China-Singapore Jingwei Client, July 30th (Wei Wei) On the 29th, media reports said that news from the industry has caused relevant regulatory authorities to request that consumer finance companies, banks and other financial institutions in various regions should fully control personal loan interest rates. Within 24%.

Among them, regulatory requirements in some regions require that stock loans with excessive interest rates be cleaned up by the end of June 2022.

  A relevant person in the bank revealed that he received relevant window guidance at the beginning of the month.

Another person from a bank in a certain eastern province told the Sino-Singapore Jingwei client that he had received local regulatory guidance, requiring the loan interest rate to be limited to 24%. The bank will stop offering more than 24% from 0:00 on July 16 The product.

  However, some consumer finance companies and banks said they have not received the news yet.

An individual from a consumer finance company told the Sino-Singapore Jingwei client that it has not received relevant window guidance for the time being, but the local supervision previously required the institution's comprehensive annualized cost to not exceed 24%, so the company's self-operated product interest rate has been within 24% .

  "As far as I know, bank-based consumer finance companies are basically within 24%. It's just that some customers have a long overdue time, and the penalty interest may exceed 24% after calculation." Another consumer finance company told the relevant person in charge. The Sino-Singapore Jingwei client has held a symposium last year to discuss the interest rate issue. The annual interest rate of some online loan platforms and small loan companies may exceed 36%, which may have a greater impact on it.

  In the eyes of the above-mentioned person in charge, the regulation of interest rates in the future will become stricter and stricter. “Management will become more standardized and the openings will become tighter and tighter. This is the general trend.”

  On August 20, 2020, the Supreme People’s Court issued the newly revised “Regulations of the Supreme People’s Court on Several Issues Concerning the Application of Laws to the Trial of Private Lending Cases” (hereinafter referred to as the new regulations), which lowered the upper limit of judicial protection for private lending rates to 4 times the LPR. Taking the calculation of 4 times the 3.85% quoted interest rate of the one-year loan market released on July 20, 2020 as an example, the upper limit of judicial protection for the private lending interest rate is 15.4%.

  It is understood that prior to this, the legal "protection line" of domestic private lending was "two lines and three areas", that is: if the lender sues and requires the borrower to pay interest, the annual interest rate is less than 24% to protect; the lender requests borrowing The people’s court will not support the payment of interest exceeding 24% of the annual interest rate. The people’s court will not intervene if the interest rate is between 24% and 36%. If the interest rate agreed by the borrower and lender exceeds 36% of the annual interest rate, the excess The interest is deemed invalid, and the borrower has the right to request the lender to return the excess interest.

  Whether financial institutions are applicable to the new regulations has caused controversy.

The new regulations point out that the financial institutions and their branches established with the approval of the financial regulatory authorities to engage in loan business are not applicable to disputes arising from the issuance of loans and other related financial businesses.

  In March this year, after the central bank required all loan products to clearly indicate the annualized loan interest rate, the Sino-Singapore Jingwei client had actually evaluated the annualized loan interest rate of some consumer finance companies as high as 35%.

After the relevant requirements are implemented, it may mean that the annual interest rate of personal loans of financial institutions will be lowered to within 24%.

  Dong Ximiao, a part-time researcher at the Institute of Finance of Fudan University, told the Sino-Singapore Jingwei Client that the requirements of the regulatory authorities have a major impact on some consumer finance companies, private banks and online lending platforms, and the installment business of some joint-stock banks may also be affected.

  "But since last year, some consumer finance companies, banks and other institutions have voluntarily adjusted in accordance with the 24% annual interest rate limit. Although there are still some institutions whose loan product interest rates have crossed the line, the proportion is small and is also falling. "Dong Ximiao said.

  He further pointed out that for loan products with an interest rate of more than 24%, there are also two parts: new addition and stock. The new part is very small, and there is indeed some stock, which needs to be adjusted slowly. It is recommended to adjust the decline naturally based on facts.

  In Dong Ximiao’s view, in the past, a small number of consumer finance companies used higher interest rates to cover the high-risk model. This model is not sustainable. These institutions not only need to adjust their business, but also change their development concepts in the future. Customers should not sink as much as possible. Cannot break through the boundaries of their own risk control capabilities, and for some consumers, cannot break through the boundaries of their debt.

  In addition, Dong Ximiao reminded consumers to take a correct view of the decline in interest rates of financial institutions and to borrow reasonably according to their income and risk tolerance, and not to over-borrow.

(Zhongxin Jingwei APP)

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