Notice of the People's Bank of China on Further Strengthening the Management of Real Estate Credit Business (Yinfa [2003] No. 121) All branches and business management departments of the People's Bank of China, wholly-owned commercial banks and joint-stock commercial banks of various countries: In order to further implement real estate credit policies and prevent financial risks

, to promote the healthy development of real estate finance, the requirements for strengthening the management of real estate credit business are hereby notified as follows: 1. Strengthen the management of real estate development loans and guide and standardize loans to be invested in real estate development. Loan objects should have real estate development qualifications, high credit ratings, and no delinquent projects.

A real estate development company.

Loans should focus on supporting residential projects that meet the purchasing power of low- and middle-income families, and there should be appropriate restrictions on large-sized, large-area, high-end commercial housing, villas and other projects.

For real estate development companies with a large number of vacant commercial buildings and high debt ratios, new real estate development loans must be strictly reviewed and approved and monitored intensively.

All commercial banks should strictly implement the "Several Opinions of the Ministry of Construction, the State Planning Commission, the Ministry of Finance, the Ministry of Land and Resources, the People's Bank of China, and the State Administration of Taxation on strengthening macro-control of the real estate market and promoting the healthy development of the real estate market" (Building Housing [2002] 217

No.), any form of loan shall not be granted to projects that have not obtained the land use right certificate, construction land planning permit, construction project planning permit and construction permit.

Loans applied by commercial banks for real estate development enterprises can only be issued through real estate development loan accounts, and are strictly prohibited from being issued through real estate development working capital loans and other forms of loan accounts.

For non-real estate development loans that have been issued by real estate development enterprises, commercial banks will only accept but not release them.

When a real estate development enterprise applies for a bank loan, its own funds (referring to owner's equity) should be no less than 30% of the total investment in the development project.

Real estate loans issued by commercial banks can only be used for real estate projects in the region and are strictly prohibited from being used across regions.

2. Strictly control the issuance of land reserve loans. Commercial banks should standardize the management of loans to government land reserve institutions and prudently issue such loans before the promulgation of the "Regulations on the Management of Loans to Land Reserve Institutions."

Loans granted to land reserve institutions are mortgage loans. The loan amount shall not exceed 70% of the appraised value of the acquired land, and the loan term shall not exceed 2 years.

Commercial banks are not allowed to issue loans to real estate development enterprises for payment of land transfer fees.

3. Standardize the use of working capital loans for construction companies. Commercial banks must strictly prevent construction companies from using bank loans to advance real estate development projects.

Construction companies undertaking real estate construction projects can only use the working capital loans obtained to purchase equipment necessary for construction (such as tower cranes, excavators, bulldozers, etc.).

If an enterprise misappropriates the loan for other purposes, the handling bank shall recover the misappropriated funds within a time limit and notify other local commercial banks of the enterprise's violations, and the commercial banks shall no longer provide corresponding credit support to the enterprise.

Commercial banks should restrict loans to construction companies that undertake real estate construction projects with low self-owned funds and large accounts receivable.

4. Strengthen the management of personal housing loans, focusing on supporting the needs of low- and middle-income families to purchase housing. Commercial banks should further expand the coverage of personal housing loans and expand the beneficiary groups of housing loans.

In order to reduce the unnecessary interest burden on borrowers, commercial banks can only issue personal housing loans to individuals who purchase housing whose main structure has been capped.

For borrowers who apply for a personal housing loan to purchase their first home for self-occupation, the down payment ratio is still 20%; for those who purchase a second or more homes (including the second home), the down payment ratio should be appropriately increased.

Commercial banks should register the personal housing loans issued in the credit registration consultation system of the local People's Bank of China, and record in detail the borrower's loan amount, loan period, and the ID numbers of the borrower and his spouse.

Before commercial banks issue personal housing loans, they should make inquiries in the credit registration consultation system.

5. Strengthen the management of personal commercial housing loans. The loan-to-debt ratio of a borrower applying for a personal commercial housing loan shall not exceed 60%, the maximum loan term shall not exceed 10 years, and the commercial housing purchased must be a completed and accepted house.

If a borrower applies for a bank loan in the name of "commercial and residential housing," commercial banks will comply with the regulations on personal commercial housing loans.

6. Give full play to the regulating effect of interest rate leverage on the demand for personal housing loans. For borrowers who apply for personal housing loans to purchase housing reform houses or first self-occupied houses (excluding high-end commercial houses and villas), commercial banks shall follow the personal housing regulations announced by the People's Bank of China.

The loan interest rate (not allowed to float) shall be implemented; for the purchase of high-end commercial houses, villas, commercial houses or second or higher houses (including second homes), commercial banks shall implement the loan interest rate for the same period and grade announced by the People's Bank of China.