Credit Line
Introduction
Credit line refers to a flexible, convenient and revolving product provided by Bank of China to the customers. Bank of China may quickly extend the short-term credit to customers regardless of its accumulated amount and frequency, as long as the balance of credit extension is not over the standard of corresponding service.
With flexible arrangement, total credit line can be further divided into limits for different products such as loan, trade finance, non-financing Letter of Guarantee, Financial Market Product, etc.
Features
- Provide convenience to enterprises' short-term financial arrangement. Since credit line can be revolved, financial plan of enterprises may become more definite and systematic. Enterprises needn't arrange funds for current operations under the credit line.
- Meet demand of enterprises for general financing. Credit line includes varieties of limits for different products such as loan, L/C, letter of guarantee and other credit operation services, which covers key financing demands of customers. With approval of Bank of China, such limit can complement and overlap each other, increasing its utilization.
- Simplify approval process of credit line of enterprises. After credit line is granted, according to the credit line contract’s provisions, the customers are entitled to decide how and when to use it at their own discretion. Thus customers can avoid the single loan review procedure, such as due diligent steps, or fulfilling the security conditions of each time.
- Differences between credit line and existing signle loan products
| Credit line | Single Loan product | |
| Scope of Service | Varieties of credit operation portfolio can provide customers with comprehensive financing convenience. | Focusing on one aspect financing demand of customers, it can only provide single financing service. |
| Enforcement of Rights | Customers can discretely choose single or multiple credit operation products with convenient procedures. | Single loan product requires examination of customers' qualification extension with quite complicated procedures. |
| Credit Line Adjustment | Each credit operations can be among others adjusted, increasing its efficiency. | It is matched with one related service with strong constraint. |
Currency
Viet Nam Dong.
Borrower can apply for foreign currency loan provided such loans used as overseas payment for imported goods and services and for borrowers to manufacture and trade goods which are exported through Vietnam's border checkpoints, provided the foreign currency derived from the turnover is sufficient to repay such loans (excluding foreign currency sources from capital injection, investment capital, foreign loans or other sources not from production and business operation).
Interest rate
Applied in accordance to the loan interest rate management regulations of the Bank and the provision of contract.
Related Charges
Charges are subject to the contract.
Target customers
Independent legal person who are credit target customers of Bank of China can apply for appropriate credit line according to relevant regulations.
