Loan for House Construction of Farmers in Earthquake-stricken Areas

Overview
Loan for House Construction of Farmers in Earthquake-stricken Areas refers to the loan program provided by ABC to affected farmer households whose houses collapsed or were seriously damaged in the disastrous "5.12" earthquake. Loan applicants must meet the governmental subsidy conditions for reconstructing permanent residence and reconstruction planning, and have a long-term rural registered permanent residence (excluding urban affected residents and those affected farmer households meeting the conditions of the relief objectives of the civil administration department) to build or buy the first permanent residence, as subject to the planning requirements of local governments.

Features
With the support of a certain amount of credit funds, the loan can solve affected farmer households' temporary shortage of capital in reconstruction, moving, or housing settlement, and assist them in restoring production and rebuilding a homestead. This loan features are as follows:
1. Preferential loan rate. The lower limit executes 0.6 times benchmark interest rate, and the upper limit executes the benchmark interest rate of the PBOC without floating upward. Within the above range, the actual interest rate will be determined according to risk profile and mode of guarantee.
2. Flexible mode of repayment. Repayment may be made monthly, quarterly, and so on. ABC may grant a 1-year grace period before payment begins on the loan, depending upon the farmers' actual income. Within the grace period, farmers would pay only interest, but not principal.
3. Diversified modes of guarantee. Farmers may apply for this loan by means of mortgage, pledge, guaranty, and joint guaranty of farmer households. Unsecured loans may be extended to farmer households without bad credit record before the earthquake disaster, and who have long-term customer relationship with ABC, strong solvency, an annual per capita income of over 50% higher than the farmers' per capita income in their county, and good or better credit rating.
4. Preferential credit program. We will provide preferential guarantee for the loan for housing construction of affected farmers who meet the conditions and requirements of the loan objective.

Procedures
Loan flow: 

• Affected farmer households shall file a written application to ABC. Then, after the confirmation of their village and township government, they shall handle the loan with the nearest village and township outlet of ABC. The following materials must be submitted:
• Family register, or household register certificate provided by the police station at the place of domicile;
• Certificate of being listed as a house construction subsidy objective, provided by a governmental financial department;
• Description about the amount, source and method of family income before disaster, and related certification materials, which shall be provided by the Village Committee;
• Production and operation plan or migration employment plan and loan repayment plan after disaster;
• Letters of commitment from other major family members on undertaking joint and several responsibilities for repayment of the loan for house construction (commitments may be endorsed on the written application);
• Provide asset mortgage (land use right, forestry right, housing ownership, and farmer households' newly built house, with certificate of ownership issued) or joint guaranty of multiple farmer households and guarantee company's guarantee opinions and plans.