Measures for the Administration of Personal Housing Loans

Chapter I: General Provisions

　　Article 1 In order to support urban residents to purchase ordinary housing for their own use, standardize the management of personal housing loans, and safeguard the legitimate rights and interests of both borrowers and borrowers, these measures are formulated in accordance with the Law of People's Republic of China Commercial Banks, the Law on People's Republic of China Guarantees and the General Principles of Loans.

　　Article 2 Personal housing loan (hereinafter referred to as "loan") refers to the loan issued by the lender to the borrower for the purchase of ordinary housing for self-use. When a lender issues a personal home loan, the borrower must provide a guarantee. If the borrower fails to repay the principal and interest of the loan when due, the lender has the right to dispose of its collateral or pledge in accordance with the law, or the guarantor shall be jointly and severally liable for the repayment of the principal and interest.

　　Article 3 These Measures shall apply to commercial banks and housing savings banks established with the approval of the People's Bank of China.

Chapter II Loan Objects and Conditions

　　Article 4 The object of the loan shall be a natural person with full capacity for civil conduct.

　　Article 5 The borrower shall meet the following conditions at the same time:

　　1. Have a permanent urban residence or valid residence status;

　　2. Have a stable job and income, have good credit, and have the ability to repay the principal and interest of the loan;

　　3. Have a contract or agreement for the purchase of housing;

　　4. For those who do not enjoy the housing purchase subsidy, no less than 30% of the total price of the purchased housing shall be used as the down payment for the purchase of the house; 30% of the part borne by the individual as the down payment for the purchase of the house is entitled to the housing purchase subsidy;

　　5. Assets approved by the lender as collateral or pledge, or units or individuals with sufficient solvency as guarantors;

　　6. Other conditions stipulated by the lender.

　　Article 6 The borrower shall provide the following information to the lender:

　　1. Identity documents (referring to resident ID cards, household registration books and other valid residence documents);

　　2. Proof of the borrower's family's stable economic income;

　　3. A letter of intent, agreement or other approval document for the purchase of housing contract in accordance with the regulations;

　　4. A list of collateral or pledges, a certificate of ownership, and a certificate of consent of the person with the right to dispose of the mortgage or pledge; Proof of collateral valuation issued by the competent authority; The guarantor agrees to provide a written document of the guarantee and the guarantor's credit certificate;

　　5. To apply for a housing provident fund loan, a certificate issued by the housing provident fund management department is required;

　　6. Other documents or materials required by the lender.

Chapter III Loan Procedures

　　Article 7 The borrower shall apply for a loan directly to the lender. The lender shall give a formal reply to the borrower within three weeks from the date of receipt of the loan application and the required materials. After the lender approves the loan, it will issue a housing loan to the borrower in accordance with the relevant provisions of the General Principles of Loans.

　　Article 8 The amount of the loan granted by the lender shall not be greater than the value of the housing to be purchased as assessed by the real estate appraisal agency.

　　Article 9 If an application is made for the purchase of a housing provident fund loan, after the loan application is approved, the lender shall transfer the funds to the account opened by the seller in the bank by transfer according to the time agreed in the loan contract. The maximum loan amount of the housing provident fund shall not exceed twice the amount of the housing provident fund paid by the borrowing family member within the retirement age.

Chapter 4 Loan Term and Interest Rate

　　Article 10 The lender shall, according to the actual situation, reasonably determine the term of the loan, but the maximum shall not exceed 20 years.

　　Article 11 The borrower shall formulate a plan for repayment of principal and interest with the lending bank, and if the loan term is less than one year (including one year), the principal and interest shall be repaid in a lump sum at maturity, and the principal shall be repaid with interest; If the loan term is more than 1 year, the principal and interest of the loan shall be repaid on a monthly basis.

　　Article 12 The interest rate of personal housing loans issued with credit funds shall be reduced according to the statutory loan interest rate (excluding floating). That is, if the loan term is less than 1 year (including 1 year), the statutory loan interest rate of less than half a year (including half a year) shall be implemented; If the term is 1 to 3 years (including 3 years), the statutory loan interest rate of 6 months to 1 year (including 1 year) shall be implemented; If the term is 3 to 5 years (including 5 years), the statutory loan interest rate of 1 to 3 years (including 3 years) shall be implemented; If the term is 5 to 10 years (including 10 years), the statutory loan interest rate of 3 to 5 years (including 5 years) shall be implemented; If the term is more than 10 years, the statutory loan interest rate shall be appropriately increased on the basis of 3 to 5 years (including 5 years), and the maximum increase shall not exceed 5%.

　　Article 13 The interest rate of personal housing loans issued by the housing provident fund shall be implemented on the basis of the interest rate of the three-month lump sum deposit. If the loan term is 1 to 3 years (including 3 years), 1.8 percentage points will be added; if the term is 3 to 5 years (including 5 years), add 2.16 percentage points; if the term is 5 to 10 years (including 10 years), add 2.34 percentage points; if the term is 10 to 15 years (including 15 years), add 2.88 percentage points; If the term is 15 to 20 years (including 20 years), 3.42 percentage points will be added.

　　Article 14 If the term of a personal housing loan is less than one year (including one year), the contract interest rate shall be implemented, and the interest shall not be calculated in stages in case of adjustment of the statutory interest rate; If the loan term is more than one year, the new interest rate regulations will be implemented according to the corresponding interest rate level starting from the beginning of next year in case of statutory interest rate adjustment.

Chapter V: Surrender

　　Article 15 The collateral for loans shall comply with the provisions of Article 34 of the Guarantee Law of the People's Republic of China. Article 37 of the Guarantee Law of the People's Republic of China stipulates that property that cannot be mortgaged shall not be used as collateral for loans.

　　Article 16 If the borrower uses the purchased house for self-use as collateral for the loan, the full value of the house must be used as collateral for the loan.

　　Article 17 Where real estate is used as collateral, the mortgagor and the mortgagee shall sign a written mortgage contract and go through the mortgage registration formalities with the departments prescribed by the local people's government at or above the county level before making the loan. The relevant content of the mortgage contract shall be determined in accordance with the provisions of Article 39 of the People's Republic of China Security Law.

　　Article 18 The borrower shall take proper care of the mortgaged property during the mortgage period, and shall be responsible for repairing, maintaining and ensuring that it is intact, and shall be subject to the supervision and inspection of the lender at any time. The lender shall not dispose of the collateral before the expiration of the mortgage period.

　　Article 19 During the mortgage period, the mortgagor shall not re-mortgage or lease, transfer, sell or give away the collateral without the consent of the lender.

　　Article 20 The mortgage contract shall take effect from the date of registration of the collateral and shall terminate when the borrower repays all the principal and interest of the loan. After the termination of the mortgage contract, the parties shall release the mortgage right created in accordance with the contract. If real estate is used as collateral, when the mortgage is released, the mortgage cancellation registration procedures shall be completed at the original registration department.

Chapter VI Pledges and Guarantees

　　Article 21 If the pledge is adopted, the pledgor and the pledgee must sign a written pledge contract, and if the People's Republic of China Security Law stipulates that registration is required, registration formalities shall be completed. The relevant content of the pledge contract shall be implemented in accordance with the provisions of Article 65 of the Guarantee Law of the People's Republic of China. The effective date shall be implemented in accordance with the provisions of Articles 76 to 79. The pledge contract shall be terminated when the borrower has repaid all the principal and interest of the loan.

　　Article 22 The lender shall not dispose of the pledged property without authorization before the expiration of the pledge period. During the pledge period, if the pledge is damaged or lost, the lender shall be liable and responsible for compensation.

　　Article 23 When the borrower fails to provide the mortgage (pledge) in full, a third party approved by the lender shall provide a guarantee that the borrower shall bear joint and several liability. If the guarantor is a legal person, it must have the ability to repay all the principal and interest of the loan on behalf of the guarantor, and have a deposit account with the bank. If the guarantor is a natural person, he must have a fixed source of income, have sufficient solvency, and have a certain amount of security deposit in the lending bank.

　　Article 24 The guarantor and the creditor shall conclude a guarantee contract in writing. If the guarantor is changed, the guarantor must go through the formalities for changing the guarantee in accordance with the regulations, and the original guarantee contract shall not be revoked without the approval of the lender.

Chapter VII Housing Insurance

　　Article 25 If the real estate is used as collateral, the borrower shall go through the housing insurance or entrust the lender to handle the relevant insurance procedures before the contract is signed. During the mortgage period, the insurance policy is kept by the lender.

　　Article 26 During the mortgage period, the borrower shall not interrupt or revoke the insurance for any reason; During the insurance period, if there is damage due to the fault of the borrower outside the scope of insurance liability, the borrower shall be fully liable.

Chapter VIII Modification and Termination of Loan Contracts

　　Article 27 If the loan contract needs to be changed, it must be agreed upon by both the borrower and the borrower through negotiation, and the modification agreement shall be signed in accordance with the law.

　　Article 28 Where a borrower dies, is declared missing or loses the capacity for civil conduct, the lawful heirs of the borrower's property shall continue to perform the loan contract signed by the borrower.

　　Article 29 In the event that the guarantor loses its qualification and ability to guarantee, or in the event of merger, division or bankruptcy, the borrower shall change the guarantor and go through the guarantee formalities again.

　　Article 30 After the mortgagor or pledgor repays all the principal and interest of the loan in accordance with the provisions of the contract, the collateral or pledge shall be returned to the mortgagor or pledgee, and the loan contract shall be terminated.

Chapter IX Disposal of Collateral or Pledge

　　Article 31 Where the borrower dies, disappears or loses civil capacity within the repayment period and has no heirs or legatees, or his legal heirs or legatees refuse to perform the loan contract, the lender has the right to dispose of the collateral or pledge in accordance with the provisions of the Guarantee Law of the People's Republic of China.

　　Article 32 Where the price of the collateral or pledge is insufficient to repay the principal and interest of the loan, the lender shall have the right to recover from the debtor; If the amount exceeds the amount to be repaid, the lender shall return it to the mortgagor or pledgee.

　　Article 33 The mortgagee shall have the priority right to be compensated for the price obtained from the auction of the State-owned land use right after paying the amount equivalent to the land use right transfer fee payable in accordance with the law.

　　Article 34 In the event of a dispute over a loan contract, the borrower and the borrower shall resolve it through negotiation in a timely manner, and if the negotiation fails, either party may apply for arbitration or file a lawsuit with the people's court in accordance with the law.

　　Article 35 Where the borrower falls under any of the following circumstances, the lender shall pursue the borrower's liability for breach of contract in accordance with the relevant provisions of the General Rules for Loans of the People's Bank of China:

　　1. The borrower fails to repay the principal and interest of the loan on time;

　　2. The borrower provides false documents or materials, which has caused or may cause loan losses;

　　3. Without the consent of the lender, the borrower demolishes, sells, transfers, donates or re-mortgages the property or rights and interests of the mortgaged or pledged rights;

　　4. The borrower changes the purpose of the loan without authorization or misappropriates the loan;

　　5. The borrower refuses or obstructs the lender from supervising and inspecting the use of the loan;

　　6. The borrower signs a contract or agreement with other legal persons or economic organizations that is detrimental to the rights and interests of the lender;

　　7. The guarantor violates the guarantee contract or loses the ability to bear joint and several liability, the collateral is insufficient to repay the principal and interest of the loan due to accidental damage, and the significant reduction of the pledge affects the lender's realization of the pledge, and the borrower fails to implement the new guarantee or new mortgage (pledge) as required.

Chapter X: Supplementary Provisions

　　Article 36 Personal housing loans shall not be used to purchase luxury housing. Loans for urban residents to repair houses and build their own houses shall be implemented with reference to these Measures.

　　Article 37 The lender may, in accordance with these Measures, formulate detailed implementation rules and report them to the People's Bank of China for the record.

　　Article 38 The People's Bank of China shall be responsible for the interpretation and revision of these Measures.

　　Article 39: These Measures shall come into force on the date of promulgation. The relevant provisions that conflict with these measures shall be repealed at the same time.

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