Information > General articles > Raiders Channel > personal loan >  text

How high is the cost of private investment borrowing?

Time: 2016-07-25         Source: Interface         Author: Ruo o

How high is the cost of private investment borrowing? Data on economic activity in June showed that private investment has further slowed down. In June, the year-on-year growth rate of investment in fixed assets of the public sector (including state-owned enterprises) further accelerated to 21.2%, while private investment in fixed assets experienced the first negative growth since 2010. Given the structural weaknesses of private investment over a long period of time, it does not fully explain the declining trend of its rapid growth since the beginning of this year. It is difficult to quantify the increase in investment risk premiums. The CICC report focuses on the analysis of the year-to-date private investment financing costs. Variety.

Even conservative assumptions, the annualization of private investment in the second quarter of this yearLending ratesIt may also be close to 10%. The year-to-date monetary policy further loosening is limited – the weighted average lending rate in the first quarter of this year rose by 3 basis points to 5.3% (according to the central bank's monetary policy implementation report). On the other hand, fiscal policy has become more positive, and the proportion of home loans has risen significantly since the fourth quarter of last year. Due to the public sector loan interest rate (3%-4%) andMortgage rates(4.5% or so) are significantly lower than the overall weighted average loan interest rate. A rough calculation can lead to a conclusion that the loan interest rate for private enterprises has risen significantly this year.

Specifically, CICC estimates that the lending rate of private enterprises may have reached 9.9% in the second quarter of this year. It is assumed that the weighted average lending rate in the second quarter is equal to that in the first quarter, and the average lending rate in the public sector is about 90% of the benchmark lending rate. . Considering various new forms of public sector loans, such as policy bank loans and some PPP infrastructure investment loans, the interest rate may be much lower than the loan benchmark interest rate. This assumption is already conservative; although the public sector has a source of funds other than loans, the private sector Investment has always been more fundraising, and the ratio of bank loans may not be the proportion of investment; in addition, due to the slowdown in the second quarter monetary supply and bank balance sheet expansion, and the increase in the average interbank rate, the second quarter weighted average Loan interest rates may actually be up.

Comparison of average loan interest rates for public and private investment

As the "punitive premium" on private investment lending rates continues to rise, investment in the public sector (including state-owned enterprises) has become the only increment in total fixed asset investment in the society, while the rapid decline in the proportion of private investment is worrying. The report estimates that compared with the loan interest rates of the public sector and state-owned enterprises, the “punitive premium” for private investment interest rates expanded to 6 percentage points in the second quarter, which is 3 percentage points higher than last year. As a result, the proportion of private investment in total fixed asset investment has dropped by 4 percentage points in just six months. What is even more worrying is that investment in the public sector (including state-owned enterprises) has become the only growth point for fixed asset investment in June.

In the face of a sharp slowdown in private investment, the government urgently needs to take effective measures to reduce the financing and other costs of private investment in order to increase the efficiency of investment in the entire society and promote balanced development of the economy. The continued increase in the proportion of public sector investment will depress the medium and long-term investment efficiency and growth potential.

According to the report, policies that help boost private investment growth include: lowering the cost of financing private investment and effective tax rates (including value-added tax, income tax or social security contributions), and relaxing the threshold for private investment in some emerging industries. On the other hand, a more coordinated, coherent and market-oriented macro policy formulation and implementation will also help reduce the risk premium of private investment.

Low barriers to entry, fast loan payments, and easy approvalofCredit Loans

Ping An Bank - New Loan

Yixin - Pleasant Elite Credit

Building Blocks Times - Affordable Loans

Standard Chartered Bank - Current Loan

"You may have never thought of them, will block 13 loans on the road to your loan" Focus on "financed 360 mortgage" (fangdai123) micro signal, reply to "Wu Song" teach you to play tiger cheats, easy loans.

【Exclusive Manuscripts and Disclaimer】 All works marked as “Future 360 ​​Original” must be reproduced, excerpted or otherwise used by any entity, organization or individual without authorization in writing. Has been authorized in writing, indicating the source melts 360. Violations of the above statement inflicted violations of the legal rights and interests of 360 will be legally pursued. The materials and conclusions in the work are for reference only and do not constitute operational recommendations. For written authorization, please email: academy@rong360.com

Comment list (User comments are only for users to express personal views, does not mean that this site agrees with their views or confirms their description)
you may also like
  • How high can interest on loan sharks be? What is the difference between private lending and private lending?  Loan sharking is a kind of loan act that takes special high interest rates, and it is also a kind of loan method that people pay special attention to. The second article of the "Circular of the People's Bank of China on Banning Underground Banks and Cracking Down on Loan Sharks" issued in 2002 clearly stipulated that:
  • Civil unsecured lending disputes  Nowadays, with the strengthening of risk-reduction measures in the financial system, some banks have put forward many conditions when they make loans. The threshold for loans is high, and many people have turned their attention to private unsecured loans. The procedures are simple and short. Do you not know that these folks are not worth it...
  • What is private lending?  Regarding private lending, ordinary people are relatively unfamiliar and may also be linked to usury. In fact, in the past two years, private lending has spread from covert developments to sweeping announcements and occupied a certain market. So what is private lending? In fact, private lending...
  • Private lending rates  With regard to the interest rate of private lending, according to Article 211 of the Contract Law, if the loan contract between natural persons stipulates that interest is paid, the interest rate of the loan may not violate the relevant provisions of the state restricting the interest rate on borrowings. At the same time, according to the Supreme People's Court "On People's Law ...
  • What are the advantages of private lending?  Non-governmental borrowings are flexible, simple, fast, and have high profitability relative to bank loans. From the perspective of application conditions, private loans generally have low thresholds and are obviously more suitable for small businesses. From the perspective of flexibility: Simply put, private loans are creditors and debt...