What Is Involved in Bad Credit Mortgage Approval?

Credit guarantee refers to the guarantee process established by a guarantee institution established in accordance with the law in the process of financing funds from banks to guarantee debts to the debtor. When the debtor is unable to perform its obligations in accordance with the contract, the guarantee institution shall bear the repayment obligations agreed in the contract To protect the realization of bank claims. The essence of credit guarantee is to guarantee and enhance the personified social material relationship of value realization. Credit guarantees are third-party guarantees, and their basic function is to guarantee the realization of creditor's rights and promote the circulation of financial resources and other factors of production.

Credit guarantee

1. The design of credit guarantee system needs comprehensive consideration

The success of a credit guarantee system depends on many factors. First, the relationship between a guarantee institution and the government, banks, and businesses must be reasonably defined. Secondly, a

1. Effectively resolve small and medium

Conducive to the construction of the credit system of the whole society

Finance is the core of the modern economy, and credit is the life of the financial industry. The credit construction of the financial industry is an important part of the construction of the credit system of the whole society. The guarantee industry is an extension of the financial industry. Developing credit guarantees in the guarantee industry as the entry point in the most sensitive areas of economic life can directly enable enterprises or individuals to improve their credit concepts and pay attention to and value their own credit construction.

Conducive to resource sharing of credit information

The sharing of information resources is an important aspect of social progress. At present, an important reason for the lack of credit in social and economic life is caused by the asymmetry of credit information. The two or more parties to the transaction in the market caused the increase in transaction costs and the failure of transactions due to the blockage of information between each other, or False information causes huge losses to one side of the transaction. Such problems also exist in the process of trading financial products. Promote credit guarantee so that the correct and same credit information is analyzed, researched and enjoyed by financial institutions, guarantee institutions and loan companies together, which can avoid the information obtained by different parties through different channels and different methods for their own purposes. The deviation can make everyone make scientific decisions on the premise of the same more scientific credit information. By developing credit guarantees, both the financial sector and guarantee institutions can fully share credit information resources without having to pay more information costs for this purpose.

Conducive to the development of credit rating agencies

The construction of a social credit system is an important part of a credit evaluation agency. The evaluation agency is in an independent position in the transaction process and is not affected by the interests of the parties to the transaction and the influence of other departments. He uses a scientific evaluation analysis system to make an objective, comprehensive, and scientific evaluation of the credit status of the enterprise. Needless to say, relative to the speed of economic development, the development of China's credit rating industry is lagging behind. Because of this, in all aspects of economic life, including in the fields of financing and financing guarantees, we should vigorously promote the development of the credit evaluation industry. Financial institutions and guarantee institutions can give full consideration to the evaluation results of the evaluation institutions when choosing customers and making guarantees. For financial institutions and guarantee institutions, there is no need to spend more on collecting corporate information. For the enterprise, he can obtain the guarantee qualification with credit ability that can really prove his strength. For the evaluation agency, although he does not have to bear the legal consequences caused by the use of the evaluation report issued by him, he has to bear his own survival risk for his own evaluation level. This potential risk urges the evaluation agency to Continuously improve and improve the scientific nature and evaluation level of the evaluation system.

Conducive to the business development of guarantee institutions

The existing counter-guarantee model of the guarantee institution is basically collateralized by materialized assets or marketable securities or related use right certificates. The requirements for the value of anti-collateral are relatively high, and some are even several times the amount of guarantee. This leads to a series of cumbersome procedures and approval procedures, such as the confirmation of the value of materialized assets (assessment of assets), the confirmation of warrants, and the approval of relevant departments (such as

Credit guarantee is an endogenous demand in the process of financial transactions, while credit guarantee agencies are financial intermediary organizations specializing in credit guarantee work. Credit guarantee institutions should have the following basic functions:

The first step is to apply. The applicant applies for a credit guarantee application to a member credit institution, makes a commitment to attach CS clauses, and provides contract and other materials as required;

The second step is review. Review by member credit agencies, the review mainly includes:

1. The validity and legality of the contract;

2. The authenticity of the applicant's identity;

3. The applicant's previous year

As a special intermediary activity, credit guarantee has the following characteristics:

Credit guarantee is between commercial banks and enterprises. It is an intermediary service activity that combines credit standing and asset liability guarantee. The guarantor provides guarantee to improve the credit rating of the guaranteed person. In addition, since the guarantor is a potential creditor and asset owner of the guarantor, the guarantor has the right to supervise the production and operation activities of the guarantor and even participate in its management activities. Due to the involvement of guarantees, the loan relationship that originally occurred between commercial banks and enterprises has become a relationship between commercial banks, enterprises and guarantee companies. As a result of the involvement of the guarantee company, the risk of commercial bank loans has been dispersed, and the security of commercial bank assets has been more guaranteed, which has strengthened the confidence of commercial banks in SME loans, and made the SME loan channels open.

The essence of guarantee is actually the prevention of risk or the spread and transfer of risk. As the involvement of the guarantee company dispersed the risks of commercial banks' corporate loans, it brought high risks to the guarantee industry itself. The identification and control of risks depends first and foremost on the accumulation of business experience of the guarantee professional. The most important point is to reach a consensus with commercial banks, jointly establish a risk diversification mechanism, and implement proportional guarantees. This is a "win-win" result for the development of commercial banking business and the development of the guarantee industry. Judging from the business practices of local guarantee companies over the past few years, commercial banks have realized that this is crucial.

From the actual situation, the involvement of credit guarantees only facilitates commercial banks' loans to enterprises. Individual guarantees do not have the effect of comprehensively adjusting the allocation of economic resources. However, from the perspective of the entire guarantee industry, the guarantees of professional guarantee institutions can be centralized and systematic. It assumes guarantee responsibilities several times that of its assets according to specific purposes, guides the flow and flow of social funds and commodities, and plays a regulating role in the allocation of social and economic resources, becoming one of the effective tools for the government to implement fiscal and industrial policies. . Therefore, the governments of many countries in the world are often willing to invest to guide, promote and develop their own guarantee industry.

Effectively solve the problem of high financing costs for SMEs

After the credit guarantee system was established, the financing cost of SMEs was the bank interest of the loan plus a certain amount of handling fee, which was much lower than the cost of raising funds from the private sector, thereby reducing the financing cost of SMEs.

Can reduce bank management costs and operating risks

The existence of credit guarantee agencies can simplify banks'

From the perspective of political economy, China's SME credit guarantee system has three shortcomings in structure, operation and function. Structural defects mean that ZF's financial guarantees are absolutely dominant,

If it is said that moderate control of guarantee risk is the starting point of China's credit system construction, then expanding coverage will be the construction of China's guarantee system.

Chapter I General Provisions

The first is to standardize and strengthen the management of credit guarantee funds for small and medium-sized enterprises, and improve the efficiency of fund use. These Measures are formulated in accordance with the relevant provisions of laws and regulations such as the Budget Law of the People's Republic of China and the Law on Promotion of SMEs of the People's Republic of China.

Article 2 The SME credit guarantee funds (hereinafter referred to as guarantee funds) are arranged by the central financial budget and are used exclusively to support SME credit guarantee institutions (hereinafter referred to as guarantee institutions) and SME credit re-guarantee institutions (hereinafter referred to as re-guarantee institutions). Strengthen business capabilities, expand SME guarantee business, and improve financing for SMEs, especially small and micro enterprises.

Article 3 The criteria for the division of medium, small and micro enterprises referred to in these Measures shall be implemented in accordance with state regulations.

Article 4 The use and management of guarantee funds shall follow the principles of openness, transparency, targeted use, scientific management, and strengthened supervision to ensure that the use of funds is standardized, safe and efficient, and is tilted towards the central and western regions.

Article 5 The Ministry of Finance is responsible for the budget management and fund allocation of guarantee funds. It will determine the project fund allocation plan together with the Ministry of Industry and Information Technology, and supervise and inspect the use of funds.

The Ministry of Industry and Information Technology, together with the Ministry of Finance, determines the annual support focus of guarantee funds, establishes a guarantee fund project management system, organizes project declaration and review, and supervises and inspects the implementation of the project, and conducts guarantees based on the business information submission of guarantee institutions. (Re-guarantee) Project reserve work.

Chapter II Support Methods and Quotas

Article 6 Guaranteed funds adopt the following support methods:

(1) Business subsidies, guarantee institutions and re-guarantee institutions are encouraged to provide guarantee (re-guarantee) services for small and medium-sized enterprises, especially small and micro enterprises. For the guarantee business carried out by guarantee institutions that meet the requirements of these Measures, subsidies shall be provided at a rate not exceeding 1%, 2%, and 3% of the annual average insured balance, respectively. For the re-guarantee business of medium-sized and small-scale micro-enterprise re-guarantee institutions that meet the requirements of these Measures, subsidies will be provided at a rate not exceeding 0.5% and 1% of the average annual insured balance respectively.

(2) Premium subsidy, encourage guarantee institutions to provide low-rate guarantee services for SMEs. Without prejudice to other fees, subsidies will be given to small and medium-sized enterprises' guarantee businesses with guarantee fee rates lower than 50% of the bank's benchmark lending rate for the same period of time. Rate difference, and focus on subsidizing low-rate guarantee business for small and micro enterprises.

(3) Capital investment. Encourage guarantee institutions to expand their capital, increase their credit level, and enhance their business capabilities. Under special circumstances, guarantee institutions and re-guarantee institutions that meet the requirements of these Measures shall be provided with capital injection support at a rate not exceeding 30% of the newly added capital.

(4) Others. Other support methods to encourage and guide guarantee institutions and re-guarantee institutions to carry out SME credit guarantee (re-guarantee) business.

Article 7 A guarantee institution and re-guarantee institution that meet the requirements of these measures can apply for the above-mentioned funding that is not limited to one support method at the same time, but the maximum amount of funding obtained by a single guarantee institution in that year does not exceed 20 million yuan. The maximum amount of funding obtained from the guarantee fund shall not exceed 30 million yuan. (Except capital investment methods)

Chapter III Application Conditions and Requirements

Article 8 A guarantee institution applying for guarantee funds must simultaneously meet the following requirements:

(1) Established and operated in accordance with relevant national laws and regulations, possessed the status of an independent corporate legal person, and obtained a business license for a financing guarantee institution.

(2) Has operated the guarantee business for 2 years or more and has no bad credit history.

(3) The guarantee business complies with the relevant national laws, regulations, business management regulations and industrial policies. The newly-added SME guarantee business accounted for more than 70% of the total new guarantee business in the year or the new SME guarantee business amount exceeded 1 billion yuan in the year. .

(4) The balance of guarantee liability provided to a single enterprise shall not exceed 10% of the net assets of the guarantee institution, and the balance of guarantee liability provided for the issue of a single corporate bond shall not exceed 30% of the net assets of the guarantee institution.

(5) The newly-added guarantee business in the eastern region in the current year reached 3.5 times the average net assets [ie: (net assets at the beginning of the year + net assets at the end of the year) / 2, the same below], and the compensation rate was less than 2%; In the year, the newly-added guarantee business of the regional guarantee institutions reached more than 3 times the average net assets, and the compensation rate was less than 2%. In the year, the new guarantee business of the western guarantee institutions reached more than 2.5 times the average net assets, and the compensation rate was Below 2%.

(6) The average annual guarantee fee rate does not exceed 50% of the bank's benchmark loan interest rate for the same period.

(7) The internal management system is sound, the operation is standardized, the reserve is drawn in accordance with the regulations, and the financial accounting report and relevant information of the enterprise are submitted to the financial department in a timely manner.

(8) In the past 3 years, no punishment has been imposed by the financial department at or above the county level and other supervisory departments for fiscal, financial or other violations of laws and regulations.

(9) Other conditions that should be met.

Article 9 A re-guarantee institution applying for guarantee funds must also meet the following requirements:

(1) As in Article 8, Article 1.

(2) Regarding guarantee institutions as the main service objects, operating SME re-guarantee business for one year or more.

(3) The re-guarantee business complies with relevant national laws, regulations, business management regulations and industrial policies. In the year, the newly-added SME re-guarantee business accounted for more than 70% of the total re-guarantee business.

(4) The newly increased re-guarantee business amounted to more than 5 times the average net assets.

(5) The average annual reguarantee fee rate does not exceed 15% of the bank's benchmark loan interest rate for the same period.

(6) The internal system is sound and the management is standardized, and the financial and accounting reports and relevant information of the enterprise are submitted to the financial department in a timely manner.

(7) In the past three years, no punishment has been imposed on the fiscal, financial or other illegal and illegal acts by the financial department at or above the county level and other regulatory departments.

(8) Other conditions that should be met.

Article 10 The guarantee institution and re-guarantee institution applying for guarantee funds shall submit business information in a timely manner as required.

Article 11 The guarantee institution and re-guarantee institution applying for the guarantee fund shall submit a report on the application of the guarantee fund and provide the following information:

(1) Copy of business license and articles of association (photocopy).

(2) Accounting statements and audit reports (copy) audited by an accounting firm.

(3) The guarantee business (including details of guarantee business, risk reserve withdrawal and guarantee business charges, etc.) audited by the accounting firm.

(4) A statement of responsibility for the authenticity of the application materials.

(5) Other materials to be provided.

Chapter IV Fund Application, Review and Disbursement

Article 12 The Ministry of Industry and Information Technology and the Ministry of Finance jointly issue notifications of declarations in accordance with the provisions of these Measures each year to clarify the key funding support ratio, funding ratio, specific conditions, reporting organization, etc. of the year.

Article 13 The financial (financial) departments of the provinces, autonomous regions, municipalities directly under the Central Government, single-planned cities, and the Xinjiang Production and Construction Corps and competent SMEs at the same level (hereinafter referred to as provincial financial departments and provincial SMEs) shall, The requirements of the notification in the current year shall be responsible for the review of the application for guarantee funds in the region.

Article 14: Provincial competent SMEs, together with financial departments at the same level, publicly organize project declarations for guarantee funds within their respective regions, establish an expert review system, and review the application projects based on business information submissions and include them in the guarantee funds. Project management system for management.

Article 15 The provincial financial department and the competent SME department at the same level shall determine the items to be declared based on the expert review opinions, and report the application for guarantee funds and other relevant materials to the Ministry of Finance, Ministry of Industry and Information Technology within the prescribed time.

Article 16 The Ministry of Industry and Information Technology, together with the Ministry of Finance, shall review the application reports and project conditions reported from various places and propose project plans.

Article 17 After review and approval by the Ministry of Industry and Information Technology and the Ministry of Finance, the project plan is publicized to the society and subject to supervision. The publicity period shall be no less than 7 working days.

For projects that have objections during the project publicity period, the Ministry of Industry and Information Technology in conjunction with the Ministry of Finance shall organize investigations and verifications in a timely manner.

Article 18 After the project publicity period ends, the Ministry of Industry and Information Technology will list projects that have no objections during the publicity period and verified no problems after investigation as support projects, and submit a fund utilization plan to the Ministry of Finance.

Article 19 The Ministry of Finance shall review and approve the fund use plan, send the budget targets to the provincial financial department, and allocate the guarantee funds in a timely manner in accordance with the budget management regulations.

Provincial financial departments shall, in accordance with the prescribed procedures, allocate funds to guarantee institutions and re-guarantee institutions in a timely and sufficient manner.

Article 20 After receiving guarantee funds, the guarantee institution and re-guarantee institution shall, within 10 days, report back to the provincial financial department in writing the information about the time, amount, and account processing of the funds.

Chapter V Supervision and Inspection

Article 21 The provincial financial department and the competent department of small and medium-sized enterprises shall jointly implement the management and supervision of the declaration, review and use of guarantee funds. The financial supervisory commissioner's offices in various places of the Ministry of Finance conduct irregular supervision and inspection on the use and allocation of guarantee funds.

Article 22 Guarantee agencies and re-guarantee agencies supported by guarantee funds shall properly keep relevant original notes and vouchers for reference in accordance with financial regulations, and actively cooperate with financial departments at all levels, the Ministry of Finance's financial supervisory offices in all regions and competent SME departments Special inspection.

Article 23 The guarantee institutions and re-guarantee institutions that are supported by the guarantee funds shall submit to the provincial competent department of small and medium-sized enterprises and the provincial financial department before the end of February each year relevant materials such as asset finance, use of guaranteed funds, performance and other materials .

Article 24 Provincial-level SMEs and financial departments shall establish a mechanism for tracking the effectiveness and performance evaluation of guarantee funds, comprehensively evaluate the economic and social benefits of the funds, and report to the Ministry of Industry and Information Technology before the end of March each year. The Ministry of Finance reported the summary report on the use of funds in the previous year and the report on the development of credit guarantee institutions for SMEs in the region. The summary report should include information such as the availability of funds, the amount of funds, and account processing, as reported by the guarantee institution and re-guarantee institution.

Article 25 Guaranteed funds must be used exclusively for the purpose of using and cheating secured funds in violation of regulations, in accordance with the Regulations on Punishment and Punishment of Fiscal Illegal Acts (Order No. 427 of the State Council).

Chapter VI Supplementary Provisions

Article 26 Provincial financial departments and provincial-level SME departments may formulate specific implementation measures based on these measures and in combination with actual conditions.

Article 27 The interpretation of these measures is the responsibility of the Ministry of Finance in conjunction with the Ministry of Industry and Information Technology.

Article 28 These Measures shall be implemented as of the date of issuance. The Notice of the Ministry of Finance and the Ministry of Industry and Information Technology on Printing and Distributing the "Interim Measures for the Administration of Credit Guarantee Funds for Small and Medium-sized Enterprises" (Caiqi [2010] No. 72) was repealed at the same time.