When it comes to consumer loans, everyone’s subconscious reactions may be, “The interest is a bit expensive” and “I won’t borrow unless it is absolutely necessary.”

But I don’t know if you have paid attention to the recent consumer loans. Even budget-conscious planners think this is too cheap!

How cheap is it? The planner will talk about it in detail:

Things about consumer loans

Most of the consumer loans we commonly use from banks have annualized interest rates around 5%, and the amount 300,000. For example, the annual interest rate of Industrial and Commercial Bank of China's "E-Lending" is 4.35%; the annual interest rate of China Construction Bank's "Quick Loan" is between 4.35% and 5.6%.

According to current statistics, the national average interest rate for first-home loans in 2020 is 5.52%, and the average interest rate for second-home loans is 5.83%.

Home loans have always been considered the most cost-effective loan, but now they have been overshadowed by consumer loans. Why is this?

The most direct reason is to stimulate consumption.

Since the epidemic, consumption has been severely damaged for the following reasons:

Firstly: many industries and stores cannot open, leaving consumers with "no way to spend money";

Secondly: Due to the impact of the epidemic, many people's incomes have also been forced to decrease, and they have fallen into the dilemma of "no money to spend".

For banks, after new consumer demand weakens, bank retail businesses are also facing pressure to shrink. In addition, this year's monetary policy is generally loose and there is plenty of liquidity in the market. Due to the superposition of multiple factors, various banks have focused their efforts on consumer loans and started a "price war" for consumer loan products. ". Not only are the interest rates low, but the application for consumer loans is not complicated and can be completed on your mobile phone, without the need to go to a bank counter.

Planning Jun has tried China Merchants Bank’s “Flash Loan” and China Construction Bank’s “Quick Loan”. You can apply directly by filling in the information according to the instructions on the page. After submission, the bank system will automatically approve it, which takes about ten minutes. Once approved, you can borrow money immediately and get it to your account in real time.

Thoughts on consumer loans

Regarding consumer loans, we mainly consider three points:

1. Interest and limit

Different banks are different, and personal qualifications are different.

At present, the interest rates of loan products of state-owned banks are lower than those of joint-stock banks. If an individual has more turnover with that bank, the interest rate he can get will be relatively lower and the credit limit will be higher. At present, the annual interest rate of most banks is around 5%, and the maximum amount is 300,000. There are also some banks that can provide 500,000 or more. Such high-value products are mostly targeted at specific groups of people, such as civil servants, medical staff, employees of central enterprises, etc.

2. Repayment method

At present, most consumer loan products are converted into daily interest based on the actual occupation time of the funds.

For example, Xiao Ming applied for a consumer loan of 300,000 yuan, with an annual interest rate of 5%. He withdrew 200,000 yuan for renovation at the beginning of this year and paid it off half a year later. Then the interest he needs to pay That is 200,000*5% (180/360)=5,000 yuan. In addition, there are also banks that settle accounts on a monthly basis.

3. Borrowing period

Generally speaking, the period of consumer loans is not long, usually one year, and some banks can give three years, but it may You will be required to pay off the loan at the end of each postponed year before you can continue to receive the credit limit. Please refer to the loan product description for details.

Some people may ask, since consumer loans are so cost-effective and convenient now, can we use them for other purposes? For example, buying a house or investing?

I'm sorry, the supervision clearly said, no!

Purposes of consumer loans

Regarding the uses of consumer loans, you can see relevant prompts on the product page, such as "Loans can be used for the customer's own and family consumption, such as decoration and car purchases. , marriage, travel, study abroad, large-amount durable goods consumption, etc." It will also indicate that "it cannot be used for stocks, futures, financial derivatives, equity investment, house purchase, and other consumption prohibited by relevant national laws, regulations and rules. and investment behavior”.

The practice of buying a house with a consumer loan has been very tight recently in various places. It is recommended that everyone stop thinking about it. Some people say that I can use consumer loans to consume, and then use the spare money saved to invest. Planning Jun suggests that you should still be cautious, because even if the interest rate on consumer loans is low, it is still higher than the risk-free interest rate.

If you have large consumption needs and are temporarily short of money, but your repayment ability is okay, it is actually very cost-effective to use a consumer loan now. Let’s compare the most commonly used Huabei installment plans, Jiebei loans, and Weili loans:

If Huabei installment plans are made in 12 installments, the annual interest rate is approximately 14.4%

The borrowing date is The interest rate is about 3.5/10,000, equivalent to an annual interest rate of 12.6%

The daily interest rate of Weilidai is approximately 4.5-5/10,000 points, equivalent to an annual interest rate of 16.2%-18%

By comparison Look, these very convenient loan tools that we usually use are really too expensive, and the limits are generally not high. It can be said that the bank has won this round.

Generally speaking, for those who need to borrow money in the near future, consumer loans from banks are the first choice, as they are cheap and large. The best purpose of borrowing is pure consumption, and don’t use too many evil thoughts.

At the same time, you must also measure your repayment ability. I once saw someone take out seven or eight consumer loans and use them blindly. In the end, they could not pay back the loan and had to sell their house to repay the money. It was really miserable. ....