1. The consumer loan products promoted by banks, which have extremely low interest rates, are mostly targeted at high-quality customers. Therefore, clients need to pay attention to the actual interest rate level when applying before deciding whether to borrow. 2. The reduction in personal consumer loan interest rates helps lower costs for consumer credit holders, promotes demand for consumer credit, and thereby stimulates consumption.
According to the Financial Association on December 10 (Reporter Gao Ping), as the year-end approaches, many banks are introducing a new round of promotions for consumer loans in December, with some banks lowering the minimum consumer loan interest rate again. Among them, some branches of banks have a minimum consumer loan interest rate as low as 2.78%. In addition, reporters from the Financial Association found that a major bank's minimum consumer loan interest rate has decreased by 50 basis points this year.
Industry insiders analyzed to reporters from the Financial Association that the decline in consumer loan interest rates is influenced by market competition, combined with banks' active promotion of consumer loan business development. The reduction in personal consumer loan interest rates helps lower costs for consumer credit holders, promotes demand for consumer credit, and consequently stimulates consumption. However, it is also necessary to note that consumer loan funds must not flow into the stock market or real estate market.
New consumer loan discounts in December, with some banks' minimum interest rates dropping further compared to last month.
Banks are ramping up consumer loans again, with many banks introducing new promotional activities for consumer loans in December, and some banks' minimum promotional interest rates being refreshed again. The CM Bank mobile app shows that its Suzhou branch has launched a promotional activity for consumer loan interest rates, with a flash loan annual interest rate starting at 2.78%. Eligible new and old customers will automatically receive different interest rate discount coupons based on customer conditions, with the coupon usage period from January 2, 2025, to January 26, 2025.
In comparison, the bank's minimum consumer loan interest rate has decreased again compared to last month. Last month, the CM Bank mobile app indicated that its Shenzhen and Nanjing branches launched flash loan activities with annual interest rates (simple interest) as low as 2.88%, during the activity period from November 1 to November 30.
"Year-end great discounts!" A customer manager from a joint-stock bank in Peking also told reporters from the Financial Association that the bank's consumer loan for "new customers" has an annual simple interest starting at 2.86% with a maximum limit of 0.5 million yuan. According to the promotional poster content provided by this customer manager, the interest rate discount activity runs from December 1 to December 28, and first-time signers can receive interest rate discount coupons for cash withdrawal, starting at an annual simple interest rate of 2.86% after using the coupon.
In addition, a major bank's minimum interest rate has reached 3%. The Bank of China's micro bank in Tianjin recently released information regarding "Bank of China personal credit consumer loans, with annual interest rates as low as 3.0%". According to the disclosed information, their Flexible Credit Loan has an annual interest rate as low as 3% starting from now until December 31.
Overall, some banks have significantly decreased the minimum interest rates for consumer loans this year. For instance, information released by the bank of china micro bank tianjin branch indicated that at the end of July, "the bank of china consumer loan annual interest rate is as low as 3.25% starting from," and according to the disclosed information, the bank's smart credit annual interest rate is at least 3.25%. Looking back, historical information shows that in late January, the related information disclosed by this branch indicated that the smart credit annual interest rate was at least 3.5%.
The average minimum interest rate for consumer loans from banks has decreased significantly, but attention must be paid to the conditions for preferential rates.
In fact, the average minimum interest rate for consumer loans from banks has shown a significant overall decline. Data monitored by the融360 digital technology research institute indicates that by August 2024, the average minimum executable interest rate for online consumer loans from national banks is 3.14%, a decline of 1 BP month-on-month, and a decrease of 37 BP year-on-year.
It should be noted that preferential rates generally have certain threshold conditions. A customer manager from a joint-stock bank in peking reminded that the consumer loan products with extremely low interest rates promoted by banks are mostly aimed at high-quality customer groups, so clients need to pay attention to their actual interest rate level when applying before deciding whether to borrow.
Regarding the downward adjustment of consumer loan pricing and the fact that many banks are launching interest rate incentive activities,融360 digital technology research institute analyst Ai Yawen previously stated in an interview with a financial news agency reporter that on one hand, it responds to policy calls to continue to "promote stable loan interest rates with reductions," and the decrease in consumer loan rates is beneficial for boosting consumption and stimulating the economy; on the other hand, market competition is fierce, and banks are also attempting to provide benefits through various consumer loan scenarios to high-quality customer groups that are more sensitive to prices, thereby achieving economies of scale.
In fact, in addition to lowering interest rates, banks also support consumption across various fields through methods like giving red envelopes or gifts when processing consumer loans, as well as credit card discounts. For example, at a recent financial sharing conference focused on new energy vehicles, china everbright bank credit card center's installment business department general manager Li Xin introduced that the bank's credit card auto installment business is guided by the needs of new energy vehicle owners, featuring simple processes, intelligent approvals, and fast disbursements; focused on customers, it creates a "person-vehicle-life" three-ring ecosystem, relying on the dual characteristics of credit cards' "payment + crediting" attributes to extend financial services into all aspects of vehicle owners' lives.
Although the overall interest rates for consumer loans are on a downward trend, several bank customer managers also told a financial news agency reporter that they recommend rational consumption to avoid excessive borrowing; at the same time, choose legitimate institutions and regular banks to avoid economic losses; additionally, repay on time to prevent overdue payments and penalties that could impact personal credit. Some bank customer managers also stressed that the purpose of the loan should be for reasonable and legal personal consumption expenditures and must not be used for business operations, purchasing stocks, funds, or financial investments, nor for repaying other loans or credit cards.
