General Office of the People's Bank of China and General Office of the National Administration of Financial Regulation, Circular on Duly Carrying Out the Administration of Commercial Property Loans
中国人民银行办公厅、国家金融监督管理总局办公厅关于做好经营性物业贷款管理的通知
February 19, 2024 | BY
Susan MokThe limit on a commercial property loan may not exceed 70% of the appraised value of the property
Issued: January 24, 2024
Main contents: In principle, the limit on a commercial property loan may not exceed 70% of the appraised value of the property for which the loan is taken out. A commercial bank shall negotiate with the borrower to determine the loan interest rate and the method of repaying the principal and paying the interest based on market principles and in light of factors such as the operating condition of the property in question. In general, the term of a commercial property loan may not exceed 10 years, and at maximum may not exceed 15 years. Furthermore, the loan maturity date shall be at least 5 years earlier than the expiration date of the title certificate for the property in question.
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