Corporate Operations > Corporate Credit > New Business(1) RMB Credit Line Loans?
?
If you company borrows loans frequently and is sensitive to financial cost, you may apply for RMB credit line loan.? You need to sign a general credit line loan contract with ?JNB, in which a credit line will be specified. Before the contract expires, the borrower may use the credit on a revolving basis.
Each loan arising under the contract is regarded as a separate working capital loan for the purposes of determining the loan term and interest rate.
The flexibility in the usage is one of the most prominent features of the RMB credit line loan. On the one hand, you may use the credit line on a revolving basis before it expires, i.e. you may take out multiple loans from the bank as long the total sum of the loans does not exceed the credit limit; on the other hand, before the contract expires, each loan has a maturity date that is independent of the contract expiration date, thus benefiting from the simplicity of loan procedures, and the efficiency and flexibility of loan usage.
The process is as follows:
1. Application.
2. Signing contracts. If the JNB approves the loan, it will sign a Credit Line Loan Contract and a guaranty contract with the client.
3. Guaranty. After signing the contract, you shall provide a third-party guarantor, mortgages or pledges. You need to complete the registration and notarization of the mortgage, and deposit the pledged rights with the bank.
4. Loan disbursement. When you complete the above procedures, the contract will come into effect. You may use the credit line at any time, provided that it files an Application for Using the RMB Credit Line.? If the bank approves the application, you may withdraw funds and after? signing ?a separate loan contract.
