Credit line refers to the loan line given to you by a bank or institution after a comprehensive evaluation of your credit qualification. Credit line, also known as "credit line", is the maximum amount of borrowers allowed in the agreement between borrowers and banks. However, this provision is not legally binding. If the bank lacks credit funds or the customer's financial situation is not good, the bank can change the credit limit or refuse to provide loans according to the situation. The credit line is the maximum loan limit agreed by the borrower and the bank, and the effective period of the credit line is usually 1 year.

Under normal circumstances, within the credit limit, you can use the loan as needed at any time. However, banks are not obliged to issue loans. If your reputation deteriorates, you may not get a loan even within the credit limit. At this time, the bank will not bear legal responsibility.

Credit limit management table:

The credit line management mode is different in different periods.

Since 1985, the annual loan limit management is mainly controlled by the People's Bank of China according to the demand for credit for national economic growth, and the total amount of credit is formulated and then distributed to specialized banks. According to the comprehensive credit plan approved by the state and the principle of "unified planning, fund division and actual deposit and loan", the head office of each bank puts forward the branch loan allocation plan and reports it. Accordingly, the head office of the People's Bank of China issued a loan notice, and the local branches of the People's Bank of China issued loans to the branches of specialized banks according to the capital demand and payment progress.

Branches of specialized banks must use credit funds within the loan amount approved by the superior bank, and shall not break through without authorization. If the short-term capital turnover of branches of specialized banks is difficult, they can horizontally finance funds within the specialized banking system to adjust the surplus and deficiency. If there are still difficulties, you can apply for a temporary loan from the branch of the local people's bank. However, if an over-loan plan is needed at the end of the year, an application must be made to the headquarters in advance, and the loan amount can be increased after approval.

For departments and industries that are related to the national economy and people's livelihood and need to support development, when formulating credit plans, we should implement a credit-leaning policy and increase the scale of loans to these departments in a planned way. For some special departments and industries that need support, preferential treatment will be given in terms of loan quantity and interest rate. Since 1986, this method has been gradually improved. Loans are subject to "quota management" and quarterly monitoring. The maximum loan limit is approved once every quarter.