Bank loans in China

What a funny thing to ask...well I find it funny.  I have lived in China now going on 11 years and I still don't understand the banking system here.  If you are from a "western" country then the banking system here will drive you crazy.  Some things are great, no ATM fees as long as it's from your bank in your city...but other things can just drive you nuts.

I have been trying for the last several years to attain a simple credit card, I'd even take one with a set limit!  But no one here seems to know just what the rules are for foreigners to get one and the rules change frequently.  I have been told to get the card I need to be in China 10 years, well check that one off...now I'm being told it has to be 10 years in one city...well soon we can check that one off too.  Then I was told I would need to have 7 years with my employer...well check that off.  Then someone told me if I were to buy a car (which I don't need) I could get one.  I have a Chinese drivers license...but soon after I went through that process I decided driving here is just insane, so forget buying a useless car.  Then I was told if I were to buy an apartment..(for a credit card with a $500 limit???) now that's insane.  Finally I have been told to just marry a local...well that too isn't a good idea just for a stupid credit card.

You may be asking, why a credit card???  Well try booking airline tickets and you will get your answer.  Oh, I am linked by computer to my bank here but for some reason when I try to buy the ticket it won't accept my debit card...the stupid site ONLY wants a credit card.  I get it done by having my employer do it but it's a pain.

That's just one example of how banks here are different.  Let me be frank, I run a college program and send Chinese kids abroad.  Last year I took one of my students to California, within 6 weeks he had a California ID card (I've been in China 10+ years and can't even get a green card), he had a social security number and he even got a credit card from the bank with a limit because he is a student...go figure that one!  He's in my country 10 minutes and gets everything...I'm in his country 10 years and can't get anything...LOL

The only thing I can say for sure about banking in China is you need to have a good Chinese friend who can help you.  Don't try to navigate this system on your own, you will only get frustrated by it.

I recently was shopping for a car in Shanghai.  I was hoping to get a hybrid or electric car so that the Shanghai license plate would be available for free.  The car I chose was around 170,000 RMB.  I had about 50000 to put down.  The dealer said they would run my credit and get back to me and I did leave a deposit on the car.  After about 5 weeks they finally got back to me and said that car loans are not available to foreigners but they would still continue to run my credit just to see the outcome.  I knew the credit wouldn't be a problem. I had been here for six years and had been making about 23000 a year.  I went to other dealers and basically got the same answer.  No car loans for foreigners.  I was told to try the banks and more specifically, foreign banks.  In the end I went with a less expensive car and paid 100,000 cash for it and got an outside Shanghai plate for it.  There was no way to afford a Shanghai plate in my current financial position.  But I did end up getting a new decent car for that price.

Hello hello

Thats a good question, I was hoping to learn more about this thing, however I can only see 2 replies so far..

So here is my "crazy" experience; I've been receiving "cold calls" from agents who help with bank loans. Agents are people who work for so called small financial institutions, who are basically middle men between you and the bank. They ask you tons of questions, like what's your salary, provident fund etc.. Here's my suggestion, tell them you are a foreigner, thus avoiding waste of time for everyone. Because in most cases, they can't help you. Their work is to assure you are eligible for bank loan.

However, according to my observations, there's only one bank who can work with foreigners - Standard Chartered. Here are major required documents you have to provide: passport (with valid visa), labor contract with your salary, 1 year income statement, 1 year tax statement, work permit, police registration. Owning a property (real estate) in China makes everything much easier but also gives you lower interest rate.

I prepared everything and went to agents office. After seeing my documents, they make an appointment with the bank employee for further procedures, which was the next day, saturday.

During the meeting at Standard Chartered, we discussed every detail, including amount of bank loan and interest rate. After agreeing on terms, we went to another room, to finalize the deal with another bank employee who was responsible for technical aspects, such as registering in the system...

Here's the kicker!! There was a form where we had to fill in my country... Kazakhstan.
Guess what, they couldn't find KAZAKHSTAN in the list of countries in the system!! WTF!?!? Among almost every country on this planet, there was no Kazakhstan! Which I thought was bullshit, therefore I asked them to show the list to me. They didnt want to show it to me referring to their company policy.

So, I created quite a scene, threatening them that I will complain about this, because I thought it was a ridiculous situation. Refusing to leave, I insisted on taking their names and work numbers, which they werent so keen to giving in the beginning. After some effort, I was able to get everything I wanted. Which resulted in them "shitting their pants".  I was just pissed that i wasted my time and they failed to explain what was the real reason.

No, I didnt complain, but it was certainly a good experience.

Anyway, if you need a bank loan, just go directly to Standard and Chartered.

Dear Mr. Kazakhstan (Serik):

I love your country...lived there for a few years.  I found it to be "random" most days but that made life interesting.  China by comparison is just "insane"...which makes life more frustrating. 

Good for you that you were persistent and didn't give up.  I have found that to be the key trait here to getting things done.  The Chinese like to frustrate a foreigner to the point where we will just walk away rather than continue to pursue it...but if we stick to it and put the pressure on, they usually give in.

I am still laughing this morning about how they couldn't find Kazakhstan...that big thing to the west, right next to them on the map, and they couldn't find it???  WOW, next time inform them it's next to Xingjiang Province and Urumqi...that will get them to realize where it is.  LOL

I am a Chinese American and have been working and living in Chengdu for the past 6 years.
I am a doctor at the Chengdu Angel Women's and Children's Hospital. I banked at Bank of Chengdu and ICBC and tried to get credit card from both without success.   During my second year here Bank of China tried to get my hospital's business so I applied and got a 10000 yuan limit card when they were visiting the hospital.
But, CITIC Bank also was getting business from us and I tried to apply for a credit card and was refused, because I am using my passport for the id number......crazy.
Then, 3 years ago, I was banking at ICBC and they were having a promotion for credit cards and the staff helped me apply and got me a 5000 yuen limit card......crazy again.
I don't think there is a policy in the banks about credit card.......

Dear Leossyang:

Yep there is no policy and it changes like the wind.  I have been actively trying for over 5 years but nothing so far.  They told me I had to have 6 years with one employer and when I did that, it became 8 years and now they are saying 10 years...it's just crazy because there are no rules.  I have been in China since 2007, I have worked for my current employer since 2011, I have lived in my same apartment since 2012, I can show steady employment and I just recently was presented the Changchun Friendship Award which is a big deal.  I am now trying to get my Chinese green card and maybe with that they will let me have a small line of credit...who knows.  I don't need anything as big as 10K I just want maybe 5K...just enough to book a flight now and then...insane.  Oh add to that I have over 100K on deposit???  Like I said good luck trying to get a credit card in China when you are not Chinese.

I am applying for a business loan. Thank you

As a consultant I'm currently working for a commercial bank client in China. I'll try to let the management notice this problem.

Hope I can get some good news for you later...

@Priscillahi