Consumer Credit "Price War" Cools Down, Banks Start to Offer Higher Loan Amounts? 1200 Million Can Borrow for 7 Years, Interest Rate Regresses Above 3%

Following the implementation of the China Banking Regulatory Commission's notification on developing consumer finance and boosting consumption, various banks have begun to offer higher loan amounts for their consumer credit products. Some products can borrow up to RMB 2500 million, with a longest repayment period of 7 years.

At the same time, banks have also set stricter eligibility criteria for these products, taking into account factors such as the applicant's workplace, asset and debt situation, income source, and repayment capacity. Many banks pointed out that these products are designed for high-quality customers who have a good willingness to repay their debts.

Moreover, Sina Financial Research Institute found that many consumer credit products had their interest rates reset above 3% after the "price war" cooled down. State-owned banks' consumer credit products generally have an interest rate of around 3%, while some share-holding banks' lowest interest rate can be as high as 4%.

Consumer Credit with Loan Amounts Over RMB 1 Million

In recent years, consumer credit products have become increasingly popular. Last year, banks' consumer credit interest rates continued to decline, and some even dropped to as low as "1" digit. The "price war" has stimulated the consumer credit market, with bank consumer credit balances growing rapidly.

As of March 2025, the consumer credit "price war" cooled down, and banks started to offer higher loan amounts for their consumer credit products. Some products can borrow up to RMB 1200 million, with a longest repayment period of 7 years.