Administrative Measures for Auto Loans (Revised in 2017)
Administrative Measures for Auto Loans (Revised in 2017)
Administrative Measures for Auto Loans (Revised in 2017)
Order of the People's Bank of China and the China Banking Regulatory Commission [2017] No.2
October 13, 2017
With a view to further supporting and promoting automobile consumption, regulating the management of auto loan business, the People's Bank of China ("PBC") and the China Banking Regulatory Commission ("CBRC") have decided to revise the Measures for the Administration of Auto Loans. And upon deliberation at the executive meeting of the People's Bank of China and the chairman's executive meeting of the CBRC, the revised the Administrative Measures for Auto Loans have been adopted, and are promulgated hereby with effective from January 1, 2018, with the previous Measures for the Administration of Auto Loans (Order of the People's Bank of China and the China Banking Regulatory Commission [2004] No.2) to be abolished simultaneously.
PBC Governor Zhou Xiaochuan
CBRC Chairman Guo Shuqing
Administrative Measures for Auto Loans (Revised in 2017)
Chapter I General Provisions
Article 1 These Measures are formulated under the Law of the People's Republic of China on the People's Bank of China, the Banking Regulation Law of the People's Republic of China, the Law of the People's Republic of China on Commercial Banks, and other laws and regulations with a view to regulating the management of auto loans, guarding against auto-loan risks, and promoting a healthy development of the auto loan business.
Article 2 For the purpose of these Measures, auto loans refer loans that lenders grant to borrowers for the purchase of automobiles (including used cars), including personal auto loans, auto dealer loans, and auto loans to institutions.
Article 3 For the purpose of these Measures, a lender refers to a commercial bank, rural cooperative bank or rural credit cooperative established under the law within the territory of the People's Republic of China which has been approved to engage in RMB loan business by the China Banking Regulatory Commission ("CBRC") and its agencies, or a non-banking financial institution which has been approved to engage in auto loan business.
Article 4 For the purpose of these Measures, an automobile for personal use refers to an automobile purchased by a borrower with auto loans that are used for non-for-profit purposes; a commercial automobile refers to an automobile purchased by a borrower with auto loans that are used for for-profit purposes; a used car refers to an automobile subject to a change of ownership with the required transfer procedure completed under the law during the period from the completion of its auto registration to the time when it meets the national mandatory vehicle scrappage standards; a new energy vehicle refers to an automobile which adopts a new power energy system and is fully or mainly propelled by a type of new energy, including plug-in hybrid (including extended-range) electric vehicles, battery electric vehicles, and fuel cell vehicles.
Article 5 Auto loan interest rates shall be governed by the regulations on loan interest rates as issued by the PBC, and the methods for the calculation and settlement of interests shall be subject to negotiations between borrowers and lenders.
......
Order of the People's Bank of China and the China Banking Regulatory Commission [2017] No.2
October 13, 2017
With a view to further supporting and promoting automobile consumption, regulating the management of auto loan business, the People's Bank of China ("PBC") and the China Banking Regulatory Commission ("CBRC") have decided to revise the Measures for the Administration of Auto Loans. And upon deliberation at the executive meeting of the People's Bank of China and the chairman's executive meeting of the CBRC, the revised the Administrative Measures for Auto Loans have been adopted, and are promulgated hereby with effective from January 1, 2018, with the previous Measures for the Administration of Auto Loans (Order of the People's Bank of China and the China Banking Regulatory Commission [2004] No.2) to be abolished simultaneously.
PBC Governor Zhou Xiaochuan
CBRC Chairman Guo Shuqing
Administrative Measures for Auto Loans (Revised in 2017)
Chapter I General Provisions
Article 1 These Measures are formulated under the Law of the People's Republic of China on the People's Bank of China, the Banking Regulation Law of the People's Republic of China, the Law of the People's Republic of China on Commercial Banks, and other laws and regulations with a view to regulating the management of auto loans, guarding against auto-loan risks, and promoting a healthy development of the auto loan business.
Article 2 For the purpose of these Measures, auto loans refer loans that lenders grant to borrowers for the purchase of automobiles (including used cars), including personal auto loans, auto dealer loans, and auto loans to institutions.
Article 3 For the purpose of these Measures, a lender refers to a commercial bank, rural cooperative bank or rural credit cooperative established under the law within the territory of the People's Republic of China which has been approved to engage in RMB loan business by the China Banking Regulatory Commission ("CBRC") and its agencies, or a non-banking financial institution which has been approved to engage in auto loan business.
Article 4 For the purpose of these Measures, an automobile for personal use refers to an automobile purchased by a borrower with auto loans that are used for non-for-profit purposes; a commercial automobile refers to an automobile purchased by a borrower with auto loans that are used for for-profit purposes; a used car refers to an automobile subject to a change of ownership with the required transfer procedure completed under the law during the period from the completion of its auto registration to the time when it meets the national mandatory vehicle scrappage standards; a new energy vehicle refers to an automobile which adopts a new power energy system and is fully or mainly propelled by a type of new energy, including plug-in hybrid (including extended-range) electric vehicles, battery electric vehicles, and fuel cell vehicles.
Article 5 Auto loan interest rates shall be governed by the regulations on loan interest rates as issued by the PBC, and the methods for the calculation and settlement of interests shall be subject to negotiations between borrowers and lenders.
......