basic concept
Personal housing loan refers to the loan issued by the lender to the borrower for the purchase of ordinary housing for personal use. Personal housing loan business is one of the main asset businesses of commercial banks. It refers to the loan issued by commercial banks to borrowers for the first time to purchase housing (that is, housing sold to individuals after development and construction by real estate developers or other qualified developers).
Pricing model
On August 25th, 20 19, the People's Bank of China announced that it would adjust the interest rate policy for new commercial personal housing loans. From August 8, 20 19, the interest rate of newly issued commercial personal housing loans will be based on the loan market quotation rate (LPR) of the last month.
On August 25th, 2020, five state-owned banks, namely Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank, China Bank and Postal Savings Bank, announced at the same time that individual housing loans within the range of batch conversion will be uniformly adjusted to the pricing method of LPR (loan market quotation rate) according to relevant rules. At the same time, it is clear in the announcement that after the batch conversion is completed, if there is any objection to the conversion result, it can be transferred back through relevant channels or negotiated with the loan handling bank before February 65438+February 3 1 2020.
The way to repay the loan principal and interest shall be agreed by the borrower and the borrower, and shall be specified in the loan contract. If the loan term is within 1 year (including 1 year), the principal and interest will be repaid in one lump sum at maturity, and the interest will be paid with the principal. If the loan term exceeds 1 year, the principal and interest of the loan will be repaid on a monthly basis in the form of equal principal repayment and equal principal and interest repayment.