According to Article 36 of People's Republic of China (PRC) Commercial Bank Law, borrowers should provide loan guarantees to commercial banks. Commercial banks should strictly examine the repayment ability of guarantors, the ownership and value of collateral, and the feasibility of realizing collateral. After examination and evaluation by a commercial bank, it is confirmed that the borrower has a good credit standing and can repay the loan, and no guarantee may be provided.
Article 37 A commercial bank shall sign a written contract with the borrower when granting loans. The contract shall stipulate the type, purpose, amount, interest rate, repayment period, repayment method, liability for breach of contract and other matters that both parties think need to be agreed.
Article 38 A commercial bank shall determine the loan interest rate according to the upper and lower limits of the loan interest rate stipulated by the People's Bank of China.
Extended data:
"Measures for the Administration of Individual Housing Loans" Article 12 The interest rate of individual housing loans issued by credit funds shall be lowered according to the statutory loan interest rate (excluding floating). That is, if the loan term is less than 1 year (including 1 year), the legal loan interest rate for less than half a year (including half a year) shall be implemented; If the term is 1 to 3 years (including 3 years), the legal 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 legal loan interest rate 1 to 3 years (including 3 years) shall be implemented; If the term is from 5 years to 10 year (inclusive), the legal loan interest rate of 3 years to 5 years (inclusive) shall be implemented; If the term is more than 10 year, it will rise appropriately on the basis of the legal loan interest rate of 3 to 5 years (including 5 years), and the maximum floating rate will not exceed 5%.
Baidu Encyclopedia-People's Republic of China (PRC) Commercial Bank Law