The amount of the universal fund of Shanghai Pudong Development Bank is about 2-5 times that of the credit card. The interest rate of the "universal fund" business loan is lower than that of the credit card overdraft, and the annual interest rate is 8.84% regardless of the time value of funds. Loan for two years, with annual interest rate of 7.9%; The loan lasts for 3 years and the annual interest rate is 7.971%. However, considering the actual interest rate of installment repayment, the interest rate of universal money is still relatively high, which is basically twice as nominal, that is, the annual interest rate is about 16%. So it is quite high.
what is a credit card universal fund?
Universal cash is a cash installment business launched by Shanghai Pudong Development Bank's credit card. Relying on the credit card, it increases the cardholder's cash withdrawal limit without occupying the original credit card limit, which is equivalent to a small loan.
Basically, every bank's credit card has this kind of cash loan business. Among them, CITIC Bank has a relatively high quota and its rates are often discounted. The rates of other banks are basically around 7%.
Features of the universal credit card fund:
1. Compared with cash withdrawal by credit card, the interest rate is relatively low, which is equivalent to the rate of personal consumption loans.
2. There are almost no restrictions on the use of funds, and cardholders can take them whenever they need them.
loan interest rate refers to the interest rate charged to borrowers by banks and other financial institutions when they issue loans.
it is mainly divided into three categories: the loan interest rate of the central bank to commercial banks; The loan interest rate of commercial banks to customers; Interbank lending rate
The determinants of bank loan interest are:
1. Bank cost. Cost-benefit comparison is necessary for any economic activity. There are two types of bank costs: borrowing costs-prepaid interest on borrowed funds; Additional cost-the cost of normal business.
2. Average profit rate. Interest is the subdivision of profit, which must be less than the profit rate, and the average profit rate is the highest limit of interest.
3. Supply and demand of borrowing money and funds. If supply exceeds demand, the loan interest rate will inevitably fall, and vice versa.
in addition, the loan interest rate must also take into account the factors of price change, securities income and politics. However, some scholars believe that the highest limit of interest rate should be the marginal rate of return of funds. The factors that restrict the interest rate are regarded as the comparison between the ratio of the profit increase after the enterprise borrows the bank loan and the loan interest rate. As long as the former is not less than the latter, enterprises may borrow money from banks.