The so-called pledge loan of bank wealth management products refers to a kind of 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 at maturity. Not many people know about this financing method. Many citizens only know that wealth management products cannot be redeemed in advance. Even if some products can be redeemed in advance, they need to pay a certain penalty, or they can't enjoy the bank's promise of capital preservation, resulting in actual losses. As we all know, using the pledge loan function of wealth management products can make up for the loss of poor liquidity of such products, and for the general public, the purpose of "emergency" can be achieved by withdrawing cash. Most banks' wealth management products can apply for pledged loans. If you need money urgently or have a better investment direction, you may wish to consider using wealth management products to pledge loans as long as you calculate the cost of capital. Except for a few wealth management products issued by banks, most of them can be used for pledged loans. However, the proportion of loans pledged by banks with wealth management products is different, probably between 70% and 90%. For example, the wealth management products issued by China Merchants Bank with low risk coefficient and risk levels of R 1, R2 and R3 basically have the function of pledge loans. The highest pledge rate of RMB wealth management products of China Merchants Bank is 90%, that is, if you buy RMB 654.38+ RMB 10,000 wealth management products, you can get RMB 90,000 pledged loans. Foreign currency wealth management products can also pledge loans, but the pledge rate is relatively low, with the highest pledge rate of 72%. Judging from the products issued by various banks, it is easier for products with floating expected annualized expected return and expected annualized expected return to obtain higher loan quotas. Structured wealth management products that were not optimistic about the market before are more likely to pledge loans. For example, the eighth phase product of "A+ Plan" issued by China Everbright Bank on 20 1 1 is a wealth management product with guaranteed capital and floating expected annualized expected income, and enjoys the function of "pledge loan", with the highest pledge rate of 85%. According to industry insiders, because the design principle of structured wealth management products is absolute guarantee of principal, the risk of pledged loans is very small for banks. However, some products with non-guaranteed floating expected annualized expected returns have the risk of not reporting the principal in theory, and cannot be used for pledge loans or the pledge rate is very low. Financial planners reminded that if citizens intend to apply for pledged loans, they should clearly understand the applicability, pledge ratio, expected annualized interest rate, term and repayment method of pledged loans for bank wealth management products. Especially if the loan funds are used for reinvestment, it is necessary to calculate the difference between the loan cost and the expected annualized rate of return of the product. If the loan period of wealth management products is too long, citizens may lose more than they gain.