Home > Precious Metal > Finance & Wealth Management > Loan Pledged under Precious Metal
Loan Pledged under Precious Metal

☆ Service Introduction
This is a loan service where precious metal recognized by ICBC can be used as pledge. Two kinds of pledges:
1. Standard precious metal that can be delivered at Shanghai Gold Exchange.
(1) Standard gold. Including: Au99.99, Au99.95, Au100g, Au50g.
(2) Standard silver. Including: Ag99.9, Ag99.99.
(3) Standard platinum. Including: Pt99.95.
(4) Others.
2. Physical gold under "Ruyi Gold" series which are issued and can be redeemed at ICBC. Including: gold bars with purity of 99.99% and weighing 0.02 kilogram, 0.05 kilogram, 0.1 kilogram, 0.2 kilogram, 0.5 kilogram and 1 kilogram as well as other physical gold products under "Ruyi Gold" series.

☆ Target Clients
Corporate clients or personal customers.

☆ Features
1. Increased liquidity of precious metal asset.
2. High credit line to meet customers' financing needs.
3. Simple application steps.
4. Loan pledged under standard gold will not use up the credit line.

☆ Example
1. Pledge loan by personal customers;
(1) Minimum credit line of RMB 5,000 for a single loan;
(2) Loan tenure not longer than 1 year (inclusive);
(3) Loan rate: PBOC rate of the same term same class, floating range according to PBOC rules;  
(4) Repayment of principal and interest one-time when loan expires.
2. Corporate clients can apply for liquidity loan, small business loan, project loan, L/C, guarantee. The loan amount, tenure, interest rate are different according to rules for different products. 

☆ Pledge rate
Pledge rate = loan amount/assessed value of the pledge, 80% the highest. Assessed value of the pledge = arithmetic mean value of weighted average price in the first 5 trading days at Shanghai Gold Exchange.

☆ Service Flow
1. Borrower submits application.
2. ICBC starts internal approval on the application.
3. ICBC signs contract with the applicant, pledge contract with the pledgor.
4. ICBC and pledgor proceed to register the precious metal pledge.
5. ICBC releases loan.
6. Borrower repays the loan principal and interest on time.
7. ICBC and pledgor cancel the precious metal pledge when the loan expires  

☆ Service Channel
The service is available at all subsidiaries with loan services opened for corporate clients and personal customers.
1. Loan pledged under standard precious metal:
The pledgor and ICBC register the pledge via the member service system of Shanghai Gold Exchange.
2. Loan pledged under Ruyi Gold :
The pledgor goes to ICBC repurchase outlets for ICBC staff to inspect the pledged Ruyi Gold and store the Ruyi Gold in the outlet.

Note: Information herein is for reference only. Industrial and Commercial Bank of China Limited reserves the final right of interpretation. Refer to the announcements and regulations of local branches for further details.