Banks in China are both loosening and hastening their loan approval processes, as they search for profitable opportunities amidst a push from regulators for the financial sector to better support the real economy.
A report from Diyi Caijing says that many banks are accelerating their review and approval processes for property loans, as well as online application procedures for personal consumer loans and micro-and-small enterprise loan.
Some lenders have also loosened requirements with respect to the usages of loans made to micro-and-small enterprises.
With profits under pressure, domestic analysts expect the future trend to be for banks to search for opportunities in financial inclusion and personal lending, with an especial focus on “high growth and high pricing” consumer loans.
One bank in Beijing said that the approval time for business loans had fallen to just 3 to 5 working days, while loans for both new and pre-owned housing can be made within just a week after filing. The overall review and approval period for property loans has shrunk to just a month, for a halving compared to the start of 2022.
Another lender in the Jiangsu province city of Suzhou said that personal home loans can be approved in as little as 2 days as long as applicants provide complete materials.