(Yicai Global) Nov. 29 -- Several state-owned banks including Industrial and Commercial Bank of China Ltd. [SHA:601398] (ICBC) and China Construction Bank Crop. [SHA:601939] (CCB) have introduced rental housing loan offerings to provide financing support for real estate developers and individuals as the government pushes policies to promote the industry.
ICBC’s Beijing Branch said yesterday that it will offer exclusive financial products for corporations and individuals in the rental housing market, enabling developers to obtain 80 percent of the total investment in a project with a 25-year term and individual tenants to get USD151,700 (CNY1 million) for 10 years, Beijing News reported. In the next 5 years, the bank will provide the Beijing leasing market with at least CNY600 billion in financing support.
CCB previously unveiled a CNY1 million personal rental housing loan product with a 10-year term, using the central bank’s 4.35-percent benchmark annual interest rate, which is lower than the rate for property purchase loans.
Bank of China Ltd. [SHA:601988] recently said that it had signed a cooperation agreement with Xiamen authorities to provide financial services to develop the city’s housing leasing market. Alipay, a third-party payment platform owned by e-commerce titan Alibaba Group Holding Ltd. [NYSE:BABA], has put similar housing financial products to the market.