In cooperation with China Construction Bank, Alibaba has launched a convenient online loan service in China and six companies have reportedly received a total of RMB3.1 million in low-interest loans.
The new "Online Warranty Loan" is a kind of loan that does not need any mortgage. This kind of loan is usually available to an applicant consisting of three or more enterprises each of whom need to undertake the responsibility of paying the total loan they've applied for in case the other two parties can not pay back their respective shares. The applicants must also have membership in Alibaba's Chengxintong or Chinese Suppliers.
Each company within the combo can reportedly apply for a maximum of RMB2 million in loans over one-year period, and if the concerned parties have not used the loans after the term expires, the combo will disband automatically.
The service is now available to companies that have been registered for over 18 months at the Department of Industry and Commerce in the three trial cities of Hangzhou, Shaoxing and Jiaxing.