The impact of Shandong’s liberalization of epidemic policies on bank loans

Banks have generally implemented support policies for deferred repayment of personal housing loans, demonstrating the warmth that financial services should have.

Judging from the situation of various banks, the deferred repayment support policies are roughly the same, but there are differences in time periods and specific operations. Among them, the grace period ranges from 11 to 30 days, and the grace period of ICBC is 30 days. After the grace period, customers can choose to pay in equal installments or pay in one lump sum according to the situation. The extended loan period is between 1 and 6 months. Interest will be calculated normally during the extension period and no penalty interest will be charged.

According to the staff of Everbright Bank Weifang Branch, the bank’s loan extension period shall not exceed 3 months, during which no repayment is required but interest will be calculated normally. The loan period shall be extended accordingly according to the application extension period; during the extension period, The interest will be paid in one lump sum on the first repayment date after the extension, and the principal will be amortized in subsequent repayment plans.

The process for applying for an extension is not complicated. Many banks stated that eligible residents can call the lending bank's national customer service hotline or directly contact the account manager to register. Under normal circumstances, the prefecture-level secondary branches have the authority to approve the application, and it can be approved in 1-2 working days.

What should a borrower do if his mortgage is overdue due to the impact of the epidemic?

In March, the "Ten Measures for Financial Services to Support Epidemic Prevention and Control and Stable Economic and Social Development" issued by our province mentioned that financial institutions should reasonably adjust the submission of overdue credit records. Due to the impact of the epidemic, they were unable to timely For repayments, if determined by the financial institution, the relevant overdue loans may not be reported as overdue records, and those that have been reported may be adjusted.

In this regard, the relevant person in charge of the Shandong Provincial Association stated that for farmers, individual industrial and commercial households, and small and micro enterprises that are temporarily unable to repay principal and interest on time due to the epidemic, an overdue record protection policy will be implemented, and farmers will be responsible for The commercial bank will make adjustments according to the credit reporting error correction procedures.

The relevant person in charge of the Shandong Branch of the Bank of China said that the bank issued the "Notice on Actively Doing Customer Credit Objections During the Epidemic Period" this year to deal with those who are unable to repay in time or fail to report to customers in a timely manner due to the impact of the epidemic. If the bank applies to adjust the repayment plan and the credit report is overdue, the handling bank shall promptly submit an application for objection processing to the head office after the customer completes the repayment of the loan arrears or the handling bank actively completes the zero adjustment of the overdue loan.

The reduction in mortgage interest rates will also reduce the burden on home buyers.

After some banks in Tai'an, Linyi, and Yantai lowered their mortgage interest rates in March, recently, banking institutions in Rizhao, Liaocheng, Weifang, Jining, Weihai, and Dezhou also generally lowered their personal housing loan interest rates. The magnitude of the reduction ranges from 20 to 45 BP (basis points).

The reporter called a business outlet of the Rizhao Branch of the Industrial and Commercial Bank of China, and the manager of the personal loan department said: "The housing loan interest rate has dropped a lot compared with the previous period, and the interest rate for first-time homes dropped from 5.3 in February to 5.1. The loan interest rate is as low as 5.2, and all ICBC branches in the city are currently applying for this rate. Our bank has sufficient mortgage loan quota, and as long as the procedures are complete, the loan can be issued as soon as the same day."

The relevant person in charge of the Liaocheng Branch of the Agricultural Bank of China said, "First. The minimum annual interest rate for a suite is 5.2, and the minimum annual interest rate for a second suite is 5.2, which is 20 BP lower than at the end of 2021.”

Some banks in Jining have made the largest reduction this time. In the early days, the average interest rate for first-time home purchases by Jining banking institutions was 5.4, and the average interest rate for second-time home purchases was 5.6. After this reduction, the average interest rate for first-time home purchases is expected to be 5.0, and the interest rate for second home purchases is reduced to 5.2, a decrease of 40 BP and 45 BP respectively.

Many banking institutions in Weihai and Texas have reported that the current policy lower limit for personal housing loan interest rates is that loans for first homes must not be less than LPR, and loans for second homes must not be less than LPR 60BP. Commercial banks’ reduction in mortgage interest rates is in line with this One request. The mortgage loan quotas of various banks are relatively sufficient, the lending speed has increased, and there is no queue for lending.

It is understood that since March, due to weakening market demand, banks in more than 100 cities across the country have independently lowered mortgage interest rates, with an average range of 20 to 60 BP.