★7.1 Personal loans overview

• 7.1.1The concept of personal loans

-Refers to the banks and other financial institutions to meet specific personal consumption loans.

 

•7.1.2The variety of personal loans

-Individual housing loans

-Personal consumer loans

Education loans(The national student loan)

Travel loan

Consumer durables loans(Car loans)

 

-Personal business loans

-Credit

 

•7.1.3Significance of individual credit to commercial banks

-Personal credit is an effective way to realize the asset diversification, reduce the ratio of bad assets, improve the ability of competition   

• Improve the structure of bank assets, reduce business risk   

• Commercial bank a new profit growth point    

• An important way to improve the competitiveness of commercial banks

 

•7.1.4Characteristics of personal credit

-High risk 

• Consumer credit repayment source of instability, fluctuation

• The risk of information asymmetry is more serious

• With the loan structure higher interest rate risk and default risk

-High yield 

• High risk of the consumer credit which determines its high profit

 

-Periodic

•Cyclical consumer credit in the economic cycle sensitivity

-Interest rates are not sensitive

• Whether consumers borrow and lend how much depends on the level of education, income, preferences, etc.

 

•7.1.5Personal loans risk control

- Banks can strengthen management from the aspects of quality, purpose of loan, loan amount, repayment sources, the collateral and the borrower 

• The establishment of personal credit system

• Well before the loan approval (personal credit evaluation, credit tracking)

• To avoid excessive concentration of each type of consumer credit of the borrower

• Reasonable collocation that different loan period 

• Through two levels of market sale of consumer credit

 

7.2  Personal credit assessment

•★7.2.1Personal credit and economic significance

- Credit evaluation is also known as credit The basic function, credit is understanding, investigation, verification of other people's credit, the credit activities in the lender to more fully understand the true borrower information and timely repayment ability. 

-Personal credit Is a solid foundation to ensure that the risks and benefits of consumer credit business matching, the healthy development of the. 

 

•7.2.2Personal financial analysis

-1The main content of personal, financial analysis

 

•2Personal financial analysis target

-Determine the loan customer asset value and reliability

-Identify one or several possible liquidity assets as collateral

-Clear the financial status and strategy of customer, to estimate the flow part in debt and repayment method, determine the possible source of repayment

-Determine customer's overall debt and liquidity, and determine the guarantor to repay their debts or the ability to meet the requirements of the loan service

 

-3Quantitative index to measure the personal finance

•Ratio analysis is an effective tool to analyze the borrower's cash flow situation

 

•7.2.3The personal credit evaluation model

-1,ZScore model

-The calculated by the modelZValue can be more clearly reflect the borrower's credit status in a certain period of time, ZThe greater the value, the better the credit;ZThe smaller the value, credit is worse.

 

-2, "5C"Judging method

 

-3, credit scoring method

•Du Lande9Factor rating method

•FICOCredit scores

• 

7.3  Personal loan pricing

7.3.1Influence factors of personal loan pricing

7.3.2Personal loan pricing model

1Cost plus pricing model

The loan price=The cost of capital+The loan expenses+Risk compensation+Target profit

2The benchmark interest rate plus pricing model

3Customer profitability analysis model

 

7.3.3Calculation method of practical interest personal loans

1. calculation method of short-term consumer credit interest

Real interest rates can use a variety of pricing model to determine the consumer credit. Popular interest rate calculation method mainly includes: Annual percentage method, a single interest rate method, ★ discount rate method, additional loan rate method, ★78SIn terms of law, floating rate method, the compensation balance method

 

2Long term consumption credit. Calculation method of practical interest

(1Fixed rate mortgage loans)(Fixed Rate Mortgages, FRMs) Price

(2Adjustable rate mortgage)(Adjustable Rate Mortgages, ARMs) Price

(3) loan pricing consumer mortgage Shoufu case

7.4 The development of personal loans in China

•7.4.1The rapid expansion of the scale of personal loans

-By2004Years6Months, the personal consumption credit project, the housing mortgage loans accounted for83%, credit card accounts6.4%, other10.6%.

-Personal consumption credit balance1997Years172Billion yuan, up to2005Years of22482Billion yuan, in short8Years increased nearly130Times, with an average annual growth rate of more than ten times. While the average growth rate over the same period of the loan amount is only16%.

 

•7.4.2Diversified structure of housing loans

•2008Years of industrial and Commercial Bank of China personal loans

 

•7.4.3Personal loans with high concentration

•2008Regional structure of industrial and Commercial Bank of Chinese year loan

 

7.4.4Personal credit is seriously lagging behind in rural areas

The main factor that restricts rural credit

 1Expected income instability)

 2) credit environment is poor

 3) personal credit mechanism defects, operation process and processing cumbersome, multi link charges, charges high

 

•7.4.5Analysis of the existing problems in China's commercial banks personal credit

-1The consumer point of view

• The income is not high, consumer credit concept

-2The perspective of commercial banks

• Consumer credit threshold high, cumbersome procedures led to high transaction costs, lack of consumer credit risk prevention mechanism of effective internal bank, consumer credit borrowers have income volatility and moral risk, the commercial bank can not control

-3The macro environment 

• Credit policy and environment does not match 

 

•7.4.6Countermeasures for the development of personal consumer credit business

-1To increase the income of residents , improve the social security system, change the traditional concept of consumption, advocate the credit consumption 

-2 To strengthen the bank loans for personal consumption business innovation, improve the service level of bank management, establish and perfect the internal bank Consumer credit risk prevention mechanism

-3 Establish the personal credit system And personal credit evaluation system, establish and perfect the legal system of consumer credit environment