How to transfer a commercial loan to a contingency fund

by Business Loan July. 27,2023
How to transfer a commercial loan to a contingency fund

1. Consultation accepted.


2. Submit information. Submit relevant information prescribed by the lending institution


3. Acceptance of the loan. For eligible borrowers, the entrusted bank performs pre-loan calculations in the contingency fund system and, based on the results of the trial calculation and the ability to repay the loan, negotiates with the borrower to determine the amount of the loan, duration, interest rate and method of repayment;


4. Sign a contract. The loan applicant signs a loan agreement (mortgage loan) with the original commercial loan bank and a guarantee contract with the guarantee company designated by the bank under the direction of the bank.


5. Pre-deposit fund. The loan applicant uses his own funds to deposit the difference between the balance of the initial commercial loan and the transfer loan to the deposit account opened by the loan bank for the early settlement of the initial commercial loan.


6. Loans are granted. The management of the loan funds and the loan bank notifies the borrower of a new loan that the loan funds of contingency funds and funds deposited by the borrower must at the same time pay the initial commercial loan.


7. Manage the mortgage. The security company handles the procedures for cancelling the mortgage of the initial commercial loan on behalf of the security company, and completes registration procedures such as the mortgage of the cpf loan.