ICBC has recently launched the self-service pledged loan business designed for retail customers, through which individuals can apply for and obtain loans in real-time manner via internet or mobile banking, without having to wait for approval. In doing so, the Bank could effectively activate the existing financial assets of customers, and largely meet the funding demand of consumers for shopping, housing decoration, wedding, travel & recreation, education & training, culture and sports. Statistics show since the rollout of the business in October 2014, the Bank has granted RMB 15.4 billion loans in six months.

Personal self-service pledged loans represent an internet-based loan product launched by the Bank, with four features as compared with conventional loan products.

First, the business process is fully internet-based, convenient and efficient. Without having to go to bank outlets, borrowers only need to log onto the internet banking portal of ICBC, and then complete the whole process from loan application, withdrawal, to repayment, inquiry, change/addition of repayment account. Loans will be transferred to their accounts on a real-time basis. Moreover, the Bank has also launched the same business via mobile banking, and already realized application for and grant of loans pledged with time deposits through mobile banking.

Second, the scope of collateral that can be pledged is extensive, including RMB and foreign-currency time deposits, book-entry T-bonds, RMB and foreign-currency wealth management products, paper precious metals, life insurance policies and other types of financial assets.

Third, credit lines and maturities are flexible. The lower and upper limits of an individual loan are RMB 500 (inclusive) and RMB 300,000 respectively, and one account is allowed to apply for more than one loan. The options of loan maturities range from one to twelve months.

Fourth, loan repayment is easy. Upon maturity of a loan, customers can repay its principal and the interest with their own funds, or have the Bank deduct the loan principal and interest based on the nature of their collateral, and return the remaining earnings to them, without having to repay before releasing their collateral as in conventional loans. This can ease the burden of customers and boost the liquidity of financial assets. For instance, a customer applies for an RMB 100,000 loan pledged with ICBC’s account-based gold. Upon the maturity of the loan, if the book value of the account-based gold is RMB 150,000, the customer need not raise the amount required for loan repayment, but directly use the amount of RMB 150,000 to repay the loan. The Bank will return the remaining amount to the customer’s account after deducting the loan principal and the interest.