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 CCB, in which a credit line will be specified. Before the contract expires, the borrower may use the credit on a revolving basis, and thus does not need to sign multiple loan contracts.

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, and you do not need to sign a new contract for each loan, thus benefiting from the simplicity of loan procedures, and the efficiency and flexibility of loan usage.

The process is as follows:

1. Application. When you file an application for credit line loans, you shall provide the operations permit; institutional code certificate; legal representative identification certificate; loan certificate; financial statements and auditing reports verified by a treasury department or a CPA firm for the previous three years and the previous month (if the business is less than three years old, you shall provide all available financial statements); tax registration certificate; corporate contract or charter; list of directors, executives, and financial managers, and a sample of their signatures. If the application is made by an authorized agent, the original copy of the legal representative’s authorization letter must be provided; if you are a limited liability company, joint-stock company, joint venture or contractor company, documents that indicate the board of director’s or the contracting organization’s consent to the application must be provided; you shall provide documents concerning the guarantor and other documents required by CCB.

2. Signing contracts. If the CCB approves the loan, it will sign a “RMB Credit Line Loan Contract” and a guaranty contract with the client.  If the CCB does not approve the loan, it will return the application documents to 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, purchase insurance for the mortgaged property, 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, it will send you a “RMB Credit Line Use Notification.” With this notification, you may withdraw funds and does not need to sign a separate loan contract.

5. Repayment. You shall repay the loan as specified in the contract.

We may negotiate on the interest rate for this type of loans according to the rules set by PBC.