What is fixed asset loan product definition and attribute introduction

1. Product definition

Fixed asset loan is a bank’s way of solving the funding needs of enterprises’ fixed asset investment activities. The loans issued are mainly used for medium and long-term principal loans for the construction, purchase and renovation of fixed asset projects and the construction of corresponding supporting facilities.

Enterprise fixed asset investment activities include: capital construction, technological transformation, development and production of new products and other activities, as well as related house purchase, engineering construction, technical equipment purchase and installation, etc.

2. Important Attributes

1. Loan currency: There are two types: RMB and RMB.

2. Loan term: The loan term is mainly determined by the borrower's production and operation cycle, project construction needs, repayment ability and the bank's credit balance capacity, etc., and is determined by the borrower and the lender through negotiation. Generally no more than 8 years.

3. Loan interest rate: The medium and long-term loan interest rate issued by the People's Bank of China shall be implemented. The interest rate shall be fixed for one year according to the loan contract, that is, within one year from the effective date of the contract, it shall be based on the interest rate agreed in the loan contract. In case of The interest rate adjustment remains unchanged; after one year, it will be adjusted according to the current interest rate and the new interest rate will be implemented.

3. Product Features

Fixed asset loans are characterized by long terms and large loan amounts, which can meet your fixed asset investment needs for fixed asset projects.

IV. Applicable objects

Enterprise legal persons, institutional legal persons and other economic organizations that have been approved and registered by the industrial and commercial administration authorities (or competent authorities) and implement independent accounting.

5. Application conditions

1. Hold an enterprise business license that has passed the annual inspection by the industrial and commercial administration department, and the legal person should hold a legal person qualification certificate;

2. Hold a loan certificate/card issued by the People's Bank of China;

3. The borrower applicant has good economic benefits, good credit status, strong repayment ability, and a sound management system;

4. Implement the guarantee recognized by the bank;

5. Open a basic account or general deposit account in the bank;

6. The fixed asset loan project complies with the national industrial policy and credit policy;< /p>

7. Have capital at a proportion specified by the state;

8. The project has been approved by relevant government departments, the supporting conditions are complete, and the sources of imported equipment and materials are secured.

9. To apply for a foreign exchange fixed asset loan, you must hold an import certificate or registration document.

VI. Application materials

Credit business application form; basic information of the borrower, qualification documents, loan certificate (card), authorization letter, etc.; principal person in charge of the board of directors, financial officer List of persons in charge and signature samples, board of directors resolutions, etc.; tax registration certificate from the tax department that passed the annual inspection; financial statements and reports for the past three years and the latest period that have been audited or approved by the competent authority; construction project materials, including the project proposal Relevant background materials, self-raised funds and other construction funds, production fund raising plans and supporting documents for the implementation of funding sources, project proposals and approval documents, feasibility study reports and approval documents, project budget information, project preliminary preparation and completion reports and Relevant information, construction project planning license; guarantee materials, including the guarantor's certification documents, financial information, guarantee commitment documents, mortgage (pledge) list and ownership certificate; other information required by the bank.

7. Application Procedure

1. Submit the application. The borrower submits a loan application to the bank and relevant information required by the bank, including business license, company articles of association, financial reports for the past three years, project establishment and approval documents, project economic benefit analysis, repayment plan, etc.

2. Pre-loan evaluation. The bank conducts pre-loan investigation and evaluation, investigates the borrower's credit rating and the legality, safety, and profitability of the loan, verifies the collateral, pledges, and guarantors, and forms evaluation opinions.

3. Sign the contract. If the bank deems it feasible after investigation and approval, the two parties will reach an agreement on the terms of the loan contract, mortgage contract and guarantee contract, and the relevant parties will sign the contract.

4. Implement guarantees. After the borrower signs a loan contract with the bank, it must implement third-party guarantees, mortgages, pledges and other guarantees, and handle procedures such as guarantee registration, notarization or collateral insurance, and deposit of pledges with the bank.

5. Obtaining loans. Once the borrower completes the relevant procedures before the bank issues a loan, the loan contract will come into effect. The bank can issue a loan to you, and you can use the loan according to the purposes specified in the contract.

8. Charging standards

All loan charges are agreed upon in the contract.

Advantages

Fixed asset loans are relatively stable and fixed. Loan repayment plans and long-term loans can be included in the budget.

Can assist in purchasing assets that would otherwise be unaffordable.

The purchased asset will become collateral for the loan.

Disadvantages

Long-term loans have higher interest rates than short-term loans.

Loan applications are often very detailed. Lenders require a lot of details about the purchase and the financial status of the business.

If the loan contract is breached, the entire loan may be required to be repaid immediately.

If the loan cannot be repaid, the lender may seize the assets and paralyze the business.

What is Bank of China’s fixed asset loan?

Fixed asset loans refer to the principal loans issued by the lender to enterprises (institutions) legal persons or other organizations that can be borrowers as stipulated by the state for the borrower's fixed asset investment.

The above content is for your reference, please refer to actual business regulations.

What are "fixed asset loans and working capital loans"?

Fixed asset loans are loans issued by banks to enterprises for investment in fixed assets. Before the reform of the economic system, my country's banks only extended loans to enterprises' working capital. State-owned enterprises' fixed assets were allocated by the state finance, while collective enterprises' fixed assets were self-financed.

In order to meet the needs of economic system reform, starting in 1979, the People's Bank of China began to issue short- and medium-term equipment loans for enterprises to purchase key equipment with low investment and quick results.

Working capital loans are loans issued to meet the short-term capital needs of producers and operators during the production and operation process and to ensure the normal progress of production and operation activities. According to the loan term, it can be divided into short-term working capital loans with a term of less than one year and medium-term working capital loans with a term of one to three years.

Extended information:

Fixed asset loans are relatively stable and fixed. Loan repayment plans and long-term loans can be included in the budget. Can assist in purchasing assets that would otherwise be unaffordable. The purchased asset will become collateral for the loan.

According to their different purposes, working capital loans also include other types of loans of securities companies, mainly including real estate mortgage loans, certificates of deposit, guaranteed loans and credit loans, etc., used to solve the purchase of fixed assets of securities companies and the decoration of business departments. Wait for the company's development needs.

Working capital loans are divided into two types: RMB and RMB. The loan period is mainly determined by the borrower and the lender through negotiation based on the borrower's production and operation cycle, repayment ability and the lender's financial strength. It generally does not exceed 1 year, and the maximum period under special circumstances does not exceed 3 years (inclusive).