Watercraft Mortgage Credit is a sort of medium- and long-term mortgage credit that the China Merchants Bank offers to eligible domestic corporate buyers of watercraft. It builds on mortgage collateral of the watercraft to be purchased and other guaranty conditions, and has operational revenues of the watercraft as a major fund source for repayment.

Service Applications
Ships each with a tonnage of 1,000 tons or above and individual price of less than RMB30 million yuan. They include container carriers, oil tankers, and ships for general purposes such as roll-on roll-off vessels. They can be newly built ones or second-hand ones in service for less than 10 years, but not including those under construction.

Fundamental Conditions for Corporate Loan Appliers

1.	Corporate legal persons and other economic institutions approved and registered by industrial and commercial administrative authorities (or superior competent departments), holders of licenses for watercraft operation issued by communications and water-borne transportation administrative authorities;
2.	In normal operation with satisfactory financial conditions, and good reputation in bank relations;
3.	With basic settlement account or ordinary settlement account at the China Merchants Bank.

Guaranty Conditions for Loans

1.	Watercraft to be purchased as mortgage collateral + repayment guaranty insurance policy designating the China Merchants Bank as the primary beneficiary + joint and several obligation guaranty offered by the watercraft builder or dealer;
2.	Otherwise by hypothecation in cash, government bonds, and other bonds held by the applier or any third party, deemed by the China Merchants Bank as sufficient in value.

Initial Payment of Loans, Period and Ways of Repayment

·	The minimum initial payment from the borrower for a newly built watercraft equals to 30 percent of purchase price; and that for a second-hand watercraft is 50 percent of the purchase price;
·	Repayment period should not exceed 10 years;
·	Loan will be repaid through equal-amount monthly installment.

Service Advantages

·	Loan repayment through monthly installment in longer period, with lighter pressure for repayment on borrowers;
·	Helps expand watercraft builders’ sales and production scale, leading to stronger competitiveness;
·	Promotes trading in equipment for general purposes as well as development in marine and in-land water transportation.