ICBC Personal Loan Breaks Through 500 Billion Yuan

On October 20, 2005, ICBC held a news release titled "Give confidence in true feelings and enjoy happiness to the full personal credit business develops by leaps and bounds onto a new stage" in Beijing. ICBC's vice president Zhang Furong herein announced, by September 30, 2005, the balance of ICBC personal loan had broken through the threshold of 500 billion Yuan, and reached 500.

9 billion Yuan. It is another occasion of staged significance in the operational history of ICBC personal loan since ICBC personal housing loan broken through 400 billion in November 2004, and showed the powerful strength of ICBC personal credit business again.

ICBC's vice president Zhang Furong said to the reporters in the news release, the year 2001 to 2005 is an important phase for the development of ICBC personal credit business, and in the five years, ICBC has always firmly carried out and fulfilled the macroeconomic policies of the country for expanding consumer demands, upheld the guideline of paying equal attention to market development and risk prevention all along, closely followed market changes, started from meeting customer demands, and actively implemented the operating strategy of business focused, customer focused, and region focused; after persisting efforts of the whole bank, ICBC personal credit business has gradually stepped onto the road of systematic, standard, and intensive development.

The 500 billion Yuan of "Happiness Loan" is an accumulation of ICBC's concerning for what customers are concerning and thinking for what customers are thinking! Following this figure is a more long range plan and a more magnificent objective.

As the largest commercial bank of China in the scale of assets, ICBC has always steadily occupied the largest market share of personal loan in China. Since 2001, ICBC has launched a series of "Happiness Loan" personal credit products including personal housing loan, personal auto loan, personal comprehensive consumer loan, personal pledge loan, etc.

in succession, and taken "Happiness Loan, and loan happiness" as its service tenet to meet consumer demands of residence. On the other hand, ICBC advances the technology development progress of personal credit business by building an advanced technology platform, implements computerized operation and management of the whole system, the whole variety and the whole process, relies on the advanced, efficient personal credit desk account management system, establishes the business supervisory model of "governing one level and supervising two levels," implemented separation of front platform from back platform, and realizes scientification, standardization and normalization of personal credit business management as well as increases the efficiency of business processing and improves customer services.

At present, ICBC personal credit brand "Happiness Loan" has struck root in the hearts of the people.

The brand image of "Happiness Loan" has gotten upgraded continuously and made the ICBC personal credit business develop with might redoubled. On the premise of strengthening business management and risk control, in recent years ICBC has kept a high and steady development pattern of personal loan business, maintained the position of the largest personal mortgage bank in China, and built up a nationwide business organizational system and marketing network.

As well as effectively promotes economic consumption, it also makes active, significant contributions to the adjustments of ICBC's assets structure, assets quality and income structure.

To further improve service modes, upgrade product contents, and build up personal credit "Choice Products." On this news release, ICBC also newly launches eight service measures to accelerate the development of personal credit business:

First, to meet the increasingly diversified financing demands of customers, ICBC introduced personal operating loans to the market, supports the customers to use them for the purposes of production and operation, and develops the first batch of experiments in Shanghai, Zhejiang, Jiangsu, Shandong, Guangdong, Fujian, Anhui, Shenzhen, Ningbo, Suzhou and other regions.

The second is to streamline loan procedures and reduce loan costs of customers. When applying for a personal loan, the customer shall be free from the part of request for witness by the lawyer. When making an application to ICBC for a personal loan secured by housing mortgage, the customer can handle the matter on purchasing insurance for mortgaged houses at his/her sole discretion.

The third is to increase service efficiency and save time for the customers. For those personal customers meeting the conditions for loan application and having a complete set of loan application materials, ICBC commits to grant the loan within 5 working days on the premise of implementing valid security procedures.

The fourth is to meet the personal financing demands of customers. During the period of loan, the customer can make a free choice among ICBC's existing repayment modes.

The fifth is to provide the client of "Elite Club account" applying to ICBC for a personal loan with a preferential interest rate allowable for similar loans.

Sixth, any new or old customer having a loan of 500,000 Yuan or above at ICBC, making normal repayment in consecutive two years and having no bad credit records can take priority of applying for an ICBC credit card, including peony international credit card, peony credit card, peony quasi credit card, etc, free from the annual fee for one year.

The seventh is to provide the "package" service of "1 3" personal loan. For any high quality customer having an ICBC personal housing loan of 500,000 Yuan or above, making normal repayment in consecutive two years, and having no bad credit records, when he/she applies to ICBC for a personal auto loan, personal comprehensive consumer loan, or personal operating loan, ICBC will simplify the loan survey and assessment procedures, and provide more convenient and expedient high quality services for the customers.

The eighth is to provide "1 X" value added personal financing services. Any high quality personal customer having an ICBC loan of 500,000 Yuan or above, making normal repayment in consecutive two years, and having no bad credit records can become a client of ICBC "Elite Club account," enjoy the preferential treatment of exemption from business commission for intercity deposit, collection, deposit certificate opening, conclusion of personal financing agreement, account loss reporting, etc.

, and half reduction of business commission for intercity withdrawal and remittance, and can enjoy such services as account reconciliation reminding by mobile phone short message, supplementary card of Elite Club account card, etc. free of charge.

News Link:
I. The increasingly growing proportion of personal assets business in the banking business has become a trend. The main reasons for this evolution include: First, the storing mode of current social wealth has taken place great changes. The development of national economy, continuous improvement of residential disposable income level, and diversification of social consumption structure has promoted the increase of personal investment and financing demands and advanced the development of the bank's personal assets business. The second is development of capital market. The proportion of direct financing on the capital market has keep increasing, which leads to a continuous decrease in the bank's wholesale credit business. Most international comprehensive commercial banks has turned their profit sources from focusing on corporate business to paying equal attention to corporate business and personal business. According to statistics, at this stage, the proportions of personal assets business income in gross profit are generally over 30% for large international banks.

II. ICBC's Personal Loan Brand
"Happiness Home" is the leading one of "Happiness Loan" serial brands, breaking through the conventional rule of traditional personal housing loan, and forming comprehensive, continuous, and long standing financing service plans. Its innovation in concepts, service modes etc represents a "human oriented" concept, approach products closer to the market, and serve the customers better. The customers may choose a mixed form of desired personal housing loan variety by age, income, family and preference to meet their diversified, individualized, and high quality demands.

"Happiness Express" is a kind of personal financing plan oriented at loan worthy "car lovers" jointly built by ICBC and appointed car dealers. The upper limit of loan may reach 80% of the purchase cost of cars; and the period of loan may reach 3 years, and may be extended to 5 years if needed. Car auto loans effectively meet the demands of social individuals for car consumption, and improve the quality of personal lives.

"Happiness Career" is a kind of personal operating loan business launched by ICBC in recent years and a kind of RMB secured loan used for meeting the fund demands of borrowers in the process of lawful production and operations and other reasonable fund demands. The prospective borrowers of personal operating loan include small industrial and commercial businesses, personal sole proprietorship investors, partnership enterprise partners and private enterprise owners, etc.

Personal operating loans not only meet the fund demands of small industrial and commercial businesses, personal sole proprietorship investors, partnership enterprise partners and private enterprise owners for lawful operations, but also fill up the gap in demands for personal operating loans on the personal banking market, and realize credit business innovation.