China Daily is reporting “Major consumer credit companies say they are highly confident about the growth potential of China’s consumer finance market, and plan to further expand their customer base in the mainland, mainly to those clients with middle and low incomes as well as rural residents.
China’s consumer finance products target customers who are mainly young people aged below 30, and more than 60 percent of them have a monthly income lower than 5,000 yuan ($720), according to a new report released by the Center for China in the World Economy at Tsinghua University.
The report said most of the customers don’t have credit cards and credit histories. Most of them use loans to buy durable consumer goods, mainly household electrical appliances, in addition to motorbikes, electric vehicles and agricultural machinery. Although concerned about the lending rate, over half of customers are more concerned about the application requirements and difficulties of getting approval.
“China’s consumer finance market has a huge potential and we are confident we will grow with the local market,” said Ondrej Frydrych, CEO of Czech-based Home Credit, a leading foreign lender to consumers in China.
“We will further increase investments in China, deepen our business, and expand our customer base of people with lower incomes,” he said.
With a nationwide distribution network and customer service network in China, Frydrych said Home Credit had a clientele that was mostly not financially sophisticated. He said his company wanted to help them to promote their financial literacy and understand their responsibilities as well as the process of loan repayments.”
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.