Service Features   Target Clients   Applicant’s Qualification   Credit Quota        
Loan Period   Interest Computation   How to Apply

You (natural person) may apply for personal consumption loans with CMB for your personal consumptions. Consumption loans are based on mortgage or collateral of properties and titles that you (the borrower) or a third party possess or has the right of disposal, or you may secure joint-liability guaranty from a third party. Consumption loans fall into three categories: short-term loans, medium-and-long-term loans, and recycling credit line.

Service Features
1. Flexible terms;
2. Flexible repayment;
3. Possible for “single-application with multi-release”

Target Clients
All Chinese citizens with full civil rights.

Applicant’s Qualifications
Applicants must have valid identity proof; stable employment, being capable of repaying the principle and due interest in time.

Credit Limit
Personal consumption loans are subjected to no upper limit. Specific Limits are set by China Merchants Bank based on qualifications of the applicants, conditions of their guaranties.

Loan Period
Consumption loans fall into the following categories by time:

1.	Short-term loans : less than 12 months (inclusive);
2.	Medium-and-long-term loans : 12 months to 3 years;
3.	Recycling credit lines that allow the applicants to use the credit line according to their actual needs on a recycling basis, within a certain period of time, and within a certain credit line.

Interest Computation

1.	Loan interest rates are subjected to relative rules set by People’s Bank of China;
2.	For short-term loans (less than 12 months, inclusive), the legal interest rate on the contract signing day is applied; There is no responding adjustment in the whole duration even if there is any adjustment to market interest rates; Due interest can be settled on a monthly basis, quarterly basis, or upon maturity of the loans;
3.	For medium-and-long-term loans (more than 12 months), the interest rate is subjected to annual adjustment. The legal interest rate on the contract effective day is applied for the first year. The interest rate on the same day next year is applied for the second year, and the same is applied for the following years. The 20th day of every third month of a quarter is set as interest settlement day for medium-and-long-term loans.
4.	Recycling credit lines are subject to interest rates of similar loans with same duration within credit line covering period, and the due interest is computed case by case, based on the actual amount of loan under the credit line and duration.
5.	Other rules: Due interest not paid on time during repayment term is subjected to compound interest based on the rate set in the contract, and subject to compound interest calculated on penalty interest rate after repayment term; penalty interest not paid on time after principal repayment term is subjected to compound interest calculated on penalty interest rates.

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;
·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. Applicants with 3rd-party guaranty should provide written consent of the guarantor;

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:
·signs loan contract and relative guaranty contract with the bank;
·secures notary, insurance and mortgage/collateral registration.

4. Release of loan: After finishing 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.