Recently, some state-owned banks in Zhejiang Province have adjusted the rules for early repayment of car loans, extending the minimum term for early repayment of 5-year car loans from 2 years to 3 years. If the minimum term is not reached, the corresponding liquidated damages will be charged. Up to now, some outlets of Industrial and Commercial Bank of China and Agricultural Bank of China have implemented the new regulations.
The interviewees believe that the adjustment is intended to alleviate the profit pressure caused by early repayment. In the previous "high interest rate and high return" model of car loans, some consumers reduced inte...
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