OREANDA-NEWS. February 27, 2012. In an effort to offer another funding source for micro and small enterprises (MSEs) by providing them personal business loans to address their working capital shortage, over the past few years ICBC has disbursed personal business loans to MSEs in line with their business characteristics, targeting at enterprises in merchandise markets, owners of micro and small private businesses and shareholders of private enterprises. ICBC has provided personal business loans to 400,000+ individual industrial and commercial households and MSEs as shown by its outstanding personal business loans of nearly RMB 270 billion as at the end of 2011. Around RMB 79 billion in new personal business loans, or a jump of 42%, were released in 2011, reported the press-centre of ICBC.

An ICBC executive said, the main criterion to release personal business loans is the personal credit of business owners. Borrowers can apply anytime as long as they can provide necessary documentation required for application: identity document, business licence, proof of repayment ability and purpose of loan. Personal business loans offer fast approval, can be secured under different guarantee options and repaid through many ways, providing a fast and convenient solution for individual industrial and commercial households and MSEs to access bank loans.

In parallel to personal business loans, ICBC also launches "Merchant Friend Loan", an exclusive loan tailored to MSE members of "ICBC Merchant Friend Club". Revolving limit of a "Merchant Friend Loan" is determined by the loan guarantee provided by the members. Once the loan is approved, no need to be approved again during drawdown. Moreover, loan interest only starts after drawdown by the members, who can also repay in advance depending on their use of loans in order to reduce borrowing cost.

Owners of micro/small businesses are all welcome "Merchant Friend Loan" to address their need of "short-term, frequent, urgent" working capital. As at the end of 2011, ICBC has established nearly 3,000 "ICBC Merchant Friend Club" nationwide, serving more than 2.9 million MSEs and individual industrial and commercial households. Total outstanding personal business loans to members of Merchant Friend Club already reached over RMB 77 billion at the end of 2011.