What is the loan interest rate of rural credit cooperatives? How is the interest calculated

For some enterprises and individuals within the designated areas of rural credit cooperatives, going to a rural credit cooperative for a loan is naturally much more convenient than going to other banks, and the procedures are also much faster. Especially for some farmers or small private enterprises with smaller loan amounts, a rural credit cooperative loan can both shorten the time needed for the loan and increase their success rate in obtaining a loan, which can be said to have only benefits and no drawbacks. So, what is the loan interest of rural credit cooperatives, and what are the loan conditions required? Below, the editor will answer for everyone.

Rural credit cooperative loan amounts

The loan amount of rural credit cooperatives varies to some extent according to different local loan policies and loan methods, but generally the loan amount of rural credit cooperatives is not very high. For small loans from rural credit cooperatives, the amount generally cannot exceed 50,000 yuan. If it is a secured loan, it may be a bit easier to handle and the amount will be slightly higher, but if it is an unsecured credit loan, the amount is not that high, generally around 20,000 yuan.

Rural credit cooperative loan interest rates

The loan interest rates of credit cooperatives are floating, that is, within the floating range approved by the People's Bank of China, the credit cooperative determines whether to float and by how much according to the principles of preserving capital and making small profits, based on the loan recipient, loan type, size of economic benefits, length of term, and credit quality. The lower limit of the rural credit cooperative loan interest rate is 0.9 times the benchmark interest rate, and the maximum upward floating coefficient is 2.3 times the benchmark loan interest rate, with preferential treatment for shareholder members.

RMB loan benchmark interest rates

1. Short-term loans: within six months (including six months) 5.35%, from six months to one year (including one year) 5.35%.

2. Medium- and long-term loans: one to three years (including three years) 5.75%, three to five years (including five years) 5.75%, over five years 5.90%.

3. Housing provident fund loans: under five years (including five years) 3.50%, over five years 4.00%.

Rural credit cooperative loan conditions

1. Have the ability to repay principal and interest on schedule. The original loan interest payable and matured loans have basically been repaid; for those not yet repaid, a repayment plan acceptable to the lender has already been made.

2. Except for natural persons and public institution legal persons that do not need approval and registration by the industry and commerce department, annual inspection procedures shall be handled through the industry and commerce department,

3. A basic account or general deposit account has already been opened at the lending cooperative, and a certain amount of payment deposit is kept in that account. The borrower voluntarily accepts the credit and settlement supervision and inspection of the lending cooperative, and can ensure that it regularly submits business plans and related business and financial statements to the lending cooperative.

4. Those applying for guaranteed or mortgage loans must have loan guarantors, loan collateral, or pledged goods that meet the regulations. The loan guarantor must be an enterprise or economic entity that has opened a deposit account at a rural credit cooperative and has good economic benefits and creditworthiness. The loan collateral must comply with the provisions of the Guarantee Law of the People's Republic of China and relevant laws and regulations. In principle, it should mainly be immovable property (such as houses and land), and it must be commercial in nature and easy to realize into cash.

5. The borrower's asset-liability ratio must not be higher than 70%.

6. For loans applied for fixed assets, real estate, and other projects, the borrower's owners' equity and the proportion of self-raised funds must meet the requirements stipulated by the State Council, and at the same time, complete, standardised, and valid documents and materials must be submitted according to project management requirements.

7. Except as stipulated by the State Council, the cumulative amount of external equity investment by a limited liability company and a joint stock limited company shall not exceed 50% of its net assets.

8. The borrower must handle a loan card according to the provisions of the People's Bank of China, and handle the annual inspection procedures as required.