About the Product
The borrower applies to our credit center for a loan to finance its daily operations and business expansion strategy by providing a guarantee via a specialist guarantee agency approved by our credit center, which assumes joint liability for the loan.
Small enterprises that can find a specialist guarantee agency approved by our credit center to guarantee a full loan.
Acceptance Criteria for Guarantee Agencies
1) The guarantor is an independent or authorized legal entity, has completed registration and annual inspection procedures according to relevant laws and regulations, and has a valid business license that clearly defines the scope of its guarantee services;
2) The guarantor has obtained a valid loan certificate (card) from the People’s Bank of China and completed annual inspection procedures;
3) The guarantor has operated for at least two years and is free of guarantees for high-value nonperforming loans, ongoing lawsuits involving a high-value guarantee, and records for refusing to compensate for defaulted loans under its guarantee. None of its majority shareholders, effective controller, legal representative, and senior executives have defaulted on loans;
4) Its registered capital and paid-up capital are at least RMB50 million. Its monetary funds account for at least 80 percent of its paid-up capital, which is certified by a capital verification report or whose source is adequately documented. The limits on registered and paid-up capital should be raised for nongovernmental guarantee agencies;
5) The guarantee employs professionals in finance and project assessment. Its major senior executives have a minimum five years of experience in the fields of economics and finance;
6) The guarantor implements mature corporate governance and organizational structures, risk control and financial management mechanisms, and a strong and verifiable funding mechanism;
7) Its balances of guarantee liability and single-client guarantee, and risk provision mechanism comply with relevant government policies and its articles of association;
8) The guarantor is required to assist us with routine checks and reviews.
For cooperation with a guarantor that fails to meet the above requirements but a branch believes has business potential with controllable risks, refer the case to the risk control board for review, and then to head office for approval.
All the contents stated above are for your reference only. Please consult the local branch of China Merchants Bank for further information. China Merchants Bank reserves the ultimate right of interpretation for the contents in this page.