The central government has for months been exhorting the country’s banks to get credit flowing towards the part of the economy that needs it most: the private sector. Guangdong has answered the call, announcing today that it will ensure at least RMB45 billion in low-interest loans are made available via the provincial branch of Bank of China to help fund the growth of small and micro enterprises (SMEs).
From today until 2021, the project will offer support to more than 30,000 SMEs based in Guangdong. Qualified candidates will get loans within three days at an annualized interest rate of less than 5%. Evaluation and intermediary expenses will be exempted.
These loans come in different shapes and sizes. “Fast-Growth Loans” are, as the name suggests, for companies currently working out of their apartment who want to be the next Tencent. They will be able to apply for RMB1.5 million of mortgage-free credit loans during their incubation period, and another RMB1.5 million for a year after they graduate. Best of all, they can apply and draw down the cash online.
“High-Growth Loans” are different. These are for enterprises recognized nationally and those established in “innovative areas” such as high-tech zones. Amounts are flexible.
“Technology Reform Loans”, meanwhile, are aimed at specific enterprises recognized by the government as being in need of an upgrade.
And last but not least, “Liquidity Loans” are for SMEs who already have current accounts or deposits in the Bank of China’s Guangdong branch. Simple application procedures will facilitate access to credit lines of up to RMB 2 million with a one-year balance settlement term.
What are you still reading this for? Get online and grab your cash while stockpiles last.
Read morein Chinese.