OREANDA-NEWS. July 19, 2011. In an effort to open another channel for small enterprises to raise funds through offering of integrated financial services, over the past few years ICBC disburses personal business loans to small business owners in line with their business practices, targeting at enterprises in merchandise markets, owners of small-and-medium private businesses and shareholders of private enterprises. During the first five months of this year, ICBC has extended a total of RMB 57.446 billion in personal business loans or an increase of RMB 23.643 billion when compared to the same period last year. Balance of personal business loan rose RMB 26.954 billion from the beginning of the year to RMB 120.664 billion, reported the press-centre of ICBC.

The main difference between the personal business loan and the corporate loan to small businesses, according to an executive with ICBC, is the personal credit of the business owners. During the application, the borrower only need to supply the identity document, business certificate, proof of repayment capability and purpose of loan. The faster approval process, many ways to guarantee and flexible repayment options enable individual industrial and commercial households, small and micro enterprises to apply easily.

Besides the personal business loan, ICBC leverages "ICBC Merchant Friend Club" platform to launch the "Merchant Friend Loan" specially for members of the Club. In a "Merchant Friend Loan", a revolving credit limit is given within the highest guaranteed limit based on the loan guarantee supplied by the member. Once the loan is approved, there's no need for members to get approval again during the drawdown. They can draw the loan just use the bank card or via Personal Internet Banking. The loan can be used revolvingly within the credit limit. Interest of the loan only starts after the loan is used through spending or transfer. Members have the option to repay the loan in advance anytime depending on the use of loan in order to reduce financial cost.

The "Merchant Friend Loan" is warmly received by the small business customers since its launch. In May this year, ICBC released the first "Merchant Friend Loan" to a computer distributor in Jintian Commercial City, the largest computer retail market in Jiangmen's Xinhui District. Summer vacation is a peak season for selling computers. However, this computer distributor related the problem of looking for funds to buy computer accessories for the sales. Now, the problem is solved after applying for the RMB 300,000 of "Merchant Friend Loan" from ICBC. The loan can be drawn anytime whenever necessary and repaid once the receivables are collected, no impact to the business, bringing more businesses and very convenient, since the loan enables maximum usage of funds.

At present, ICBC has set up 1269 "ICBC Merchant Friend Clubs" nationwide serving 1,158,600 members. Growth of personal business loans to members has been impressive. This year, ICBC has disbursed RMB 14.794 billion in new loans with a balance of RMB 24.772 billion, accounting for more than one-fifth of all ICBC personal business loans.