Legal basis: Measures for the Administration of Automobile Loans
Article 1 These Measures are formulated in accordance with the Law of the People's Republic of China on the People's Bank of China, the Law of People's Republic of China (PRC) Commercial Bank and the Law of the People's Republic of China on Banking Supervision and Administration. In order to standardize the management of automobile loan business, prevent the risk of automobile loan and promote the healthy development of automobile loan business.
Article 2 The term "automobile loan" as mentioned in these Measures refers to the loan granted by the lender to the borrower for purchasing automobiles (including used cars), including personal automobile loans, dealer automobile loans and institutional automobile loans.
Article 3 The term "lender" as mentioned in these Measures refers to commercial banks, urban and rural credit cooperatives and non-bank financial institutions established in People's Republic of China (PRC) according to law and approved by the China Banking Regulatory Commission and its dispatched offices to engage in RMB loan business.
Article 4 The term "automobile for personal use" as mentioned in these Measures refers to the non-operating automobile purchased by the borrower through the automobile loan, the operating automobile handcart purchased by the borrower through the automobile loan, and the automobile that has changed its ownership and gone through the transfer formalities according to law within one year from the date of handling the motor vehicle registration to the specified retirement period.
Article 5 The interest rate of auto loans shall be implemented in accordance with the loan interest rate regulations published by the People's Bank of China, and the methods of interest calculation and settlement shall be determined by both borrowers and borrowers through consultation.
Article 6 The loan term of auto loans (including extension) shall not exceed 5 years, among which the loan term of used car loans (including extension) shall not exceed 3 years, and the loan term of dealer auto loans shall not exceed 1 year.
Article 7 Lenders and borrowers shall follow the principles of equality, voluntariness, honesty and credibility.