BUYERS in the market for a new car in Fuzhou, capital of East China’s Fujian Province, can now benefit from direct loans being offered by the city’s sub-branch of the Agricultural Bank of China (ABC).

　　A direct loan for a motor vehicle differs from an indirect credit extension by circumventing intermediaries such as car dealers.

　　This simplifies borrowing and purchasing procedures for buyers. The loan can be for up to 90 percent of the car price and must be paid off in eight years.

　　Auto buyers can guarantee their loan through securities pledges, insurance policies and housing mortgages.

　　According to bank statistics, ABC Fujian Branch began to offer loans to auto buyers in 1998 and has since extended nearly 500 million yuan (US$60 million) to more than 30,000 individuals.

　　By the end of August this year, the bank had registered 230 million yuan in outstanding loans for auto purchases, 140 million yuan more than the same period last year. (Xinhua)