How to apply for an unsecured loan from a rural credit cooperative
Rural credit cooperatives refer to rural cooperative financial institutions approved for establishment by the People's Bank of China, formed by members' share contributions, practicing democratic management, and mainly providing financial services to their members. Under normal circumstances, the loans they issue are only granted to farming households, so do rural credit cooperatives issue unsecured loans? Let's take a look below at whether you can apply for an unsecured loan from a rural credit cooperative!
Unsecured loans from rural credit cooperatives
Rural credit cooperatives can provide unsecured loans. Applying for a loan from a rural credit cooperative always requires providing guarantees, which means that if the borrower has no collateral, they still need to provide a guarantee. At present, the relatively common guarantee method for applying for a loan at a credit cooperative is the farming household group guarantee loan. A farming household group guarantee loan means 3 to 5 farming households form a group guarantee membership, and the members jointly guarantee each other's loans at the credit cooperative. When one member borrows, the other members provide the guarantee for them. In addition, the other households bear joint and several liability with the borrower; if one household cannot repay the loan, the other members are responsible for repaying it on their behalf. By applying for a loan in this way, borrowing farming households can obtain a loan without providing collateral.
Loan limits of rural credit cooperatives
The loan limits of rural credit cooperatives vary to a certain extent according to different local loan policies and loan methods, but generally the loan limits of rural credit cooperatives are not very high. For small loans from rural credit cooperatives, the limit generally cannot exceed 50,000 yuan. If it is a secured loan, it may be a bit easier to handle and the limit will be slightly higher, but if it is an unsecured credit loan, the limit is not that high, generally around 20,000 yuan.
Loan conditions of rural credit cooperatives
1. Have the ability to repay principal and interest on schedule. The originally payable loan interest 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 to be approved and registered by the industry and commerce department, annual inspection procedures shall be handled through the industry and commerce department,
3. Have opened a basic account or general deposit account at the lending cooperative, and maintain a certain amount of payment deposit in that account, voluntarily accept the credit and settlement supervision and inspection of the lending cooperative, and be able to ensure the regular submission of business plans and relevant business and financial statements to the lending cooperative.
4. Those applying for guaranteed or secured loans must have loan guarantors, loan collateral, or pledged goods that comply with 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, and in principle should mainly be immovable property (such as houses and land), which must be marketable and easy to liquidate.
5. The borrower's debt-to-asset ratio must not be higher than 70%.
6. For loans applied for fixed assets, real estate, and other projects, the borrower's owner's equity and self-raised fund ratio must meet the requirements stipulated by the State Council, and at the same time, complete, standardized, and valid documents and materials must be submitted in accordance with project management requirements.