Loans to help business startups

Loans to help business startups

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Loans from the city government of Shenzhen to start a small business are now available for UNEMPLOYED holders of Shenzhen hukou, a permanent residence permit.

Greenhorn entrepreneurs can avail loans of up to 100,000 yuan while people who start a business in partnership will be offered a maximum loan of 500,000 yuan.

Those who will be eligible for the new loan policy are classified into eight groups including registered jobless people, vocational school students who graduated less than two years ago, returned overseas students and the disabled ones.

Applicants will be allowed for a second loan and shall be given the same rates provided they have paid in full the first one. Capacity to pay the new loan will also be assessed.

Interest will be covered by the government subsidies for the new applicants having low-profit projects. Fifty percent of the interest will be covered by said subsidies the second time they avail of the loan for the same project.

One or two-year extension for the loans can be granted for new applicants however no government subsidies will be provided for the extended period.

Those who will be approved but fail to repay loans will be blacklisted from the city’s personal credit system.

Labor authorities said the new loan policy aims to promote entrepreneurship among the unemployed.

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