What Are the Different Types of Loans on Benefits Plans?

The rise in the interest rate on mortgages caused by the new real estate policy restricts the financial strength of buyers, but employees of some joint-stock banks can still enjoy low-interest mortgages. It is reported that employees of China Merchants Bank (600036, shares) can enjoy China Merchants Bank's low-interest loans to buy housing benefits, can get a ceiling of 800,000, the loan interest rate is three months deposit interest rate of low-interest loans.

Welfare loan

Right!
The New Deal on Real Estate
The New Deal on Real Estate
In 2008, a report letter to major media opened a black hole in internal employee loans for a joint-stock commercial bank.
The report stated that the bank's regular employees across the country can enjoy benefits of very low interest rate employees' working capital loan loans. Due to the extremely low interest rate (only 1.875%), bank employees have fully used the "welfare". Its outstanding balance increased from less than 300 million yuan in 2001 to 3.207 billion yuan at the end of 2007. Based on this calculation, the bank's regular employees enjoy an average of 226,000 yuan in low-interest loans. The bank's approach is not unique. Similar low-interest preferential loans to internal employees are "open secrets" in the banking industry.
In fact, in order to solve the housing problem of employees, all banks have implemented similar employee housing loan policies, providing low-interest loans for the personal purchase of bank employees, and formulating corresponding loan quotas according to the level. Taking a state-owned bank as an example, its internal loan interest rate is the demand deposit rate.
It is worth mentioning that foreign banks that have always been regarded as "non-stick pots" have also implemented an internal low-interest loan system. For example, a foreign bank employee's loan line is 100 months salary and the interest rate is 3%. The other foreign bank does not set a limit on the amount of loans, but can only issue loans for a set of housing, and the interest rate is also 3%. In fact, some foreign banks implemented this system with reference to overseas standards before setting up a local corporate bank. Since foreign banks were not able to issue RMB loans at that time, they discounted their employees' housing loans in Chinese banks. But foreign bankers have emphasized that this is a regular employee benefit approved by the board.
However, it is difficult to explain the conflict between this system and the current legal system, whether it is the "public secrets" of Chinese banks or the "regular employee benefits" of foreign banks. Article 40 of China's "Commercial Banking Law" clearly states: "Commercial banks must not issue credit loans to related parties, and the conditions for granting secured loans to related parties must not be better than those of other borrowers for similar loans." The so-called related parties are Including: "Directors, supervisors, managers, credit officers and close relatives of commercial banks."
Therefore, whether low-interest loans issued by banks to internal employees belong to consumer loans under credit loans, or home loans and car loans under secured loans, all violate the relevant provisions of the Commercial Bank Law and violate financial resources. Market economy principles of distribution by price.
If it is said that internal loans are used to buy a house is still a gray area, then the evolution of bank loans "playing new shares" has clearly belonged to the "black" category. Some insiders said that when the stock market was hot, the bank issued new loans in accordance with the level. The average bank employee can loan 300,000 yuan, and the president level can range from 600 to 2 million, earning 15-20%. Hit new revenue. What's more, a bank executive uses internal loans to preferentially subscribe for shares in its own bank.
Relevant experts pointed out that today, when banks are generally listed as public companies, the low-interest internal loan system faces at least the following risks: First, legal risks. Cinda Securities chief analyst Liu Jingde said that in the current high interest rate situation, if the bank's approach is true, then it has obvious characteristics of insider trading, which is a deception to shareholders, depositors and customers. The second is the moral hazard of employees. In some branches that are not strictly regulated, internal loans can easily be developed into real estate funds, and even enter high-risk areas such as securities and futures, resulting in non-performing assets.
However, some bank employees said that they should not "look only at thieves eating meat and not see thieves beaten." Although bank employees' internal loans are favorable, the marketing tasks they usually undertake are also very heavy. Many banks allocate marketing indicators such as credit card issuance, fund sales, and deposit deposits to individuals. Bank employees often have to travel to relatives and friends to exhaust their personal relationships to complete the task. The hardship is known to outsiders. [2]

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