What is a Collateralized Loan Obligation?

Mortgage pledge loan refers to a loan obtained by a certain guarantor as a guarantee or using a certain property as a mortgage or pledge.

Mortgage pledge loan

Right!

Mortgage pledge loan refers to a loan obtained by a certain guarantor as a guarantee or using a certain property as a mortgage or pledge.

Guaranteed loans can be divided into the following three categories: guaranteed loans, mortgage loans, and pledged loans.

Chinese name

Mortgage pledge loan

Foreign name

no

Category

Guaranteed loans, mortgage loans, pledged loans

Nature

Mortgages obtained by mortgage or pledge of property.

(1) The subject matter of mortgage is movable property and real property; the subject matter of pledge is movable property and property rights (such as

1. Signing the subscription: The client signs the subscription with the real estate development company that has signed a contract with the bank, and pays the first installment payment to the real estate development company;

2. Apply for: Clients entrusted to the bank

Must be business

Inventory (spot) pledge loan

Inventory (spot) pledge loan means that the borrower borrows the inventory as a pledge from a creditor. In order to realize the transfer of the pledge, the creditor entrusts a logistics company or an asset management company to become a third-party enterprise and supervises and stores it as a pledge. Inventory.

Characteristics of inventory (spot) pledge

First of all, since financial institutions are not allowed to engage in business activities other than financial services, to obtain possession of movable property, a third party (deposit company) other than the borrower must be used to provide collateral storage services. The warehouse company issues a warehouse receipt with the financial institution as the depositor and delivers it to the financial institution. At this time, the financial institution does not directly own the collateral, but indirectly manages and holds the goods through the warehouse company.

Secondly, financial institutions have neither the ability nor the actual supervision and control over the collateral. Instead, the warehousing company shall, in accordance with the inventory (spot) pledge loan contract signed by the borrower and the financial institution, and the inventory supervision contract signed by the three parties. The collateral deposited in the storage center provides storage and supervision services.

Thirdly, the goods used by the company as a guarantee have a great impact on the operation of its production and sales supply chain. In order to ensure the smooth repayment of the company, financial institutions are required to minimize the impact on the borrower's normal production and marketing activities while realizing possession of the property and allow the company To extract or replace goods during the supervision period, the warehousing company must be able to coordinate the regulatory needs of the financial institution and the production and marketing activities of the borrower. Therefore, the collateral pledged by inventory (spot) is volatile.

"Inventory (spot) pledge loan" As a new financing method, it involves at least three entities: the borrower, the lender, and a third party that provides pledge supervision and warehousing services. (Spot) pledge contract and inventory supervision contract signed by the three parties are determined.

Procedure for inventory (spot) pledge loan

Since the inventory (spot) pledge loan business involves the interests of the three parties: the warehousing enterprise, the owner and the bank, there must be a set of rigorous and perfect operating procedures.

First, the owner (borrower) signs a "Bank-enterprise Cooperation Agreement" and "Account Supervision Agreement" with the bank; the storage enterprise, the owner and the bank sign the "Storage Agreement"; at the same time, the storage company and the bank sign the "Irrevocable Assistance to Pledge Right Guarantee" ".

Secondly, the owner delivers the goods to the designated warehouse according to the agreed quantity. After receiving the notice, the storage company confirms the opening of the special inventory warrant; the owner endorses the special inventory warrant on the spot. After the warehouse owner signs it, the owner delivers it to the bank. File an inventory (spot) pledge loan application.

Secondly, after the bank reviews, it signs the loan contract and the inventory (spot) pledge contract, and makes a loan to the supervisory account opened by the owner in the bank according to a certain percentage of the value of the inventory.

Finally, when normal sales are achieved during the loan period, the full payment is transferred to the supervision account. The bank issues a bill of lading to the owner according to the agreed amount, and the warehouse sends the goods after verification according to the agreed requirements. After the loan is returned, the balance can be paid by the owner. (Borrower) dominates.

Purchase pledge loan [2]

The buyer does not have enough funds to purchase goods, and applies to the financial institution to mortgage the purchased goods to the financial institution to obtain a loan. The supervision warehouse assumes the responsibility of goods supervision as a third party. When the seller's goods enter the warehouse, the financial institution will loan the buyer to pay the seller's part of the payment, and picking up and replacing the goods is also the same as inventory (spot) pledge.

Certificate of deposit pledge loan

Certificate of deposit pledge loan means that the borrower uses the unexpired personal local and foreign currency deposit certificates of deposit issued by the lending bank (there are also banks that handle deposit certificates of deposit certificates issued by other financial institutions that have signed guarantee agreements with the Bank) as pledges. A credit business in which a bank obtains a certain amount of loan and repays the principal and interest of the loan on schedule.

As the most commonly used pledge loan, deposit certificate pledge loan refers to a loan business that takes a customer's unexpired time deposit certificate as a pledge, obtains a certain amount of RMB loans from a bank, and repays the loan principal and interest on schedule. Certificate of deposit pledge loan is the loan method with the lowest interest rate, the easiest procedure and the fastest application speed.

The certificate of deposit pledge loan may seem simple, but there are also skills to achieve the best use. Judging from the characteristics of this type of loan, the following three aspects must be paid attention to when using deposit certificate mortgage loans.

Loan or not

As the certificate of deposit can be used to withdraw cash in advance, there is an option of "withdrawing the certificate of deposit in advance or using a certificate of deposit to pledge a loan". To determine whether a loan is needed or not, the three factors of the length of time the certificate of deposit has been stored, the deposit interest rate and the loan interest rate should be comprehensively calculated according to the following formula.

Interest on overpayment of loans = loan amount × loan interest rate × loan term-deposit certificate amount × time deposit interest rate × deposit term

Loss from early withdrawal = deposit certificate amount × time deposit interest rate × stored term-deposit certificate amount × demand deposit interest rate × stored term

When the overpayment interest on the loan is greater than the loss withdrawn in advance, the deposit certificate is drawn in advance; when the overpayment interest on the loan is less than the loss withdrawn in advance, the mortgage loan is processed.

In addition, as an old type of loan, the function of certificate of deposit pledge loans has been continuously optimized, and many banks have assigned the function of credit of certificate of deposit pledge loans. As long as the borrower pledges the deposit certificate to the bank, the bank sets a personal maximum credit limit in accordance with certain standards. The borrower can withdraw the loan within the credit limit and term, as withdrawing from the passbook, and can be used for unlimited turnover, eliminating the tedious process of going through the formalities once for each loan application. Moreover, it can be used at any time and returned at any time, thereby saving interest expenses.

How long

The bank loan term of the deposit certificate is generally not to exceed the maturity date of the deposit certificate, and the maximum period is not to exceed one year. If multiple certificates of deposit are pledged, the half-year and one-year loan benchmark interest rates of banks are determined by the time of the certificate of deposit closest to the maturity date (most banks implement benchmark interest rates on certificates of deposit pledged loans). Loans of 5.40% and 5.85%. 100,000 yuan, respectively, have a difference of 450 yuan in interest between one year and half a year. Therefore, it is recommended that the borrower control the term of the loan within half a year; even if the term of the loan must be one year, it is also recommended to divide the loan into two half-year periods (but according to the bank's "repayment first and subsequent loans" regulations, the first When the sub-loan expires, there should be temporary working capital to return the loan, and then renew the loan). In this way, although a few yuan more stamp duty was paid, it would save a lot of loan interest expenses.

How much

The amount of the loan directly affects interest expenses. In the case that the deposit certificate is sufficiently pledged (the loan amount generally does not exceed 90% of the face value of the deposit certificate), the funds should be sufficient to avoid paying more interest. In the case where the deposit certificate of a certain bank is insufficiently pledged, you can compare multiple banks and choose another bank with a higher pledge rate to apply for a loan. Because the pledge rate of each bank is different, some banks are 80% of the denomination, and some banks are 90%.

Warehouse receipt pledge loan

The warehouse receipt refers to the only legal property right certificate issued by the warehouse company to the depositor or the owner of the goods that records the ownership of the warehouse goods. The holder of the warehouse receipt can at any time directly use the warehouse receipt to retrieve the goods from the warehouse.

The warehouse receipt pledge loan means that the bank signs a cooperation agreement with the borrower (pledgor) and the custodian (storage company), and uses the warehouse warehousing warrant issued by the lender to hold the borrower's own or a third party as the pledge to the borrower Credit business for loans.

IP pledge loan

Intellectual property pledge loan refers to the application for financing from a bank that has legally owned property rights in patents, trademarks, and copyrights after evaluation. Due to the particularity of the implementation and realization of intellectual property rights, such as patent rights, only a few banks provide this financing facility to some SMEs, and generally need to be insured by the legal representative of the enterprise.

Policy pledge loan

The policy pledge loan is a financing method in which the policyholder directly mortgages the policy it holds to the insurance company and obtains funds in accordance with a certain percentage of the cash value of the policy. If the borrower is unable to perform the debt due, the insurance company has the right to terminate the effectiveness of the insurance contract when the principal and interest of the loan accumulate to the surrender cash value. In the life insurance industry development process, it has become a fashion to add policy pledge loans to insurance terms.

Policy pledge loan is a short-term financing method. It refers to the application of a loan from an insurance company or bank by the policy owner when the fund is lacking. The loan funds come from the cash value of the policy (when the premium is paid for a certain period of time, the life insurance policy will accumulate a certain amount of cash value, which also has a pledge value). Therefore, life insurance generally with a savings nature can apply for a policy loan ; For short-term accident insurance, medical insurance, etc. because they do not have cash value or because of fluctuations in cash value, you cannot apply for a policy loan. The use of policy pledged loans (loans) can continue to enjoy the protection of insurance.

There are two ways to pledge loans.

Insurance company

The policyholder may pledge the insurance policy directly to the insurance company and obtain loans directly from the insurance company. The loan period provided by the insurance company is short, and generally does not exceed 6 months (but as long as the policy payment is valid, interest can be repaid for 6 months after the expiry, and the number of renewals is unlimited), and the maximum loan amount is also It does not exceed a certain percentage of the cash value of the policy, which is generally 70% to 80%. If the borrower fails to fulfill the debt, the insurance company will terminate the insurance contract when the principal and interest of the loan reach the surrender amount. Special attention should be paid to the insurance company's pledged borrowing interest. The interest rate is generally calculated based on the higher interest rate prescribed by the China Insurance Regulatory Commission and the bank loan interest rate over the same period, which is then increased by 20%. Therefore, the interest rates on policy-pledged borrowings are higher than those on certificates of deposit and government bond pledged loans, and the interest rates vary depending on the type of insurance policy. If there are multiple pledged insurance policies for the same policyholder, it is necessary to choose a corresponding policy with a lower borrowing rate to pledge to save interest expenses.

bank

Compared with applying for insurance policy loans from insurance companies, the bank's policy pledge loans are more favorable in terms of amount, term and loan interest rate than the former. The policyholder can obtain a loan limit of up to 90% of the cash value of the pledged policy, with a term of up to 5 years, and the loan interest rate is determined according to the benchmark interest rate of the corresponding loan term stipulated by the People's Bank of China. In addition, you can enjoy the convenience of granting credit to the loan line, and recycle the loan within the credit line. However, banks generally require that the policy used as a pledge must be the type of insurance represented by the bank.

Treasury bond pledge loan

Treasury bond pledge loan refers to a loan business in which the borrower uses unexpired treasury bonds as a pledge, obtains a RMB loan from a loan bank, and repays the principal and interest of the loan at one time when due. It should be noted that the government bonds here generally refer to certificate-type government bonds (generally loan banks only accept certificate-type government bonds issued by banks after 1999, and some banks have relatively loose time requirements for government bonds), but there are also banks (such as Bank of Communications ) For pledged loans for book-entry government bonds.

Certificate-type government bond pledge loan refers to a type of borrower who pledges unexpired certificate-type government bonds issued by the Ministry of Finance after 1999 (including 1999), obtains RMB loans from the original subscription government bond bank, and repays the principal and interest of the loan at maturity. loan service.

The starting point of the voucher-type government bond pledge loan is 5,000 yuan, and each loan does not exceed 90% of the value of the bond pledge. In other words, you must have a voucher-type government bond of more than 5,600 yuan to apply for a loan from a bank. The interest rate of the voucher-type government bond pledge loan shall be implemented in accordance with the benchmark loan interest rate (including floating) of the same grade in the same period and relevant regulations. The term of the loan is less than 6 months, and it is determined at the benchmark interest rate of 6 months. The maximum loan period cannot exceed the maturity date of the voucher-type government bonds. If multiple voucher-type government bonds with different maturities are used as the pledge, the loan period will be determined by the one closest to the maturity date.

The procedures for the processing of voucher-type government debt pledged loans are similar to those for deposit pledged loans. Therefore, the precautions are the same as those for the deposit certificate pledge loan, but special attention should be paid to applying for the loan as much as possible instead of paying the national debt in advance. Because holding the national debt is paid in less than half a year, not only has no interest income, but also has to pay a 1 fee; if the national debt is held for more than half a year and less than one year, the interest rate for early redemption is 0.63%, but the deduction of 1 After the fee, its yield fell to 0.53%, which is lower than the after-tax yield of the current savings deposit of 0.576%. Therefore, the comprehensive early redemption requires payment of a commission fee, the yield is lower than the demand deposit, and the yield on maturity of government bonds is higher than the regular bank Deposits, the benchmark interest rate for treasury bond pledged loans, etc. Generally speaking, it is more cost-effective for Treasury holders to apply for loans from banks than to pay Treasury bonds in advance.

Stock pledge loan

Stock pledge loan refers to a loan method in which a securities company pledges its own stocks, securities investment fund bonds, and convertible bonds of a listed company to obtain funds from a commercial bank. The stock pledge rate is negotiated with the borrower based on the quality of the pledged stock and the borrower's financial and credit status, but the maximum stock pledge rate cannot exceed 60%. The adjustment of the upper limit of the pledge rate is determined by the People's Bank of China and the China Banking Regulatory Commission.

Wealth management pledge loan

Banks have issued a large number of RMB and foreign currency wealth management products. In order to enhance the liquidity of wealth management products and meet the temporary needs of wealth management customers, the bank has launched a new pledged loan product-wealth management product pledged loans. Wealth management product pledge loan refers to the RMB pledge loan that the borrower uses the beneficiary right of domestic and foreign currency wealth management products sold by the bank to pledge.

The starting point of the pledge loan for the beneficiary right of wealth management products is RMB 1,000. For pledged with RMB wealth management product beneficiary rights, the loan amount generally does not exceed 90% of the principal of the wealth management product; for foreign currency wealth management product beneficiary rights, the loan amount generally does not exceed 80% of the principal of the wealth management product. Years, and no more than the expiration date of the pledged domestic and foreign currency wealth management products. Where multiple beneficiary rights of wealth management products are pledged, the loan expiry time is determined by the one closest to the maturity time. If the wealth management product matures early, the loan term will be advanced accordingly. The interest rate can fluctuate from the benchmark interest rate of the bank's loan of the same term, and the loan interest will be paid off with the principal.

Vehicle pledge loan

Vehicle pledge loan: It is to use the full amount of the vehicle in the name of yourself or others as collateral to apply for a fund from Beijing Senqiang Guaranty Co., Ltd., and its purpose can include buying a house, studying abroad, investing, etc. After obtaining the funds, the lender will repay the principal and interest to the bank within the time limit according to the agreement with the guarantee company. The loan process is as follows: 1. Sign a loan contract (debit, receipt, sales contract) with the guarantee company 2. Staff visits and apply for mortgage registration, notarization over 100,000 (foreigners must provide temporary residence permits during mortgage registration) Company lending4. The maximum loan amount for a car without a car is 500,000. The car can be loaned according to the car's evaluation value