What is a fixed asset loan?
Fixed Asset Loan refers to the present loan issued by the enterprise or public utility legal person or other organization which can be the borrower according to the state regulations, which is used for the borrower's fixed asset investment. Fixed asset loans include capital construction loans and renewal and reconstruction loans.
What is Fixed Asset Loan Product Definition and Attribute Introduction
I. Product Definition
Fixed Asset Loan is a loan issued by the bank to solve the financial needs of the enterprise's fixed asset investment activities, which is mainly used for the construction of the fixed asset project, the acquisition, the renovation, and its corresponding ancillary facilities construction of the medium- and long-term principal The loan.
Enterprise fixed asset investment activities include: capital construction, technological transformation, development and production of new products and other activities and related housing purchase, engineering construction, purchase and installation of technical equipment.
Two important attributes
1, loan currency: there are two kinds of RMB and.
2. Loan term: the loan term is mainly based on the borrower's production and operation cycle, project construction needs, repayment ability and the bank's credit fund balancing ability, etc., determined by the borrower and lender consultation. Generally not more than 8 years.
3, the loan interest rate: according to the People's Bank of China issued by the medium and long-term lending rate, the interest rate according to the borrowing contract to implement a certain year, that is, from the effective date of the contract, within one year, according to the agreed interest rate of the borrowing contract, in the event of interest rate adjustments remain unchanged; full one year after the adjustment based on the prevailing interest rate, the implementation of the new interest rate.
Three, product features
Fixed asset loans are characterized by long term and large loan amount, which can meet your fixed asset investment needs for fixed asset projects.
Fourth, the applicable object
Approved by the industrial and commercial administrative organs (or the competent authorities) registration, the implementation of independent accounting enterprise legal person, business legal person and other economic organizations.
V. Application Requirements
1. Holding the business license of the enterprise which has passed the annual inspection by the administrative department for industry and commerce, and the enterprise legal person shall hold the document certifying the qualification of legal person;
2. Holding the loan certificate/card issued by the People's Bank of China;
3. The borrower applicant has good economic efficiency, good credit standing, strong debt repayment ability and perfect management system;
4, the implementation of bank-approved guarantees;
5, in the bank to open a basic account or general deposit accounts;
6, fixed asset loan projects in line with national industrial policy, credit policy;
7, with the state's prescribed proportion of capital;
8, the project by the relevant government departments for approval and approval, supporting conditions are ready, imported equipment, materials, sources of supply Implementation.
9, apply for foreign exchange fixed asset loans, must hold import certificates or registration documents.
6. Application materials
Application for credit business; basic information of the borrower, qualification documents, loan certificates (cards), authorization letters, etc.; the list and sample signatures of the main person in charge of the board of directors and the person in charge of finances, and resolutions of the board of directors, etc.; tax registration certificates of the tax authorities that have passed the annual inspection; financial statements and reports of the last three years and the latest period that have been audited or approved by the authorized institutions; construction project materials, including project documents, including project certificates or registration documents. report; construction project materials, including the relevant background materials proposed by the project, self-financing and other construction funds, production fund-raising programs and the implementation of the source of funds to prove the materials, project proposal and approval documents, feasibility study report and approval documents, project budget estimates, project pre-project preparatory completion report and related information, planning permission for the construction project; guaranteed materials, including the guarantor's supporting documents, financial information, commitment documents for guarantee, list of collateral and proof of ownership; and other information required by the bank.
VII. Application Procedures
1. Submission of Application. The borrower submits to the bank an application for the loan and the relevant information required by the bank, including business license, articles of incorporation, financial reports for the past three years, project and approval documents, project economic benefit analysis, repayment plan.
2, pre-credit assessment. The bank carries out pre-credit investigation and assessment, investigates the borrower's credit rating as well as the legitimacy, safety and profitability of the loan, verifies the collateral, pledge and guarantor, and forms an assessment opinion.
3. Signing the contract. If the bank investigation and approval is considered feasible, the two sides on the loan contract, mortgage contract, the terms of the security contract to reach agreement, the parties concerned to sign the contract.
4, the implementation of the guarantee. After the borrower and the bank signed the loan contract, the need to implement third-party guarantees, mortgages, pledges and other guarantees, for the registration of guarantees, notarization or collateral insurance, pledges deposited with the bank and other procedures.
5, loan acquisition. The borrower to complete the bank to issue loans before the relevant procedures, the loan contract will come into effect, the bank can issue loans to you, you can use the loan according to the contract.
Eight, charges
Loan charges are agreed through 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 the purchase of assets otherwise unaffordable.
Purchased assets will serve as collateral for the loan.
Disadvantages
Long-term loans have higher interest rates than short-term loans.
Loan applications are usually very detailed. Lenders require a lot of information on purchase details and business finances.
If the loan contract is breached, the entire loan may need to be repaid immediately.
If the loan is not repaid, the lender may seize assets and cripple the business.
Difference between Fixed Asset Loan and Project Loan
The differences between the two are:
1. Different Scope:
Fixed Asset Loan includes: activities such as capital construction, technological renovation, development and production of new products, and the related purchase of housing, engineering construction, purchase and installation of technical equipment.
Project financing loans include:: project operating rights, project property rights and special government support (with documentation), etc.
2, the lending institutions to examine the different contents of the loan approval:
Fixed asset loans can examine the borrower's overall repayment ability.
Project financing generally pay attention to the repayment ability of the project itself, of course, does not exclude other mortgages, guarantees and other second repayment sources.
3, the amount of different ranges:
Fixed asset loans is a big concept, while project financing is part of it.
Loans for project financing: larger amounts. For example, highways, airports, power grids, power stations, nuclear power, reservoirs, etc. usually use project financing side of a single equipment purchase, etc. generally use fixed asset loans.
Fixed asset loans are a big concept of which project financing is a part.
Expanded Information:
Fixed Asset Loans and Project Financing Loans used in the form of:
1, the form of BOT: BOT is BOT form: BOT refers to the project loan to take "construction - operation - transfer (handover) mode;
2, TOT form: TOT refers to the project loan to take "transfer transfer - operation - transfer (handover) mode.
Fixed-asset loans are loans issued by banks for investment in fixed assets. Before the reform of the economic system, China's banks only on the working capital of enterprises to issue loans, fixed assets of state-owned enterprises by the state financial allocations, the fixed assets of collective enterprises are self-financing. In order to meet the needs of the economic system reform, from 1979, the People's Bank of China began to issue short-term equipment loans for enterprises to add a small investment, quick results of the key equipment. 1982, short-term equipment loans were renamed "technological transformation loans. Financial allocations into construction bank loans. More than a year's pilot proved that this reform measures to make construction funds from the non-reimbursable use of reimbursable use, under the guidance of the national plan, play the role of economic organizations and economic instruments, the economic responsibility, economic power and economic interests combined to mobilize the enthusiasm of all parties.
What is a fixed asset loan? What are the characteristics
Fixed asset loans are loans issued by banks to solve the financial needs of enterprises' fixed asset investment activities, mainly used for the construction of fixed asset projects, acquisition, renovation, and their corresponding supporting facilities construction of medium- and long-term this loan. The arrangement of fixed asset loan projects and loan plans must be based on the project plans and credit plans approved by the state, and in accordance with the stipulated procedures and authorizations, the first assessment, and then decision-making. Fixed asset loan program management principle is "unified plan, hierarchical management, target block, classification operation, to ensure that the focus of the preferential tilt". Article XVII of the lender should be in the contract with the borrower to agree on the conditions of withdrawal and payment of loan funds to accept the lender's management and control of the loan use-related provisions, the conditions of withdrawal should include the same proportion as the loan capital has been fully in place, the actual progress of the project has been invested in the amount to match the other requirements.
What is a BOC fixed asset loan?
Fixed Asset Loan refers to the present loan issued by the lender to an enterprise (business) legal person or other organization that can be the borrower according to the state regulations, for the purpose of the borrower's fixed asset investment.
The above is for your reference, please refer to the actual business regulations.
What are "fixed asset loans and working capital loans"?
Fixed Asset Loans are loans granted by banks to enterprises for investment in fixed assets. Before the reform of the economic system, the banks in China only issued loans for the working capital of the enterprises, the fixed assets of the state enterprises were allocated by the state treasury, and the fixed assets of the collective enterprises were self-financed.
In order to meet the needs of the economic reform, from 1979, the People's Bank of China began to issue short-term and medium-term equipment loans for enterprises to add a small investment, quick results of the key equipment.
Liquidity loans are loans issued to meet the short-term capital needs of producers and operators in the course of production and operation, and to ensure the normal conduct of production and operation activities. According to the loan period can be divided into short-term working capital loans of less than one year and medium-term working capital loans of one to three years.
Expanded Information:
Fixed Asset Loans are relatively stable and fixed. Can include loan repayment plans and long term loans in the budget. Can assist in purchasing assets otherwise unaffordable. Purchased assets will become collateral for the loan.
Liquidity loans, depending on their use, also include other types of loans for securities companies, mainly real estate mortgages, certificates of deposit, guaranteed loans and credit loans, etc., which are used to address the acquisition of fixed assets, renovation of business offices and other needs of the company for the development of securities companies.
Liquidity loans are categorized into RMB and two types. Its loan period is mainly based on the borrower's production and operation cycle, repayment ability and the lender's financial strength, determined by the negotiation between the borrower and lender, generally not more than 1 year, the longest period of special circumstances does not exceed 3 years (including 3 years).