The credit limit of Merchants is not a credit card limit, but a loan limit.

China Merchants Bank’s credit line means loan limit. It is the maximum borrowing limit stipulated in the agreement between the borrowing enterprise and China Merchants Bank. The validity period of the credit line is usually one year.

Under normal circumstances, within the credit limit, an enterprise can draw down the loan as needed at any time. However, banks are not obligated to lend money. If a business's creditworthiness deteriorates, the business may not be able to borrow money, even within its credit limit. At this time, the bank will not bear legal responsibility.

Extended information

Credit card limit, also known as credit card available limit, refers to the maximum amount that can be used by the cardholder's credit card, which includes the credit limit (that is, the maximum amount that a credit card can use) overdraft limit) and the amount deposited on the credit card.

The limit of any credit card depends on the effective income and asset security value provided by the individual during the application process. The credit limit of a credit card is positively correlated with the applicant's income and secured assets, that is, the higher the income and secured assets, the higher the credit limit obtained.

Therefore, applicants must provide proof of income and statement of asset security. Asset guarantees include fixed assets such as real estate and cars, as well as current assets such as savings and bonds.

Baidu Encyclopedia - Credit Line

Baidu Encyclopedia - Credit Card Line