China News Service, February 3 (China News Financial Reporter Zuo Yukun) "Dear customer, you have good credit in our bank. We specially invite you to apply for our bank's 'XX loan'. The lowest discount is 3.0%, and the maximum limit is It can be up to 300,000 yuan, and the amount and interest rate are subject to the final approval results."
At the beginning of 2024, the competition for consumer loans among different banks can be described as "full steam". Products with interest rates as low as 3% or even below are emerging in an endless stream, and news of ultra-high credit limits has frequently come.
Lowering loan interest rates, increasing loan limits, and extending loan terms are all considered to be banks' "small profits but quick turnover" behavior to attract customers. Are these fancy consumer loan products reliable? What risks should we pay attention to?
Data map: Bank staff count currency. Photo by China News Service reporter Zhang Yun
The interest rates on preferential products are mostly around 3%
Which bank has the lowest interest rate? Which bank has the highest limit? Which bank has the fastest approval time? As the Spring Festival approaches, the "price war" at the bank's retail end is in full swing, giving financial consumers more choices.
China News Finance’s investigation found that in order to achieve a “good start”, banks have indirectly lowered interest rates mainly through launching new products, issuing coupons, group shopping, etc.
Yang En (pseudonym), the business manager of a joint-stock commercial bank in Beijing, told reporters that currently the most cost-effective among their consumer loan products is a group activity. The annual interest rate for a group of 3 people is 3.60%, and the annual interest rate for a group of 10 people is 3.60%. The interest rate is 3.25%. The largest group is 20 people, and the annual interest rate is 2.98%.
"If you want the lowest interest rate, you first need to have a credit of 200,000, as well as some social security and other conditions for review. Of course, if it is not enough, you can also enjoy a lower interest rate depending on the situation." Yang En introduced that coupons will be issued in group activities, and the repayment method is: Within 1 year, interest will be paid first and then principal, and the principal and interest will be equal for individual customers. “There have been a lot of interested customers recently, and a group was just formed last week.”
"The target groups of the event are mainly two types. One is the bank's existing high-quality customers, and we usually take the initiative to invite them; and the other is some new card-opening customers, who of course need to go through a relatively strict qualification review." Yang En told reporters, The final interest rate will be determined by the system based on personal repayment ability, credit history, etc. They will also be required to emphasize to consumers that not everyone can enjoy the lowest interest rate.
Applicants will discover these thresholds during actual implementation. Mr. Su, who is about to renovate his new house, has recently been comparing consumer loans from major banks. According to his understanding, the loans that can reach an extremely low rate of less than 3% are, first, strict consideration of comprehensive indicators such as provident fund, education, age, etc., and second, the quota. There are restrictions, such as you can only use the coupon once or you can only lend 100,000 yuan. If you borrow more, you can only get a higher interest rate.
"There are also some banks that are more 'volume-oriented'. The interest rate is about 3.5%, which is not particularly low, but they have a lot of main coupons. The account manager can even give you 100 coupons, which you can borrow at any time." Mr. Su mentioned.
After being introduced by a friend, Mr. Su applied for a loan product with a 3.18% interest rate from a bank. "I saw on the mobile phone that the lowest interest rate was only 3.68%. I had to go to the account manager offline to get the low interest rate. The bank review result showed that the qualifications were good, but I could only apply for a limit of 300,000 yuan." Mr. Su said, business The employee said to himself that almost 80% of people like him, who have a relatively stable job income and work in a large local enterprise, can succeed.
Data map: Bank. Photo by China News Service reporter Qu Honglun
Large-amount consumer loans are not “easy to borrow”
Just like Mr. Su's experience, the limit of 300,000 yuan is already the "maximum limit" for most customers. However, in the fierce competition at the beginning of the year, there have been some changes in the limits of loan quotas.
According to media reports, the upper limit of loan quota approval for some banks will be adjusted to about 1 million to 2 million yuan this year. For example, the Jiangsu Branch of China Construction Bank published an article on its public account introducing the "Jianyidai" product: the annual interest rate starts at 3.45% (simple interest), the maximum loan amount is 1 million yuan, and the maximum loan period is 60 months.
The reporter consulted a salesperson from China Construction Bank in Jiangsu. She said that this is not a product launched for the Spring Festival. It has been promoted in 2023. The focus is on the very strict requirements for the unit nature and provident fund of the customer group. "And not all the money may be able to go to your account. For example, you may have to find a decoration company to help you pay it off, and you may have to repay it in advance."
"The main purpose is to ensure that the money loaned out by customers is used for car purchases, renovations, education, travel, etc., rather than purchasing houses or investment products such as stock funds." said the above-mentioned salesperson.
Xiao Zhao (pseudonym), a personal loan salesperson in Shanghai, told reporters that a consumer loan product they are currently promoting also has an interest rate as low as 3%. The specific situation depends on the personal loan equity score of the bank. The event is also very short and will end before New Year's Eve.
"As for the maximum loan amount, ordinary customers can get a loan of up to 300,000 yuan, and business owners who open a company can get a loan of 500,000 yuan." Xiao Zhao said that if you want to borrow 1 million yuan, you need collateral. , the maximum credit loan she handled was 500,000 yuan.
"However, during the implementation process, we will indeed find that the current 300,000 yuan of funds is not enough for many people, especially in first-tier cities like Shanghai where consumption is high, so this part of the quota is unlikely to solve the problem." Xiao Zhao said Recently, many people have come to inquire about large-amount credit loans, but regulatory authorities and banks must still consider the risk of over-indebtedness.
What risks need to be aware of
It should be noted that the current 3% interest rate discount products launched by various banks are actually significantly lower than the current 1-year LPR of 3.45%. Yang En also recalled that around 2020, consumer loan interest rates were basically still between 5% and 6%, and soon gradually dropped. In 2023, they had fallen below 4%, and now they are hovering around 3%. Will this affect banks?
"Currently, due to factors such as lower deposit interest rates, bank capital costs have also declined, and there is a certain basis for lowering personal consumption loan interest rates." Dong Ximiao, chief researcher of China Merchants Union, believes that consumer loans do not account for a high proportion of total bank loans and have an impact on interest spreads. The impact is relatively small; and the reduction in consumer loan interest rates and the acceleration of the issuance usually have a positive impact on bank revenue and are conducive to increasing total revenue.
"The reduction in consumer loan interest rates has almost no impact on bank asset quality. An interest rate reduction only reduces prices and does not mean lowering risk control standards. Banks' ultra-low interest rate consumer loans are usually targeted at high-quality customer groups, so the risks are generally controllable. "He said.
Of course, there have always been illegal and illegal operations in the market such as using consumer loans to advance housing loans and engaging in high-risk investments. In this regard, Dong Ximiao believes that fictitious loan purposes and misappropriation of credit funds should be included in the credit reporting system to increase the borrower's violation costs. Financial institutions can establish gray lists, black lists and other systems in a timely manner.
Consumers should not blindly apply when they see a lower interest rate. "First of all, we must beware of loan-related telecommunications fraud. At present, only some small-amount loans in our bank can be processed online through mobile phones, and others require you to come to the business office in person. Secondly, you must pay attention to whether the repayment method is equal principal and interest or interest first. Details such as the backend,” Yang En mentioned.
Relevant departments and industry insiders also frequently remind financial consumers to apply for consumer loans in a reasonable and appropriate manner, control their personal debt burden within a reasonable level, and not blindly follow the trend in the hope of low interest rates, resulting in excessive debt. (over)