The initial intention of the bank to plan this credit card lending product is to effectively deal with those who are in short-term cash flow emergency. By charging the corresponding handling fee, the bank can also obtain certain benefits, that is, "win-win".
"If you want to borrow 50,000 yuan for renovation, it is very difficult to borrow money from friends, but this kind of small unsecured loan for applying for a credit card is very suitable."
For example, the bank lent Mr. Liu 45,000 yuan in advance and repaid it in 24 installments (two years in total), with a monthly repayment of 45,000/24 =1875 yuan. There is no interest, and you only need to pay the handling fee of 3 1.5 yuan every month. Roughly speaking, Mr. Liu's necessary interest (that is, handling fee) is 16.8%.
Although the cost is not low, "this small unsecured loan product is quite effective for departmental consumers." The performance of the industry, especially the small business owners who need temporary liquidity, is that at this stage, the bank position is in a hurry and it is difficult to get loans; Credit card loans can meet the non-designated consumption needs of credit card holders and the needs of small capital activities.
It is understood that there are six banks that provide microfinance services similar to credit cards: Xingye, Guangfa, CITIC, Zhongyuan, Pudong Development Bank and Ping An Bank. The repayment rates are different, but they are all interest-free and inevitable. The maximum loan amount of credit card pre-borrowing loan business of each bank is different, and the highest is Xingye and Ping An, which can reach 50,000 yuan; Some banks set loan lines according to the proportion of credit lines, and the maximum credit line of Shanghai Pudong Development Bank is 100%.