Individual people in Shanghai, China's economic and financial center, can now apply with the Bank of China for loans solely based on their credit records.
Information from the Shanghai branch of the Bank of China shows the loans available range from 10,000 Yuan (US$1,205) to 100,000 Yuan (US$12,048).
Starting from this month, Chinese residents, including Chinese passport holders, people from Hong Kong, Macao and Taiwan, and foreigners with legitimate residency in Shanghai are entitled to apply.
Loans will be approved once the credit records of the applicants have been acknowledged by the bank, and the loan limit will depend on the specific record grades and the applicants' ability to repay.
If the applicant is capable of repayment, but fails to pass the credit check for the amount applied for, a third party can act as guarantor.
More than 3.25 million Shanghai people now have credit records.
(Xinhua News Agency August 10, 2003)
