Recently, the national student funding management center of the Ministry of Education issued an early warning to remind students and parents to guard against various forms of campus loan fraud. Shanghai, Changsha and other places also issued documents to remind them of campus loan, training loan and other consumer credit product risks.
College Students credit loans provide financial convenience for students to achieve self-improvement, consumption and entrepreneurship, but the entry of some informal online loan platforms makes this market chaotic and criticized. In addition, some organizations, under the guise of credit loan, cheat students into the usury trap and let people give up campus loan.
What are the needs of college students for credit loans? What is the overall operation of this market? To ensure the stable and healthy development of the campus credit loan market, what short boards need to be supplemented? In this regard, we conducted an investigation and interview.
College Students credit consumption is booming, and there are hidden traps in online loan platform
Zhang Huiping, a sophomore at Beijing Normal University, liked to shop on e-commerce platforms such as Taobao and Jingdong. Due to her good credit, her Huabei has a credit line of nearly 10000 yuan, although the credit line is not low, I will not spend money indiscriminately, depending on whether it is worth it or not.
Zhang Hui used to pay the physical examination fee with Huabei and repay it in installments. Repayment is made in six installments, less than 300 yuan per month, with little burden. Zhang Hui said that many of her classmates have used consumer credit products such as Huabei, borrow Bei and newspaper English training, dance class and cooking class, all for self enrichment.
There are not a few college students with the same consumption concept as Xiao Zhang. It is estimated that the scale of College Students consumption market in China has reached hundreds of billion yuan, and it is expected to maintain an average annual growth rate of about 5% in the next few years, which will generate a huge demand for consumer credit. According to the 2018 college students consumption insight report released by iResearch, in 2018, the average monthly living expenses of college students exceeded 1400 yuan, with the highest proportion of groups in the first tier cities with more than 1800 yuan, and nearly half of college students had credit consumption behavior of installment payment.
However, there are not only rational consumers among college students, but also chop hands dominated by vanity. In June, Li Yin, a freshman at a college in Northwest China, decided to buy anime dolls online, but he didnt have enough money. At the recommendation of his roommate, he opened an account on a cash loan platform. One bedroom is for one person, and roommates tend to follow suit. Zhang Yuwei, a teacher at the school of European language and culture at Beijing Foreign Studies University, believes that many students understand the hidden dangers of ahead of time consumption and loans, but peer effect is one of the reasons why they cant resist the temptation.
Its hard to stop. Liu Zhenzhen, a senior at a university in Northeast China, said that after getting used to loan shopping, the string of living within your means and keeping your money down was loosened. There was no feeling of ordering things, and the cost was growing. A year ago, the credit line of 3000 yuan was more than enough, and now it is barely enough.
In front of the huge demand for credit consumption, all kinds of informal online loan platforms with deep and pit are also integrated into the campus, which makes college students who are not deeply involved in the world defenseless.
Taking training loan as an example, many training institutions deceive students to pay their tuition by installment, but they handle high interest loans for them on the online loan platform without their knowledge. Beauty loan aims at the female college students who love beauty. They are induced to over consume by the black intermediary or beauty agency and sign a large amount of loan contract. Once these loans are carried on their backs, they become a burden that cannot be thrown away, and even cause huge economic losses and personal injuries.
In order to purify the market environment, in April 2016, the relevant departments issued a notice clearly requiring universities to establish a daily monitoring mechanism and a real-time early warning mechanism for bad network loans on campus. In May 2017, the former CBRC, the Ministry of education and the Ministry of human resources and Social Security jointly issued the notice on Further Strengthening the standardized management of campus loan, which requires that the online loan platforms engaged in campus loan business shall suspend the newly issued campus online loan business targets, and the institutions established without the approval of the banking supervision and management department shall not provide credit services for college students.
High cost and low income make it difficult for commercial banks to fall in love with campus loans
In the face of the spread of illegal campus loans, people cant help asking: since the demand for college students credit is so strong, why dont regular financial institutions vigorously cultivate and cultivate this market?
In fact, in 2017, when financial regulatory authorities stopped illegal campus loans, they also encouraged formal financial institutions such as commercial banks to enter the market to serve college students. In recent years, banks have stepped up efforts to promote student credit cards and other consumer credit services on university campuses. Industrial and commercial bank, construction bank and other state-owned big banks, as well as China Merchants Bank, Shanghai Pudong Development Bank, China Guangfa bank and other joint-stock banks have issued nearly 100 kinds of credit cards for college students.
Student credit card really meets the credit needs of some college students. For example, Li Yao, a junior in the accounting department of a university in North China, has excellent grades but poor family. According to the introduction of his classmates, he came into contact with a credit card product specially made by a large state-owned commercial bank for the students in school. The product stipulates that the students who apply for the card should meet the requirements of excellent academic performance, excellent title and scholarship. Li Yao obtained 2000 yuan of credit for the first time.
But on the whole, the student credit cards issued by these banks are far from the students needs.
First, students are required to deposit before spending. Before issuing and increasing the amount, students must obtain the consent of the second repayment source, and the other party must provide written guarantee materials for repayment.
Second, the credit line is not high. Generally, the credit limit of undergraduates is from several hundred yuan to two or three thousand yuan, and the credit limit of postgraduates is less than ten thousand yuan.
College students generally feel that the banks credit card issuance is not as fast and convenient as the online loan platform, and the amount is free, not easy to use. . In fact, the bank has its own explanation for doing so. First, there are interest rate restrictions on bank lending, said Xue Hongyan, assistant dean of Suning Financial Research Institute. The profit model of campus loan is that high interest rate covers high risk, but as a formal financial institution, banks must ensure that interest rate is inclusive enough. This makes it difficult for banks to make profits from the campus loan products. Secondly, the banks are faced with operational constraints. The campus market is relatively scattered, the cost of personal loan business is high, and its attraction to regional banks is limited. For national large banks, this business is also difficult to attract attention at the strategic level.
At the same time, consumer credit products such as Huabai and Baitiao rely on e-commerce scenarios and flow entrances, better cater to young peoples consumption psychology and use habits in product design and other aspects, and further compress the space of bank credit cards in the campus financial market, Xue Hongyan said.
To improve credit system and guide rational consumption
In the future, how to promote the stable and healthy development of College Students credit loan market? Industry insiders believe that regulators, institutions, schools, families and individual students should make a difference.
u2014u2014Strengthen supervision and guidance, block the side door and open the front door.
Dong ximiao, chief researcher of Xinwang bank, believes that on the one hand, more commercial banks, licensed consumer finance companies, Internet Finance platforms and other market entities should be encouraged to enter the campus financial market to meet the reasonable consumer credit needs of college students; on the other hand, the regulatory authorities should work together with public security, courts, human resources and social security departments to achieve governanceu201c Combination boxing forms a high-pressure situation against illegal campus loans to prevent the resurgence of the dead.
On October 21 this year, the Supreme Peoples court, the Supreme Peoples Procuratorate and other departments jointly printed and distributed the notice on Several Issues concerning the handling of criminal cases of illegal lending. The notice is clear: those who violate the state regulations, without the approval of the regulatory authorities, or beyond the scope of business, and for the purpose of profit-making, regularly issue loans to unspecified objects of the society and disturb the order of the financial market, if the circumstances are serious, shall be convicted and punished for the crime of illegal business operation. Experts believe that this is a head-on blow to illegal campus loans, which is expected to purify the market.
Of course, it also puts forward new requirements and challenges for formal financial institutions to meet the demand of campus credit market. Hubei Provinces bancassurance Bureau said recently that it will strive to provide consumption credit of 8 billion to 10 billion yuan to college students in the province according to the standard of 5000 yuan per student consumption loan. This is to be expected.
u2014u2014Speed up the construction of College Students credit system, strengthen risk control ability, and reduce borrowing costs.
Due to the lack of credit data, the credit line of College Students credit card in commercial banks is very limited at present, Huabei, Baitiao and other consumer credit products give college students a certain amount of credit, but the same way as adult credit rating with income sources. In the case of unable to form personal credit report in time, the only choice for commercial banks is to follow strict credit review procedures, which will lead to the increase of operating costs and the contraction of business scale, and the strict loan application conditions also make college students look forward to loan. Therefore, the urgent task for commercial banks to step into the campus is to establish and improve the personal credit system of college students.
In this regard, the experts interviewed have two suggestions:
First, on the premise of ensuring the safety of personal information, the supervision departments, financial institutions, credit agencies and universities should speed up information sharing, establish a credit system for college students, and develop credit rating and credit products that adapt to the characteristics of students on this basis, so as to improve the ability of accurate pricing of products.
Give the right people the right product. Accurate and appropriate products and quotas can inhibit college students over borrowing impulse. According to the risk assessment results calculated by big data, the company will limit the transaction amount of student users and prevent them from over consumption and over consumption, said the head of an online lending platform. The initial credit limit is as low as 500 yuan, which can only meet the reasonable learning and consumption needs such as training and purchase of non-high-end smart phones.
Second, financial institutions use big data, face recognition, voice recognition and other artificial intelligence technologies to analyze users consumption habits when they overdraw consumption, so as to help financial institutions identify users and improve their risk control ability and ensure the sustainable development of business.
u2014u2014Guide college students to establish a correct concept of consumption and awareness of risk prevention.
Todays college students are tomorrows high consumer groups. Developing small loan services is conducive to the cultivation of potential consumer groups by banks. This is the consensus of the industry.
However, to make this reserve team grow up healthily, it is not enough to only popularize the credit consumption mode. It is a required course to establish correct consumption concept and risk prevention awareness.
Yin Zhentao, deputy director of the law and Finance Research Office of the Financial Research Institute of the Chinese Academy of Social Sciences, believes that many campus loan cases reflect the problems of College Students lack of financial knowledge, risk prevention and weak legal awareness. Schools should strengthen the education of College Students legal, financial, safety and other related knowledge, and guide them to take up legal weapons to protect themselves at a critical time.
Yin Zhentao said that college students should advocate a self-reliance, civilized and healthy lifestyle, reasonably arrange living expenses, and conduct rational and scientific consumption. Parents should also pay more attention to their children, keep communication with them, understand their normal needs, and remind them to stay away from the trap behind all kinds of greed.
According to the experts interviewed, in the developed market economy countries, it is common for college students to complete their studies by means of commercial loans, which can relieve the family economic pressure and provide more possibilities for personal development. The number of college students in China is huge and the demand for credit is considerable. After decades of rapid development, the financial industry has the conditions to develop the campus credit market, no matter in terms of capital strength, organization and technical ability. The key lies in how to effectively control risk and provide efficient services.
Dong ximiao said that in recent years, the campus loan market has gone through the process from highlighting problems to solving problems. In the future, after breaking the development bottleneck, it is expected to realize the win-win pattern of college students, families, financial industry and education industry.
See clearly the pattern of illegal campus loan
Enticement loan: in order to entice college students to borrow money, the loan amount was only 35000 yuan at first, so the interest would not be high in a short period of time. But if we add the service charge and all kinds of fees, the actual loan interest is very high.
Buried pit of contract: before signing the loan contract, college students thought that it was only the repayment of principal, and after signing the contract, they were added with interest, handling fees and other contents. Once the repayment capacity is exceeded, the borrower will be controlled by the contract and will have to tear down the east wall to replace the west wall.
Balance sheet crisis: many illegal campus loans overdue repayment time limit by hours or even minutes, debt will double up. When students are not able to repay the loan, they are required to balance the account, that is to say, go to other loan companies to borrow money and repay it, and then owe more debt.
Circumvention of Supervision: the law does not protect usury, so the employees of illegal campus loan will accompany the students to get money from the bank, and leave the banks flow credentials through cash transfer. Some campus loan associations first put the total amount of the loan into the bank card. After students take it out, they cant get all the money due to various items, but they still have to repay it in full.