The pledge rate is the ratio of the loan principal to the market value of the standard warehouse receipt.

The pledge rate is generally determined reasonably based on the price difference between futures and spot, price fluctuation range, trend and other factors. When the price difference is large, the price fluctuation range is relatively large, and the price is falling, the pledge rate will be relatively lower. On the contrary, the pledge rate can be higher. Credit institutions (banks, pawnbrokers) set pledge ratios on the one hand to prevent default risks, and on the other hand to cover their costs of making up for losses and handling collateral after a borrower defaults. Usually the pledge rate is up to 70%.

Mortgage:

1. Use real estate as mortgage. When using real estate as a mortgage, the mortgage rate shall not exceed 70% of the assessed value of the mortgage;

2. Use land use rights as a mortgage. If land use rights are used as mortgage, the mortgage rate shall not exceed 60%;

3. Use cars and other means of transportation. If a vehicle or other means of transportation is used as a mortgage, the mortgage rate shall not exceed 50% of its value.