Beijingers will be able to get bank loans if they have good personal credit via a new service launched yesterday by the Standard Chartered Bank.?They no longer have to provide a guarantee or mortgage.
This is the first such service launched by a foreign bank targeted at the mainland personal loan market and local residents. This kind of service has been widely accepted in many mature markets. With rapid economic growth and globalization as well as rising personal incomes, China's financial services are gradually adopting international practices.
However, people must have a stable job and a pre-tax monthly income of above 3,000 yuan if they want to apply for the new service. They need to show valid ID cards and salary certification statements. If no blemish is found in personal records through thecentral bank's personal credit system, the applicant will get a bank loan ranging from 8,000 yuan to 200,000 yuan within four working days at the earliest.
Loans secured through the new service will be restricted to personal living consumption needs. Standard Chartered Bank will be entitled to revoke these loans if they are invested in the stock market or used for home purchases and/or for other purposes prohibited by the bank.
For more details, please read the full story in Chinese (http://www.financialnews.com.cn/yh/txt/2008-02/26/content_100186.htm).
(China.org.cn February 26, 2008)
