credit rating system and strengthen follow-up monitoring. The credit rating and loan conditions are carefully determined based on the following factors.

(a) The situation reflected by dealer credit files;

(2) Credit information of senior management personnel of distributors;

(iii) The performance of the customers introduced by the dealers;

(d) Other factors that should be considered.

Article 14 The loan amount of the lender's car inventory for a single dealer shall be based on the average inventory of the dealer for a period of time, and the specific period shall be determined by the dealer inventory turnover. Vehicle inventory loans should be approved, issued and managed on a case-by-case basis.

Article 15 The lender shall periodically review the distributor’s car inventory and analyze the dealer’s financial statements, etc. to conduct a credit review on the distributors, and depending on the review results, timely adjust the dealer credit rating, loan terms, and inventory frequency.

Article 16 When a lender grants a loan to a car dealer, the dealer must provide a valid guarantee, and the car loan shall be separately accounted and managed separately.

Chapter IV Car Loans

Article 17 The term "construction loan" as used in these Measures refers to the loan issued by the lender to other entities such as the legal person organization other than the dealership to purchase the automobile. Team loans include fleet car loans and fleet commercial vehicle loans.

Article 18 The lender shall establish a fleet credit rating system and an independent credit profile with reference to the distributor's credit rating system to strengthen the monitoring of credit risk.

Article 19 The lender shall pay attention to the method of estimating the salvage value of the lending institution to the legal person institution engaged in financial leasing and operating leasing business, and prevent the residual value from excessively estimating the risk to the lender.

Chapter 5 Risk Management

Article 20 The maximum amount of lenders' personal auto consumption loans and self-owned vehicle loans granted by lenders must not exceed 80% of the market price (excluding various additional taxes, fees, and premiums) purchased by the borrower; For commercial vehicle loans, the proportion must not exceed 70%.

The term “auto market price” referred to in this paragraph refers to the lower of the actual transaction price of the auto market, the price announced by the auto manufacturer (new car) or the appraised value of the lender (used car).

Article 21 The lender grants personal and fleet commercial vehicle loans. Depending on the actual situation, the borrower shall require the borrower to provide effective guarantees other than the auto mortgage or the automobile dealer to provide necessary guarantees.

Article 22 A lender shall establish a database of used car market information and a residual value estimation system for used cars. The maximum amount of loans granted by a lender to a used car may not exceed 70% of the used car market valuation.

Article 23 The lender shall accept the application for auto loans directly, improve the separation and separation system for loans, strengthen pre-lending review and post-lending tracking and collection.

Article 24 The lender shall establish a personal loan portfolio monitoring system and conduct regular inspections and evaluations of the portfolio loan. According to the inspection and evaluation results, the risk level of the loan portfolio is adjusted according to the internal loan risk classification principle.

Article 25 The lender shall establish an early warning system for auto loans, set early warning indicators such as the proportion of overdue loans, proportion of bad debt reserves to total loans, set early warning standards, and adopt measures such as re-evaluating the loan approval system after exceeding the warning standards.

Article 26 The lender shall establish an overdue loan classification processing system and a prudent loan loss preparation system, and make corresponding risk preparations for the different situations of overdue loans and losses, and take effective preventive measures in time.

Article 27 When a lender grants a car mortgage loan, it shall prudently and regularly assess the value of the mortgaged property, fully consider the risk of impairment of the mortgaged property, and strictly set a ceiling on the mortgage rate.

Article 28 The lender shall establish an interest rate risk management system, strengthen the dynamic monitoring and analysis of interest rates, and effectively prevent interest rate risks through techniques such as interest rate sensitivity analysis.

Article 29 The lender shall establish the credit limit for the following types of loans, and have a good internal communication mechanism and computer systems to record the following types of loan issuance and recovery.

(i) Car loans of the same brand and model;

(b) Car loans secured by the same guarantor;

(iii) Car loans introduced by the same dealer;

(iv) Car loans issued to the same area;

(e) Other car loans with the same attributes.

Chapter VI Supplementary Provisions

Article 30 Where a lender is engaged in a car loan business in violation of the provisions of the present Measures, the China Banking Regulatory Commission and its authorized organizations have the right to rely on the "Law of the People's Republic of China on the Supervision and Administration of Banking" for the financial institution and its Related personnel punished. The People’s Bank of China has the right to recommend that the China Banking Regulatory Commission supervise and verify violations of financial institutions engaged in auto loan business.

Article 31 The Measures shall be jointly explained by the People's Bank of China and the China Banking Regulatory Commission.

Article 32 The present Measures shall come into force as of the day of the month of 2004. The Measures for the Administration of Auto Consumption Loans promulgated by the People's Bank of China in 1998 shall be abolished as of the date of implementation of these Measures.



Titanium Rod

TMT, as professional manufacture on Medical Titanium, provide ASTM F136 Ti6Al4V ELI, ASTM F67 GR1 GR2GR3 GR4 ASTM F1295 Ti6Al7Nb. With outstanding and stable quality, ensure that the material meets specific mechanical and chemical requirements, as well as biocompatibility and sterility requirements.

Titanium Rod,Titanium Supplies,Medical Titanium Rod,Solid Titanium Rod

TMT INDUSTRY , https://www.tmtmedtech.com