Once it was vigorously promoted, even with interest rate concessions, the home improvement loan was once a "hardcover project" for Shanghai banks to attract customers. However, just three and a half years ago, the "Hardcover Project" has gone through glory and has been declining. People do not buy it. What about the bank? It may be embarrassing, but it is a last resort.
High-profile appearances have now come to an end
Just a year ago, individual housing renovation loans were also projects that Shanghai's major banks were keen to promote. Conditions have been continuously relaxed, mainly reflected in the quota and the time limit. In addition, if the mortgage and personal decoration loans are placed on the same bank, customers can even There can also be a discount on interest rates.
When ICBC Shanghai Branch launched a personal decoration portfolio loan, the loan amount was limited to 200,000 yuan and the repayment period was 5 years. In January 2004, the loan quota was relaxed to 70% of the value of the mortgaged housing assessment, and the repayment period was Relax to 10 years. In other words, if the assessed value of a house is 1 million yuan, the applicant for the renovation loan can borrow a maximum of 700,000 yuan.
Today, such a good thing is gone. Home renovation loans have not only lost these tempting conditions, but have even low-keyed to the point of suspension and rebranding. Today, ABC Shanghai Branch confirmed that the ABC loan for home renovation has been discontinued at the end of May. In the current adjustment, whether the loan is cancelled or integrated into other personal loan projects is still awaiting discussion. ICBC Shanghai Branch’s home improvement loan has also been cancelled and merged with other loans to “darkenâ€.
Interest rates are not as high as commercial mortgages
“In Shanghai, there are not a lot of people who are refurbishing bank loans,†said a person from a bank’s personal finance department. He introduced that of the 100 people who handled mortgages at the bank, 99 people would not even think of applying for a home improvement loan. The amount of personal decoration loans of major banks has been small for several years. Last year, after the bank launched the concession, it had a good response for some time, but it was only brief. Now with the interest rate hike, interest rates on housing renovation loans have to be increased and it is less attractive.
How high is the renovation loan rate? For example, the renovation loan interest rate for 6 months to 1 year is 5.58%, 5.76% for 1 year to 3 years, and 5.85% for 3 years to 5 years, compared to the personal housing loan interest rate over 5 years ( 95% off, only 5.51%, smart money-savvy home buyers will naturally be considered such an account, that is, the decoration loan transferred to the mortgage, originally mortgage can be paid 50%, into a down payment of 30%, save Money to decorate, so that the renovation of the loan will be transferred into a mortgage, the interest rate can be a lot lower, and the repayment period is also long.
Transferring Targets to Credit Card Consumer Credit Development
Since the public does not buy it, the bank cannot enforce it. After the renovation loan was stopped, the bank could naturally find other ways to make money. Insiders pointed out that many banks have realized that some types of personal loan business have become "tasteless." Since it is "chicken ribs," there is no need to think of ways to promote, and low-key exit is not bad. "Actually, many consumer bank loan businesses with relatively little business volume did not say it or not, but in fact they did not do so."
Banks, which have a small amount of personal consumer credit, will develop credit card consumer credit. Now many banks’ credit cards have introduced shopping repayments in installments, and there are also interest-free concessions for a certain period of time. Credit cards will be a key point for banks' future consumer credit development.
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