Service Features Target Clients Applicant's Qualification Credit Quota
Loan Period Interest Computation How to Apply
China Merchants Bank offers personal automobile consumption loan upon your request for purchase of self-use cars in your name.
Service Feature
1. You may chose to be our "direct client" or "indirect client" – Before purchasing a car, you may apply for automobile loan line, secure the loan before you actually buy a car. You may also apply for loan through car dealers or insurance companies.
2. Payback period up to five years;
3. Even amount monthly installments or decreasing-amount monthly installment: flexible choices and easy payback burden;
4. Credit insurance is usually offered by an insurance company, which made everything simpler for you.
Target Clients
The applicant must be a permanent resident to the city where the creditor bank locates. He or she must have full civil rights.
Applicant’s Qualification
1. The borrower should be fully employed with good credibility, and capable of repaying the loans and due interests;
2. Monthly installment burden should not exceed 60 percent of the his or her family’s disposable income (family disposable income = total income – indispensable cost and expenditures);
3. The applicant should be able to provide assets accepted by the Bank as mortgage or collateral, or a third party capable of repaying the loans and interest due as a joint-liability guarantor.
Loan Limit
Usually does not exceed 80 percent of the market price of the car purchased.
Loan Period
Usually for a period of 12 months to 3 years, maximum 5 years.
Interest Computation
1. Interest rate: Automobile loan interest rate is same as other loans for same period as prescribed by People’s Bank of China.
2. Interest rate adjustment: Loan interest rates are readjusted every year, which means that after the signing of automobile loan contract, the interest rate is adjusted on the exact same date of loan released each year thereafter, in line with the interest rates prescribed by People’s Bank of China.
3. Other rules: Interest and penalty interest during the extension period are calculated according to the rules and ordinance set by People’s Bank of China.
How to Apply
1. Application: Applicant please carries the following documents to banking offices and fills in application forms:
Valid ID and marital status proof;
Employment and income proof issued by authorities recognized by the creditor;
Car purchase agreement or contract signed by car dealer designated by the creditor;
Certificate of deposits with total value no less than down payment, or official receipt of the down payment;
Applicant with property as mortgage/collateral should provide a list of these property, proof of ownership, written consent by the right owner (including joint-owners of the property) agreeing to surrender the object as mortgage/collateral, value assessment issued by competent authority;
Applicant with 3rd-party guaranty should provide written consent of the guarantor, related credibility proofs as well as a moderate proportion of guaranty fund;
Other documents deemed as necessary by the creditor.
2. Examination and Approval: The bank investigates the applicant’s guaranty and credibility, examines and approves the application according to a set of rules; the bank informs the applicant the results after all the examinations.
3. Signing of Contract: Upon approval from the bank, the applicant goes through the following formalities:
Applicant applies for automobile consumption loan credibility insurance;
Applicant signs loan contract and relative guaranty contract with the bank; secure notary, insurance and mortgage/collateral registration.
4. Release of loan: After applicant finished all procedures, China Merchants Bank releases the loan to personal account of the applicant; and upon the applicant’s instruction, the bank transfers the proceeds to the account of beneficiary.
