When purchasing wealth management products, the product manual or signed agreement contains the terms of product pledge.

Pledged loan of wealth management products refers to a credit business in which the borrower pledges the beneficial right of local and foreign currency wealth management products sold in the bank in his own name, obtains RMB loans from the bank, and repays the principal and interest of the loans when due.

Take the purchase of a wealth management product with an annualized income of 4.75% as an example. The product cycle is one year, and investors will pledge the wealth management products after purchasing. The loan interest rate is 4.35% of the benchmark interest rate within one year, with a spread of 0.4% in the middle. In other words, while raising bank funds, you can still make a net profit of 4000 yuan.

Pledged loan of wealth management products

Pledged loan of wealth management products means that bank customers pledge the beneficial right of future income of wealth management products (including entrusted wealth management products) that meet the requirements of lending banks and apply for relevant loans from banks.

The loan term of the pledged loan for wealth management products shall not exceed the expiration date of the personal entrusted wealth management business agreement or contract; The loan interest rate shall be implemented in accordance with the loan interest rate of commercial banks announced by the People's Bank of China in the same period, and may fluctuate within the scope stipulated by the People's Bank of China.

The wealth management products sold by banks to customers are all raised by commercial banks from investors in order to obtain the nominal ownership of the raised funds and manage and use the raised funds. Funds are independent of commercial banks' own capital system and belong to off-balance-sheet assets, and the income ultimately belongs to the beneficiaries of wealth management products. In essence, it is "entrusted by others to manage money on behalf of others", which fully embodies the essential characteristics of trust legal relations such as "property independence" and "separation of ownership and income rights", thus determining that the legal relations formed by various financial products are trust legal relations.