Because Huabei itself is a credit product, the interest rates on credit products are generally very high.
If you want to apply for a regular bank loan, the product with the lowest interest rate on a bank loan is a mortgage loan. House mortgage loans have the lowest interest rate among all mortgage loans. Some banks can even annualize the interest rate. 3 levels. But if you want to apply for a credit loan, the interest level of the credit loan is generally very high. Although Huabei is not a formal bank loan, it is also a credit loan, so the interest rate will be very high.
1. Huabei is a non-bank credit loan.
To put it simply, among all types of loans, credit loans have the highest interest rates, which means that credit loans themselves have a certain snowball effect. If the user does not have a particularly urgent need for funds, I personally recommend not to apply for a credit loan, let alone frequently use services such as Huabei and Jiebei. The credit limit of a credit loan is generally relatively low, and the credit threshold is also relatively low, but it has a higher interest level.
2. Huabei’s annual interest rate is very high.
If you use Huabei’s services normally and can repay in full and on time, Huabei can provide users with a 30-day interest-free period. But if you cannot repay the loan in full on time, Huabei's installment fees will accrue a certain amount of interest. If you need to pay in three-month installments, the three-month installment interest is 2.5. If you want to choose a longer term, the 12-month installment can reach an annual interest rate of 8.3.
3. Huabei’s minimum repayment has the highest annualized interest, which is related to the attributes of Huabei itself.
For those users who only repay the minimum monthly repayment, the user needs to pay 0.05 interest per day. If this interest is multiplied by 365 days, the interest the user needs to pay is 18.25. To some extent, this is a process of boiling frogs in warm water. The interest rates on credit loans are generally very high, and I don’t mind users using such products frequently.