Personal Auto Loans

Target Clients for Personal Auto Loans

Requirements for Personal Auto Loans

Terms and Interest of Personal Auto Loans

Personal Auto Loan Amounts

Procedures for Auto Loans

Personal Auto Loan Repayment

CCB offers personal auto loans in the RMB to help finance auto purchases.

Target Clients

Citizens who are 18 years old or above, and who have full legal capability; 

Citizens who have legal identification, and who have permanent residency or valid permission to reside.

Requirements for Personal Auto Loans

The applicant must have a stable job and income that is sufficient to support the payment of principal and interest;

The applicant must provide security acceptable to CCB.

Terms and interest of Personal Auto Loans

According to the creditworthiness of the client and the use of the automobile, the loan term may vary.  If the automobile is used as a taxi, for rent, or for other passenger transportation, the loan term may be up to five years; if the automobile is used to transport cargos, the loan term may be up to three years.  The interest rate is set by the PBC, with adjustment permitted by the PBC.  

 Personal Auto Loan Amounts

If the client has a high standard of creditworthiness, he or she may use the purchased automobile as security and borrow up to 80% of the purchase price.

The client may pledge treasury bonds, securities, bonds for major construction projects, and CCB certificates of deposits, and borrow up to 90% of the pledged rights.

The client may offer houses, other property affixed to the land, or legally obtained right to use state-owned land as mortgaged property, and borrow up to 70% of the value of the mortgaged property.

If the installment payment insurance is purchased, the client may borrow up to 80% of the automobile purchase price. 

If a third party (other than a bank or insurance company) provides a guarantee, the loan limit is set according to the creditworthiness of the borrow (or guarantor), and must not exceed 80% of the automobile purchase price; if the automobile to be purchased is second-hand, the client may borrow up to 70% of its value.

 Procedures for Automobile Loans

Two models are available:

Model One: The client may purchase an automobile from a partner merchant of CCB, sign a purchase contract or agreement, and have the merchant file a loan application.

Model Two: The client may apply for a loan to a CCB outlet directly.  After providing security, the client may purchase a vehicle from a partner merchant of CCB.

The following documents are required for loan application:

Loan application; valid identification; statement of job and income, as well as basic family information; certificates or documents required for security; purchase contract or agreement if applying through a merchant; other criteria.

After receiving the application, CCB reviews the financial capability of the applicant and guarantor.  If the loan is not approved, CCB notifies the applicant within seven business days; if the loan is approved, CCB sets the loan limit, term and interest, and invites the borrower to provide security and sign the Automobile Loan Contract.

According to the loan agreement, CCB disburses the loan to the merchant¡¯s account.  After purchasing the car, the merchant or CCB assists the borrower in paying fees to authorities and applying for a tag.

If the borrower uses the purchased vehicle as security, during the loan term, CCB keeps the insurance policy and purchase receipt.  During the contract term, CCB reserves the right to monitor the borrower¡¯s income, the mortgaged or pledged property, and the creditworthiness and repayment capability of the guarantor.  The borrower and guarantor must facilitate the monitoring.  

 Special Notes

Multiple payment methods are available for the personal automobile loan.  If the loan term is shorter than one year (or is one year), both principal and interest may be paid as a lump sum at maturity.

If the borrower has an automatic deposit agreement with CCB, he or she may deposit the payment due into a personal demand deposit account before the payment due date (or interest settlement date), and CCB transfers the payment.

If the borrower intends to prepay the principal, he or she must notify CCB and obtain its approval.

After both principal and interest are paid, the Automobile Loan Contract is automatically terminated.  CCB cancels the mortgage registration within 20 days of contract termination, and return title and other documents to the borrower.