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

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.