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Multi-household Joint Guaranty Loan for Small Business

The Multi-household Joint Guaranty Loan for Small Business refers to a loan extended to small business corporation customer with membership in a joint guaranty group, with joint guaranty group members undertaking joint and several guarantee responsibilities if the borrower fails to repay principal and interest according to regulations.
At present, only Shandong Branch of ABC offers this loan.

The loan product's main feature is that it provides financing services for small business customers without requiring collateral of a mortgage on their real estate. Instead, the loan's security is guaranteed by members of the joint guaranty group. ABC will extend such loans to quality growing small business customers only after diligently investigating their operating status, the overall credit status of small business customers in the joint guaranty group, and their development prospect within the overall economy of the region where the small business customers are located and do business.
The product is applicable to regions with a relatively good financial ecological environment (credit environment). By virtue of the characteristics and advantages of mutual familiarity, understanding, convenient mutual help and supervision of small business customers in the same joint guaranty group, the product cancels the regulation that joint guaranty group members must pay a certain amount of security deposit when applying for financing. This innovative approach lowers the financing costs of small business customers, promotes the enhancement of small business customers' overall economic strength, and improves the regional credit environment.

1. Determine the specific region where Multi-household Joint Guaranty Loan for Small Business can be handled. Small enterprises applying for Multi-household Joint Guaranty Loan shall be located in specific regions approved by us, including large-scale special markets, industrial parks, and special industrial cluster zones. If there is a trade society for the industry of small business customers in the specified regions, small enterprises applying for this service shall become members of the trade society.
2. Credit rating of small business customers. Small business customers applying for Multi-household Joint Guaranty Loan shall have a credit rating of A+ or above, according to our measures for credit rating of small business customers.
3. Qualification examination and identification of joint guaranty group. Small enterprises applying for Multi-household Joint Guaranty Loan shall establish a joint guaranty group. Here, joint guaranty group indicates a mutual-assistance organization established by over 4 (included) small business corporate customers from the above-mentioned specific regions and trade societies meeting our access requirements. Furthermore, such small business corporation customers shall have signed the Joint Guaranty Agreement based on equality, free will, mutual trust, mutual assistance, and mutual benefit, and, along with the other group members, undertake joint and several guaranty responsibilities together for the one joint guaranty group member applying for the loan. Each small business customer may join only one joint guaranty group, and there shall be no connected relationship between small business customers.
4. After the above-mentioned investigation is completed and application details are confirmed, the loan will be extended according to the methods and procedures applicable to a general working capital loan.

Application Channels
All authorized and sub-authorized operating institutions may handle the business.

Multi-household Joint Guaranty Loan avoids the expenses for assets appraisal and registration proclamation during the application for a real estate mortgage loan, with the risks and benefits co-existing upon everyone throughout the term of the loan. When applying for a Multi-household Joint Guaranty Loan, customers shall select and determine joint guaranty group members prudently, and be sure to know each other well and clearly so as to ensure mutual trust, mutual support, and risk sharing.

Note: Please contact your local branch for detailed information about the service.

Customer Service Center : 95599


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