T/LADA 028-2026 Car loan lending business and borrower qualification management standards

Scope

4. Borrower Qualification Requirements 4.1 Age and Civil Capacity The borrower must be at least 18 years old and have full civil capacity, which is a basic prerequisite for the loan. 4.2 Legal Identity and Residence The borrower should be a Chinese citizen with a legal identity and fixed residence within China, ensuring the traceability of the loan and the borrower's stability. 4.3 Stable Income and Repayment Capacity The borrower must have a stable job and income, which is an important basis for assessing their repayment capacity. The borrower should be able to guarantee on-time repayment of the loan principal and interest, ensuring the safe recovery of the loan. 5. Credit Status Requirements 5.1 Good Credit Record The borrower's personal credit should be good, with no bad credit records such as overdue payments or cash-out transactions on their credit report. This is a key indicator for assessing the borrower's credit risk. 5.2 No Illegal or Violative Behavior The borrower should comply with national laws and regulations and not engage in any illegal or violative activities, ensuring the legality of the loan. 6. Loan Contract Provisions 6.1 Clear Loan Terms The loan contract should clearly stipulate key terms such as loan amount, term, interest rate, and repayment method, ensuring that both parties' rights and interests are protected. 6.2 Mortgage or Guarantee Requirements Depending on the loan amount and risk assessment, auto finance companies may require the borrower to provide collateral or guarantors to reduce loan risks. For car mortgage loans, the vehicle must have clear ownership and not be subject to mortgages or pledges.

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