Chinese bank refutes rumors of third child loan

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Children and parents cooperate in a military-themed sports game in Taizhou. Photo: IC

A branch of the Bank of China in east China’s Jiangxi Province refuted rumors on Sunday that it would offer credit to couples if they have a third child, shortly after China announced a new policy on Monday that allows each couple up to three children.

The Bank of China Jiangxi branch said in a statement on Friday that “based on the current assessment, there are no plans to take out such loans as existing consumer credit products can already meet demand.”

The statement came after a birth loan poster reportedly issued by Bank of China Jiangxi went viral on social media.

Under the loan program, married people can apply for a loan of up to 100,000 yuan (US $ 15,630) for the first child, 200,000 yuan for the second child, and 300,000 yuan for a third child, according to the online image.

Applicants must be married, 20 to 50 years old, and the wife must be at least six months pregnant or have a child under the age of 2. The annualized interest rate for one year is 4.85 percent and the loan can only be used for consumer expenses for childbirth and parenting and cannot be used for home buying, stock speculation, finance, or any other business activity.

In recent years, Chinese banks have made great efforts to promote consumer credit in certain areas. For example, some banks have launched products such as “wedding gift loans” and “cemetery loans”.



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